00:00:00: Do you want me to break down the rest of the cost?

00:00:03: Yes, please.

00:00:04: Okay so the total that I've mentioned when we started... The total would be worst case about fifteen percent

00:00:13: and That's up for purchase price

00:00:15: Of the Purchase Price And that includes that three in a bit percent For the agent.

00:00:21: Thank You

00:00:23: That includes your purchase tax, which is a statement that you'll get somewhere between six to twelve months after the purchase.

00:00:30: It varies depending on the official evaluation Which is always a bit different to market price.

00:00:34: but you can assume it will be somewhere between one and half to two-and-a-half percent normally.

00:00:41: And legal and registration fees would...which would be somewhere Between two to five percent.

00:00:45: again They fluctuate depending on The Official Eval which we don't know until We Get Closer To Settlement.

00:00:51: So All up worst case and maybe you have to pay a double commission if it's one of those properties which he really, really like in.

00:00:58: the agent is greedy.

00:00:59: so worse case we say.

00:01:00: Up to about fifteen percent.

00:01:03: okay thank you for the clarification.

00:01:06: I think get

00:01:07: closer hopefully close to ten

00:01:09: word.

00:01:10: worst-case scenarios.

00:01:11: continue into own real estate California.

00:01:15: i've been hearing about that

00:01:31: Either folks and welcome or welcome back to Nippon Trading International's Japan Real Estate Podcast.

00:01:36: I'm your host, Ziv Nakajima again And this podcast is brought you among others by Emil Gorgies of realestate.jp.

00:01:44: He's a Tokyo real estate agent who specializes in serving international or mixed nationality families Who are looking for the perfect family home.

00:01:52: So, Emile is an Australian.

00:01:53: He's been living here in Japan for over two decades now and for about half of that time he has been buying selling and managing real estate properties... ...in Tokyo on behalf his own family and the great many happy clients And also acts as a mortgage broker on behalf of this client.

00:02:07: so it got dedicated loan officers.. ..and many Japanese megabanks.

00:02:11: And if you're a regular listener of the podcast, You probably already know him from our JREP The Japan Real Estate Experts Panel Sessions.

00:02:19: Which means that your all ready aware of fact That the man is an absolute fountain Of wisdom on everything related to real estate in japan and In particular family homes the greater Tokyo metropolitan area and mortgages.

00:02:32: Most importantly he's incredibly generous with his time and advice which Is more than happy To provide at no cost or commitment to anyone asking.

00:02:40: so If u've been thinking about buying your home in Tokyo, but you've been sitting on the fence for a while or just want to have chat with a real expert.

00:02:48: Drop him online at salesatrealestate.jp.

00:02:53: Hit up today and start exploring

00:03:05: both audio calls only, unfortunately.

00:03:07: so no need to jump over to YouTube for this one if you're tuning in via the podcast.

00:03:11: and this first one is with a long time Japan enthusiast who's just about ready to pull the plug on his first holiday home purchase.

00:03:19: In or near Tokyo Kanagawa Chiba to be used by himself and his young daughter whenever they are visiting which from the sound of it will quite often.

00:03:27: And he was wondering where exactly should he be buying if his total budget, including purchase costs is about a hundred thousand US dollars.

00:03:35: How much are these purchase cost?

00:03:36: Exactly what they include and What could he compromise on If you wants to fit within that budget in this locations we also talk About the best places to find listings how realtor commissions work In Japan our own services working when He might want To use us at all how remittances into and out of the country work, and also a breakdown on how in-person and remote viewings work for clients who might be here in person but could potentially be away when the right listing turns up.

00:04:06: So real nice and thorough review of the purchase process which is probably going to be quite a handy reference from many of you.

00:04:13: enjoy the conversation And we'll be right back with another call Right after this.

00:04:19: Awesome.

00:04:20: so what do mean long time coming?

00:04:22: You were waiting to purchase for a long time.

00:04:25: I have been in and out of Japan over the last, gosh decade.

00:04:30: And uh...I was in Tokyo last year for spring break with my daughter.

00:04:37: Okay When we came back to LAX she just kind goes you know why did we come back?

00:04:46: How old is he?

00:04:48: He's eleven years old.

00:04:50: Oh wow that's early to fall in love with a country.

00:04:53: That's nice.

00:04:54: Yes, well more so.

00:04:55: the egg salad standoffs.

00:04:58: Fantastic!

00:05:00: Okay you found Ami on Instagram that we helped buy a house in Chiba and you... okay looking for holiday home right?

00:05:11: So I've narrowed it down because there are so many options kind of the more i look at them or want.

00:05:20: So by harrowing it down, I initially thought that I wanted to be on the east side somewhere in Chiba almost as far south as Kisarazu.

00:05:36: Again i'm new at this.

00:05:39: so In my price range From what?

00:05:44: I've observed if to the east side of Tokyo Bay in the Yokohama area.

00:05:52: I can get a smaller home just as nice, maybe no garage or backyard but it's also close to

00:06:04: everything.".

00:06:07: That is correct because first question i was going ask you are sure that you want to leave an rural Chiba prefecture?

00:06:13: It gets pretty rural out there!

00:06:17: Thank You for the clarification.

00:06:18: Yeah,

00:06:20: okay.

00:06:22: So I don't mind sacrificing um square footage i don't mine sacrificing a garage as long as it's within the same price point.

00:06:35: uh...I really love the idea of Yokohama and my daughter and I have kind of gone through what in the area in certain neighborhoods And I got her approval, so I'm leaning more towards Yokohama.

00:06:51: Okay when you say price point what price point are we talking about?

00:06:57: Between seventy five thousand and a hundred thousand dollars?

00:07:02: okay.

00:07:03: So in Japanese yen terms at the moment That would be a max of about sixteen million yen.

00:07:13: is that including purchase cost or just the listing price itself?

00:07:18: So that's again, thank you for taking my call.

00:07:21: I know we're a world apart and i'm very grateful for your time.

00:07:27: There is.

00:07:29: Could could you maybe explain to me the breakdown?

00:07:34: Sure so purchase costs are usually at around this price level.

00:07:39: purchase cost would be worst case about fifteen percent hopefully less than them.

00:07:47: Sorry, I'm working from home.

00:07:48: There's some cats talking here in the background... sorry about that!

00:07:52: So if we take that as including purchase costs.

00:08:03: That gives you... Hang on what am i doing?

00:08:06: Sixteen million yen Takeoff fifteen percent.

00:08:18: I'm doing something wrong.

00:08:20: hang on a tick.

00:08:24: Well, let's go with the hundred thousand.

00:08:26: That's easier.

00:08:26: so a hundred thousand us Take off Fifteen percent and So that's including cost.

00:08:40: that gives us about eighty seven million yen.

00:08:43: And sorry at eighty-seven thousand US which means About fourteen million yen.

00:08:52: so should be doable.

00:08:54: but my issue is if we're going for Yokohama There's one of two things we'll have to compromise on, either the age of the property which I would prefer not to compromise because that puts you in a high likelihood of having major structural issues.

00:09:12: They're not really built to last in Japan.

00:09:13: so anything past thirty-forty years of age will start having some more or less medium or major structural issue and for the same reason they get them more annual maintenance costs than you'd be accruing.

00:09:29: You're kind of semi-expense free unless something happens until about thirty years, and then you start putting I don't know one thousand two thousand dollars into the property every year just in average maintenance and repairs.

00:09:41: And as it hits forty fourty five its more like um to three thousand dollars a year.

00:09:47: so To avoid that we'd normally recommend if you can focus on something thats twenty years or younger.

00:09:55: that gives you about ten years of not having to worry too much about structural issues and maintenance.

00:10:00: And then, you might be okay with it or consider reselling it buying something younger whatever the case may be.

00:10:05: So one compromise we'd make would end up costing in the long run Or alternatively distance from central Yokohama.

00:10:16: The more suburban-ish we get within Yokohma... ...the newer properties will at same price range.

00:10:25: But then, I mean it's not as rural as Chiba prefecture rule.

00:10:29: but Yokohama is a huge city.

00:10:31: It can get very suburban right?

00:10:33: Like you'll go up and down the hill and there are rice fields around here or stuff like that.

00:10:37: And it might be...I don't know.

00:10:39: ten minute fifteen minutes walk to station than another twenty minutes to Yokohamah Station.

00:10:45: So which of these do think would be more comfortable?

00:10:50: compromising on

00:10:54: My, my preference would be to wouldn't-to be within like fifteen to twenty minutes of a station.

00:11:00: Um I would also...I kind of prefer the more suburban?

00:11:05: I love the streets uh The people Of course and How do i say this?

00:11:16: in Chiba I might Be able again To get something bigger with space But then I'm further from what I actually want to be there for.

00:11:26: So you want proximity, so fifteen-twenty minutes to a station is not the problem.

00:11:30: We can probably even get closer than that to a Station.

00:11:33: The question is from that station to central Tokyo which I'm assuming Is where you wanna be close too?

00:11:38: How far of a commute would you be okay with

00:11:43: anything within an hour?

00:11:50: Okay That should be doable within that budget.

00:11:54: Okay, so the listings you've mentioned... You noticed a few listings that you might be able to get if you compromise on footage and parking but how old were those houses?

00:12:02: Do you remember?

00:12:07: That I don't know!

00:12:08: i could possibly screenshot the listing and email it to the thread we have created If thats helpful.

00:12:16: Yeah there will some tooling in throwing And im assuming if we work together then we'll probably switch over To whatsapp where can respond quicker.

00:12:26: But again, I would look at that shortlist you've made and filter out houses that are let's say twenty-five years or older.

00:12:36: Okay?

00:12:37: And see if your left with anything...and i'm assuming those house is in a location where you're feeling comfortable to commute.

00:12:43: yeah?

00:12:44: Correct!

00:12:47: Within the location unlike Chiba where we found twenty of thirty actually only two.

00:12:57: So, oh

00:12:58: okay.

00:12:59: It's mine that there is like significantly less available in the area.

00:13:03: Yeah well

00:13:05: let us run the age filter on those two just to make sure you are not looking at something thats like eighty years and older because it would be a bucket of problems you will buy.

00:13:16: Okay thank for your insight.

00:13:22: Otherwise I think once we loop in a real tour who'll actually be running searches and they've got access to more, you know some of the websites that are bit more challenging to navigate an English like local realtor websites.

00:13:37: And then national real estate database and so forth will probably able to float Some more listings your way than what you're fine?

00:13:44: Where Are You Searching?

00:13:44: by The Way

00:13:48: I Got sent a link To one Of.

00:13:52: I got IKEA hub, IKEA Mart is a... Yeah.

00:13:58: Kia Mart here.

00:13:59: IKEA Hub, okay?

00:14:04: And what?

00:14:04: the Kia Mart are probably the more comprehensive database if you want to Are you do have a paid subscription on any of those?

00:14:18: no i do not.

00:14:19: It's like it get like a couple for free.

00:14:23: Right.

00:14:24: well If You Get the subscription, the pro-subscription on Akia Mart.

00:14:30: I think that's like fifteen bucks a month.

00:14:32: it's nothing too crucial.

00:14:35: you can put in my name as a coupon code ZIV when your checking out and then they'll be cheaper or first month free because they advertise on our podcast.

00:14:48: Yeah

00:14:53: It seems to be good search engine.

00:14:55: You know, again I'm contacting you from California and the United States.

00:15:00: Here we have Zillow...

00:15:05: I wish i had something like that here

00:15:08: but

00:15:09: Akia

00:15:10: Mart is the closest thing to Zilllow or Redfin or stuff.

00:15:14: in the US.

00:15:14: they scrape all of their major property websites And give them to you with map filters, geographical dynamic maps.

00:15:22: you can zoom in on a location, see listings pop up.

00:15:24: So it's very handy interface and they do scrape all of the major property websites.

00:15:30: so that is probably where I'd start.

00:15:34: I key a mark.

00:15:36: Marked yeah

00:15:39: All right.

00:15:40: And aside from that again once we loop-in you're getting a bit more ready to pull the trigger, then we'll loop in a real tour who will help you search as well.

00:15:50: So he'll provide some listings that I've provided other listings and they don't live in your head obviously.

00:15:55: so it's always be best filter for what kind of properties are more to your liking or not.

00:15:59: there would be hidden miss when somebody else is searching but eventually land on shortlist hopefully going bigger than two

00:16:14: thank.

00:16:17: So I read the information that you sent.

00:16:21: You serve as a proxy?

00:16:27: As a proxy and or advisor, so... The actual proxy service is a logistics kind of service.

00:16:33: if i put in touch with a foreigner friendly buyer side agent whose handled remote transactions were non-resident buyers then they can handle the proxy part same than we would have done.

00:16:48: The other side of what we do is that, We provide guidance and due diligence.

00:16:54: And raise red flags like the conversation That we just had about the age Of the property how suburban this is or not.

00:17:01: most agents will Not Do that with you.

00:17:02: their job Is to get a listing Or give You A Listing?

00:17:05: And then manage the purchase so that it's Legally under your name as smoothly As possible.

00:17:10: but they're not going to have deep strategic conversations with you.

00:17:14: They'll just help you buy whatever you point them at, so to help you ask the right questions run the property diligence review the documents before your sign then make sure there's no any surprises in there and You can bring us on as consultants which is a lot cheaper than having this As a proxy doing everything on your behalf.

00:17:32: And we will create that WhatsApp chat group with agent.

00:17:36: Again, we'll be guiding the process.

00:17:38: due diligence help you prioritize.

00:17:39: The properties make sure you're not making any costly mistakes.

00:17:45: Thank You.

00:17:45: and then again in the United States When when you sell a house right?

00:17:51: I'm selling my house right now.

00:17:54: II payed the real estate agent And then the real-estate agents splits the commission between the buyer's agent and my agent.

00:18:04: So there's

00:18:07: a

00:18:09: proxy fee A buyer's agent fee?

00:18:11: Like do I pay a fee to the real estate

00:18:13: agent.

00:18:14: So it is bit different here, so let us put the proxy component we can put aside because that will be inside the Realtoros commission anyway.

00:18:27: if for any reason the seller does not accept an agent as your proxy then you could pay someone like us separately.

00:18:34: but Putting that aside, the way it works is... The listing agent.

00:18:39: who's the seller's agent?

00:18:40: basically they get contacted by the seller to list a property.

00:18:43: They charge this seller if they find the buyer themselves and also gets charged a buyer If another agent brings a buyer then the buyers' agent gets to charge the buyer.

00:18:53: So you normally just pay one fee which is the buyer-agents fee.

00:19:06: And forgive me, you serve as my proxy.

00:19:09: Then the second fee would be the buyer's agent and then

00:19:17: there is no backtrack There's not a second fee.

00:19:19: so normal transaction.

00:19:21: let say I'm not involved at all.

00:19:22: does know i mean The agent to serving as your proxy?

00:19:24: There's nothing.

00:19:25: do You just go directly via an agent than you pay Your agent.

00:19:29: that's it?

00:19:29: this one real estate commission which Is three percent plus sixty thousand yen plus tax.

00:19:35: okay

00:19:36: Okay,

00:19:37: and that gets paid on settlement to your agent okay?

00:19:43: If you want if you want just a referral to a buyer side foreigner friendly agent We don't charge for that.

00:19:48: I'll just introduce You do one and you can go with them directly on your

00:19:51: own.

00:19:54: oh Okay, you know i mean i see the elephant in the room I don't speak Japanese and i don't know the area.

00:20:02: No,

00:20:02: no English speaking English-speaking vetted buyer agent who's foreigner friendly?

00:20:07: And has done this before?

00:20:11: Okay Understood and okay

00:20:15: well thank you.

00:20:16: so

00:20:16: that's

00:20:16: Assuming that's the way you go in.

00:20:18: it's a normal deal.

00:20:19: You just pay the single commission to your agent.

00:20:22: ok three percent plus sixty thousand yen plus tax.

00:20:26: Ok

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00:22:29: Don't be shy to reach out to him as well at salesatrealestate.jp.

00:22:34: and now back to the podcast.

00:22:38: still leaving me aside there are some cases in which the sellers agent their company has a bit of a greedy policy whereas they don't want to share their commission with a buyer side agent.

00:22:48: They wanna double dip and charge both sides.

00:22:53: Okay If we land on one of those properties in a greedy agency and you're really keen on that particular property, and you want to buy it.

00:23:11: You'll have the option to pay your buyer's agent as separate fee same amount And then they will do for you.

00:23:19: but In this case ,you need double commission One to the seller's agent because they don't want to share.

00:23:29: So

00:23:32: I only keep that for properties you're otherwise very, very keen on?

00:23:35: Otherwise if we contact them and say no but it's just one of a bunch of properties then move onto the next one.

00:23:45: Okay thank-you And those are some nuances in this conversation.

00:23:53: Yeah, yeah.

00:23:53: But I mean again the buyer side agent that i'll refer you to will know how to handle.

00:23:57: That's still just logistics of the purchase.

00:24:00: they'll be very well versed in that.

00:24:01: that's not an issue.

00:24:03: Okay so basically we're purchasing.

00:24:06: normally would You'd be purchasing with you paying a single real estate agent commission Of three percent plus sixty thousand yen plus tax.

00:24:14: In some rare cases, you might be really keen on a property and it might be one of those where you have to pay a double commission.

00:24:22: But that would be the exception not the law.

00:24:24: then

00:24:26: thank You for the clarification.

00:24:29: And if you do If you do want us in consulting on the purchase meaning making sure everything is done properly that your diligence has been Raising red flags letting you know of any expenses that you might not be aware Of because he don't know what questions to ask reviewing the documents To make sure there are no surprises in their then we can come and as consultants As you work with your agent.

00:24:52: And that's a hundred and ten thousand yen.

00:24:56: Okay, okay Thousand yen.

00:25:03: And Then the really god where did it go?

00:25:06: I have a lot of questions but i'm trying to consolidate this.

00:25:16: I lost That's

00:25:18: right.

00:25:18: Do you want me to break down the rest of the cost?

00:25:22: Yes, please.

00:25:23: Okay So the total that I've mentioned when we started the total would be worst case about fifteen percent

00:25:32: And that's up for purchase price

00:25:34: Of the purchase price and that includes that three in a bit percent for the agent.

00:25:40: Thank You

00:25:42: That includes your purchase tax, which is a statement that you'll get somewhere between six to twelve months after the purchase.

00:25:49: It varies depending on the official evaluation Which is always a bit different to market price but you can assume it will be somewhere between one and a half to two-and-a-half percent normally.

00:26:00: And legal and registration fees would...which would be somewhere Between two to five percent.

00:26:04: again They fluctuate depending on The Official Eval which we don't know until We Get Closer To Settlement.

00:26:10: So All up worst case and maybe you have to pay a double commission if it's one of those properties which You really, really like in the agent is greedy.

00:26:18: So worse case we say up to about fifteen percent.

00:26:22: Okay Thank you for the clarification.

00:26:25: um I think get

00:26:26: closer hopefully closer to ten.

00:26:29: Worst-case scenario has continued into own real estate in california.

00:26:34: i've been hearing About that.

00:26:37: Yeah

00:26:38: These are all incredible numbers.

00:26:42: God, what was?

00:26:44: oh I keep losing it.

00:26:46: I remember and then I forget.

00:26:48: It was super important for me And I apologize that tried to come a little bit more prepared.

00:26:52: the normal The normal questions we get are how do i transfer funds into an out of Japan?

00:26:59: When do I get the title deed?

00:27:01: How does escrow work?

00:27:03: Was there any of these look like

00:27:05: What form of payment Do you accept in japan from a foreign buyer?

00:27:11: So the Japanese side needs to get Japanese yen.

00:27:15: Whoever you're paying your agent, the seller or lawyer and tax department everybody here needs to have Japanese yen right?

00:27:23: The easiest way of getting these funds across is by using a foreign exchange service like WISE or REVOLUTE or OFX depending on which amount they are paying.

00:27:32: some work better for smaller amounts.

00:27:34: Some work better with larger amounts.

00:27:36: I would sign up with two or three of them, i'll give you links to the two that we most commonly use and if you use our referral links then you also get some bonuses on your first transfer whatever.

00:27:48: And thank you!

00:27:50: You will be remitting your dollars to one of these services and they'll be remiting yen to whoever needs to get it on the other end.

00:27:58: Thank you for the clarification...I found my question.

00:28:04: since all this is done from foreign soil In a perfect world, let's say I find

00:28:12: the house

00:28:13: we all work out of deal.

00:28:17: We leave on the twenty-second this month and will physically be in Japan by the twenty third.

00:28:23: Is it possible to at least see what i'm buying in person?

00:28:29: Possibly maybe even the neighborhood or is that Am I encroaching on your

00:28:38: services?

00:28:40: No, definitely not.

00:28:41: So firstly a seller's agent won't accept an offer without somebody viewing the property.

00:28:47: if it is vacant and its tenanted then investment properties are different story.

00:28:51: but if it was vacant property like you're talking about a sellers agent wouldn't accept that offer without someone having visited or viewed their property.

00:28:59: And that can be done in one of two ways.

00:29:01: Either you're here and go there to view them yourself, we'll still have to send somebody with you because the seller's agent would freak out when a scary foreigner comes up.

00:29:11: so they'd still need to send their Japanese face but then you could use it for themselves.

00:29:15: Alternatively, we can just send our agent or buyer-side agent to view your property on your behalf connect via Zoom or take photos videos whatever case may be Properties very close to where their office is.

00:29:29: They might not charge for it and otherwise they'll charge you For the viewing trip separately, so that there commissioned a get paid on settlement.

00:29:37: But if you want them to go in remote do remote viewings of properties for you then don't charge You for their time in the trip?

00:29:44: Usually If they do a whole day let's say four or five property viewings It's gonna be if they're in the same vicinity going to be maybe two three hundred bucks.

00:29:53: Okay That's that's not bad but very different from here.

00:29:57: We're here.

00:29:58: if you hire a buyer's agent, for instance... Sometimes that you look at three or four houses and sometimes you look it twenty!

00:30:06: And the buyers' agents doesn't get paid until there is completion of sale because they are essentially working free until your hands on feed.

00:30:16: So essentially this way works as well?

00:30:19: If we were looking at properties within their neighborhood let us say commute from their office, it's not an issue.

00:30:26: But because bilingual foreigner-friendly agents in Japan are very rare and far between we can't just go to any Yokohama agent within that neighborhood or directly with a listing agent and say hey I've got this guy Jean who wants to buy this property... We can do that.

00:30:42: so suitable agents that can handle you directly as a buyer, and they're usually going to be located within the center of big cities.

00:30:51: So Central Tokyo, Central Osaka, Central Fukuoka... so if we are sending a central Tokyo agent out in your case suburban Yokohama for the day with all the expenses on meals and everything it includes then we might have three or four rounds because like I said looking at ten or twenty properties The entire commission that they make is like, usually depending on the price of their property.

00:31:17: But let's say somewhere between two to four thousand bucks.

00:31:22: if they run a hundred and fifty-two hundred dollar expenses every time they go out in view properties for you it's not leaving them with much.

00:31:30: so They'll do it for free If its around there neighborhood but once we send them other locations We have pay them further.

00:31:38: Thank you, thank you so much.

00:31:40: It everything looks super easy from Instagram.

00:31:45: Everybody it's like yeah well I kind of started going down the rabbit hole and You know very grateful for you taking my call And it uh?

00:31:55: It's very helpful For me to hear.

00:31:58: you know kind of boots on the ground, you Know what's going on?

00:32:02: We're here

00:32:03: asking What?

00:32:05: where are you located in Japan.

00:32:08: We're in Fukuoka, far west side of Japan.

00:32:10: we work all over the country but that's hand down best city I've ever lived.

00:32:15: so were not going anywhere where staying here.

00:32:18: Yeah i have seen only on Instagram.

00:32:22: it is very up and coming.

00:32:24: they called like a new Tokyo.

00:32:28: Yes, startup capital of Japan.

00:32:30: New Tokyo the gateway to Southeast Asia.

00:32:32: We got a buncha names.

00:32:33: A lot of them are bit more marketing oriented But it's very comfortable.

00:32:39: See only problem is there no direct flights from US.

00:32:41: So all over us customers even if they want live here They have to fly into Tokyo Osaka and then commute another few hours To get here.

00:32:48: so normally our U.S clients prefer Tokyo or Osaka Or this surrounds off.

00:32:52: Okay

00:32:53: well now thank you for that insight aswell.

00:32:57: And then as far as actually finding a house, I'm happy to do the due diligence.

00:33:07: It would next step be to message you and let it know.

00:33:14: hey this is what i am interested in like how we get the ball rolling?

00:33:20: First of all, I'll reply to your last email with just a blank e-mail signature which will have my mobile number in it.

00:33:28: So first step would be to add me on WhatsApp and then we continue the conversation there And then you can do one or two ways for both.

00:33:40: We work with listings that you search.

00:33:44: Again.

00:33:44: i'd recommend signing up for Akiyama Art Pro using my name as a voucher and start searching there for listings, that'll be the easiest way for you to search I think.

00:33:56: And at any point when you're ready to move a little bit further we loop in an agent or if you don't find anything on Akiyama then will look in an Agent earlier in the process.

00:34:09: If I'm consulting on the purchase, then i'll go through that list.

00:34:12: I will raise red flags to help you prioritize them one over another and tell what are things we might not be thinking about for each of those listings.

00:34:19: Then get a final shortlist via the agent.

00:34:24: We start sending inquiries from sellers to organize viewings.

00:34:27: What

00:34:33: is the correct spelling of your first name?

00:34:37: Z-I-V

00:34:38: That's it.

00:34:41: And then again, down here in the zoom window.

00:34:45: Okay?

00:34:46: Yeah I'm on my cell phone on LTE.

00:34:50: In two years My internet didn't crash.

00:34:52: it crashed thirty minutes before this call.

00:34:55: Oops!

00:34:57: And sounds as its spelt just zip.

00:35:02: yeah that's it.

00:35:03: okay Israeli Israeli.

00:35:05: It is a bit of weird name.

00:35:06: No Its safe and great name.

00:35:10: Thank you.

00:35:10: Oh thanks man

00:35:11: and thank you for all of your help.

00:35:14: Pleasure,

00:35:15: okay but

00:35:16: again

00:35:16: don't feel obliged to hire us if you don't think that we need the handholding or extra consulting and due diligence.

00:35:25: I'm very happy with an agent.

00:35:28: they'll pay as a commission

00:35:28: anyway If you're buying anything that's twenty years old though it is probably not bad idea.

00:35:42: That was kind of the term that I was thinking in the back of my head.

00:35:47: You know, you would imagine an agent who represents a foreign buyer sure will sell your house but they

00:35:57: don't buy their book.

00:35:58: They're Japanese and very professional.

00:36:01: Yes sir!

00:36:01: This is one thing i love about this country.

00:36:04: it's different from living in the United States right

00:36:08: now Yeah.

00:36:13: Okay, I think that answer is just about everything.

00:36:20: Awesome!

00:36:21: So once you add me on WhatsApp i'll also send those referral links to the foreign exchange providers we've discussed

00:36:28: okay?

00:36:29: I

00:36:30: would sign up with both of them using these links.

00:36:32: so you get bonuses and then whenever your talking any amounts in yen Pop in there and see who gives you the better rates for that amount, right?

00:36:43: So if you're just transferring my fee.

00:36:46: For example which is for the consulting?

00:36:48: a hundred and ten thousand yen check Which of them as cheaper for that?

00:36:51: And then when it's time to transfer the sixteen million or whatever It Is To The agent Then Log In There Check Which Because That Could Save You.

00:36:58: But The Most Important Thing Is Don't Let Your Bank Do A Direct Transfer And Convert The Dollars Into Yens because They'll Screw You By At Least Three To Five Yen To The Dollar Usually And that can amount to like a few hundreds or thousands of dollars, depending on how big the transfer is.

00:37:12: So sign up with both of those foreign exchange providers and whenever you need to transfer funds overseas just have a peek at which one of them is offering better rates in that moment.

00:37:21: Wow!

00:37:23: Thank You very much.

00:37:24: That was extremely

00:37:25: helpful Pleasure.

00:37:27: Hope to see you here in Tokyo.

00:37:29: If your coming to Yokohama I don't think... When did he say you're coming?

00:37:35: I will be, well i leave on the twenty second and get to Tokyo at around three p.m.. On the twenty third

00:37:45: of June

00:37:46: Of june yesterday this month

00:37:48: Okay?

00:37:49: I'm probably not gonna Be there so ill catch up with you in next visit I hope.

00:37:54: okay.

00:37:55: Well thank You very much for your time!

00:37:56: I really appreciate everything.

00:37:58: This was extremely helpful

00:38:00: Pleasure man.

00:38:00: talk to you soon

00:38:01: ok Thankyou

00:38:02: bye for now.

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00:38:54: All right.

00:38:56: so this next call is also with a first time buyer This one in the market for a ten eleven million yen investment condo That she's specifically targeting Fukuoka City Four.

00:39:08: And she was wondering what the property profile in yield would look like for this kind

00:39:12: of purchase,

00:39:13: how we can help not just for the purchase process itself but also from management post settlement and what fees are involved.

00:39:20: We also talk a bit about what Japanese realtors normally can and cannot do for buyers who researches the potential listings for the buyer and whether it can all

00:39:29: be done remotely?

00:39:37: various types of properties.

00:39:40: And the fair question that we don't get asked often, what happens if We then discuss how income tax works in Japan, whether she should be purchasing under her own name or a corporate structure of some sort.

00:39:54: How she might be able to

00:39:54: open the local bank

00:39:55: account and finally about how we screen and do due diligence on property listings in general and condos in particular?

00:40:03: How that tenancy laws and the lease renewals work And whole bunch other deep dive kind of info that you was interested.

00:40:10: so really

00:40:10: good conversation

00:40:11: which I think will bring a lot of value to many of you who are considering investing here in Japan.

00:40:16: Have a listen to this one as well and i'll see infrequent travel, everything needs to be done remotely.

00:40:39: No Japanese bank account cash purchase.

00:40:42: okay so far you've described everything that most of our clients are and budget is about eleven to twelve million yen including closing costs isn't it?

00:40:53: Yes

00:40:55: Okay.

00:40:55: So let me just quickly run on the calculator.

00:41:05: Assuming purchase cost could be a worst case scenario, about fifteen percent.

00:41:14: That gives us about ten and half million yen-ish.

00:41:22: Kondo unit Fukuoka City long term rental to Japanese tenants for monthly cash flow.

00:41:33: Okay so I mean the fact that you're targeting Fukuaka city already satisfies your requirement below that, which is the moderate risk profile stable tendency more important than yield.

00:41:44: So then that's exactly what Fukuoka City tends to provide.

00:41:49: and just so we're on the same page with Yield in a good location in Fukuoco city and assuming it building That's not too old because as they approach for the monthly fees tend to go up a bit more rapidly Which reduces the yield?

00:42:03: And also makes them less attractive future buyers.

00:42:07: So within that profile, we're talking about something like best case scenario maybe five percent net pre-tax so including all of your purchase... All of you are known to purchase and running costs but not including any unknowns in the individual tax situation.

00:42:26: Whatever income tax will be probably won't too high if it's only asset or income in Japan.

00:42:33: Maintenance vacancy I can say on average to about ten percent of the income that you need to put aside, but That's a statistic.

00:42:42: It is not super relevant To single property held over short period Of time because if You just bought it The tenant could move out three months after you bought or they Could stay in place for another eight or ten years and That kind of throws the statistics off the cliff.

00:42:56: so on average I'd say Put about ten per cent aside But thats really Just a statistical number And you need us to handle the entire purchase process.

00:43:10: That's not an issue, property management is also another issue.

00:43:15: and yes we can be your tax representative.

00:43:21: I'm just... Yes!

00:43:24: You've asked all of our questions but don't even have any to record.

00:43:26: We've asked everything in the email.

00:43:28: And yes we could put you into touch with an accountant who will file taxes for you.

00:43:33: For an individual, I'm assuming you're purchasing under your own name.

00:43:37: You don't need a company or anything of that sort right?

00:43:40: So for individuals they'll usually be a couple hundred bucks per year.

00:43:43: so the content Okay!

00:43:46: Nothing will break the bank and we normally would be able to do everything like single point-of-contact.

00:43:55: no need talk with anyone just give us authority on your behalf then make bottom line decisions.

00:44:02: We're still a little bit swamped and struggling with hiring, training to provide that service.

00:44:07: I think by the end of year we'll be able to hopefully sooner but i've been saying for awhile then recruited some people trained them.

00:44:14: they ended up leaving or letting it go because they weren't super suitable.

00:44:19: so That deadline has moving forward now and what I can do before then is, i can put you in touch with a foreigner-friendly English speaking bilingual realtor who'll be able to handle all of the logistics in english on your behalf same as we would have done.

00:44:38: Only issue it's not really an issue but the way they work here is they're not strategic like... They don't raise red flags tell you what questions to ask.

00:44:48: prioritize one listing over another, their job is to work with listings that they research or listings you provide them and make sure your purchase it legally.

00:44:59: They're not here to teach how the market works or be super strategic like what we just spoke about... Make sure the property's under thirty or younger.

00:45:10: when you buy and resell at forty or younger then there are no going do any of those.

00:45:15: Similarly Buildings due diligence info, you know the state of their renovation history.

00:45:23: Do they have renovation plans?

00:45:24: How much did get collected in reserve funds?

00:45:26: is that going to be enough for them as a innovation?

00:45:29: how likely building fees are to go up?

00:45:31: so They'll give you information.

00:45:36: if you ask them for the right Information though then make sure that you have everything and it's fully documented.

00:45:40: but they're not gonna guide You in the due diligence process how Japanese realtors work.

00:45:46: So I can either refer you to someone like that and just leave you with them, they'll help you with the legalities in their logistics of it or i can stay on and consult on the purchase which is a lot cheaper than having us do everything for you And then I will guide them on due diligence.

00:46:02: so review documents before you sign them.

00:46:04: Just make sure your not making any costly mistakes.

00:46:07: That's also a lot cheeper than have us doing every thing we need.

00:46:11: Yeah, I'm not entirely sure which one fits my situation the best.

00:46:17: Um...I do- I am mindful of costs and things like that.

00:46:20: but um It sounds like i'll be doing a lot of work in both cases anyway Like in terms of researching And identifying an area That I want and Things like that.

00:46:30: so

00:46:31: Oh no if we're If We are Doing everything on your behalf then will Be doing The research for you.

00:46:36: So You don't know I mean?

00:46:41: more than happy to receive them from you, but we'll be doing the research on your behalf.

00:46:44: And if you're working directly with an agent whether it's with or without our consulting then the agent will be doing their research for you.

00:46:51: so...

00:46:53: The hands-on

00:46:54: nature of working directly within agents is more related to you having to fill in a few more documents and you have to attend this Zoom meeting in person you having to actually physically sign the purchase contract and post it back to them as opposed to us receiving a power of attorney in doing all on your behalf.

00:47:18: So, we're going to be little bit more hands-on but process is very similar otherwise And its'all gonna be done remotely.

00:47:24: You don't need here at any point

00:47:27: My concern, I would love to come back but it just requires a little bit more planning.

00:47:32: Well

00:47:32: you're looking for a tenanted property.

00:47:34: i'm assuming that's generating income like turnkey with the tenant already in there.

00:47:38: so even if you are here in person You're not allowed to enter the property.

00:47:43: So Japanese Tenancy Laws don't allow.

00:47:46: all your be able to do is walk around the building and nod your head alot kind of thing.

00:47:51: Okay sounds good

00:47:53: Yeah, so from that aspect I mean you will be a bit more hands-on.

00:47:56: but the process is very similar whether we're doing it all on your behalf or You're working directly with an agent at least With the agent that we would recommend that.

00:48:03: We've vetted and worked through before.

00:48:05: So they're aware of what's involved in serving a non resident foreigner client.

00:48:10: Okay That gives me more confidence knowing that The agent would be vetted because that was going to be my next question.

00:48:15: if

00:48:16: yeah

00:48:17: one of these people?

00:48:18: Absolutely.

00:48:19: In Fukuoka, there's not as many agents here that are bilingual and foreigner friendly like they are in Tokyo but we do have one that we've worked with for quite some time And another one that recently been introduced to acquaintances has worked with her and said she is great.

00:48:41: Haven't worked yet though so I can testify how good she is.

00:48:47: based on a few meetings with her, I think she'll also be very good.

00:48:50: And her English, I feel is little bit better than the other guy but again we haven't worked yet so i can really testify to that.

00:49:00: Yeah okay no problem

00:49:02: We could start out and if you're not happy then move onto another

00:49:08: one.

00:49:08: Right

00:49:10: yeah!

00:49:11: But both are very valid options.

00:49:15: kind of like to support women owned businesses in Japan, because they're finding it pretty hard and a very especially real estate is a very male dominant native kind of industry here.

00:49:26: So we are happy to give her a chance if you're okay being the guinea pig at least at the beginning of the process but If not We can go directly To The guy we've been working with.

00:49:34: that's fine as well.

00:49:35: Yeah make sense.

00:49:36: Okay Do You have any other questions?

00:49:41: Like I mentioned Yeah, I mean that's

00:49:48: kind of how i work.

00:49:49: The questions I have to do with the terms of service and the fee document was sent me afterwards after I send them?

00:49:58: That is for full purchase facilitation which we are not able at this moment.

00:50:04: Oh!

00:50:04: I see it.

00:50:05: The consulting route again its a lot cheaper, about one hundred ten thousand yen so about one thousand Canadian I think Because the reason that we can do it at any time, and we don't need to wait until our staffing issues are finished is because That's just me.

00:50:22: I don't have to involve any of our Japanese staffers.

00:50:25: So that hundred in ten thousand yen gets you a ten hour retainer?

00:50:29: That would normally suffice for me to handhold one single purchase.

00:50:33: And if only i mean i don't write down every minute i've Only ever had One client that was Just too picky and i had To charge them A second retainer.

00:50:43: but That's one out of about a hundred or more that I've consulted directly now over the last couple years.

00:50:50: So, i doubt that will be necessary.

00:50:52: so usually those ten hours we'll cover you for single purchase technically limited to inquiring on upto twenty listings and doing it deeper.

00:51:05: dive from ten listings

00:51:08: yeah

00:51:10: but again I haven't really reached that limit with anyone except one client so far.

00:51:16: Okay, interesting

00:51:19: and property management for post settlement.

00:51:23: the agent That will be helping you with purchase could potentially serve You directly as a property manager because again they do speak English And are used to working With non-resident foreigners.

00:51:35: if The new lady that we started is Not able to do that than the other guy.

00:51:40: That I've mentioned can definitely do that.

00:51:43: Okay, if for any reason at any point in time you're not satisfied with their services You can always loop us back in and then we'll put in place a more traditional Japanese property manager.

00:51:53: But in that case you need us Managing the managers for you because the more traditional ones will not be able to work with you directly.

00:52:02: Yeah, yeah.

00:52:03: I noticed that layer the property management and then you guys on top which for a total of seven point seven i think?

00:52:09: Seven point seven percent.

00:52:11: So they charge five point five percent.

00:52:13: normally it's not legally mandated like purchase Commissions but normally most of them charged five percent plus tax Which is five point Five.

00:52:21: We charge two percent plus Tax On Top Of That But we do have A Minimum And with The Property Budgeted You're Talking About I Think paying us the minimum, not the two point to which is a little bit higher.

00:52:35: So our minimum was one hour of work per month, which is four thousand four hundred yen.

00:52:41: Okay

00:52:43: if we come to that hopefully The agent will be able to serve you directly though You won't need the middleman.

00:52:48: but If We do Need To vet them out and put somebody else managing it in their place then That's what It's gonna Be.

00:52:55: And Then

00:52:56: They Charge

00:52:58: One or Two Months Of Rent Placement Fee When they Place A new tenant One month, if it's easy enough to find.

00:53:05: If its a difficult time of the year or you're asking for higher rent than comparable units Or any other reason something... The property has gone down in attractivity to tenants For whatever reasons.

00:53:16: Then they might need to share listing with other property managers In which case They'll also get one month.

00:53:21: So It is one or two months when placing new tenant

00:53:25: Right

00:53:26: And we are involved.

00:53:29: if we're doing the portfolio management on top of that then we charge half a month when that happens.

00:53:34: Right, yes I did read that.

00:53:35: okay

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00:54:36: Similar to most big cities in Japan if it's a single or let's say young couple without child kind of sized unit, which is Most at least the cash cows tend to be in that profile.

00:54:50: I'd say they again.

00:54:51: This is just statistical average but on average about four and a half years.

00:54:56: So for two five years Okay singles and young couples.

00:55:00: If it's family-sized property then they tend to stay in place longer seven eight years.

00:55:06: But those are usually, because they're bigger.

00:55:09: They tend to be lower on the yield.

00:55:12: and also you've got more to renovate between tenants cause we have a larger floor plan.

00:55:17: but I think your budget in big city like Fukuoka is not gonna buy family size unit anyway.

00:55:22: it's probably going to single or young couple sized.

00:55:26: Yeah looking at apartments looks like one bedroom kind of either single professional I would agree with that.

00:55:38: When we say professional, not always right?

00:55:41: There could be an elderly pensioner or shift worker entry level salaryman kind of situation.

00:55:48: there's all kinds

00:55:50: Right.

00:55:52: and then so you mentioned everything through you.

00:55:58: I have to sign over power of attorney, which makes sense to me.

00:56:01: but um i was curious

00:56:03: for the full purchase facilitation.

00:56:05: if we're just doing the consulting hand holding then there's no need for that because

00:56:16: comprehensive package thinking.

00:56:18: Is the power of attorney, is it time limited or like property specific?

00:56:23: Or are there any terms to that?

00:56:24: or just does it kind of carry

00:56:25: indefinitely?".

00:56:27: It's specific to matters related to property purchase and management only.

00:56:31: so we can't go in by a yacht in your name whatever right.

00:56:34: um...it's up-to you!

00:56:37: The expiry date is up to you.

00:56:39: if you don't want to go ahead and have to renew it every couple years then In which case, you'll need to notify us by email or in writing whenever you want to terminate our authority.

00:56:51: Which is what most of the clients do.

00:56:53: but if... If your prefer it put an expiry date then just have to renew when that expires.

00:56:58: Yeah okay!

00:57:01: That makes sense Let's see.

00:57:02: And any case its terminated with one month notice.

00:57:07: Okay gotcha.

00:57:09: Well thats more related to contract services not POA itself.

00:57:12: The POA is Terminatable Whenever You Tell Us It.

00:57:15: Yeah, a hundred percent.

00:57:17: Okay then I had a question about the twenty-ten rule but i think you already answered it...I was just curious what happens if you say our market is bad or your really picky?

00:57:28: What happens after the twenty listings are ten offers?

00:57:31: Is there an hourly rate of something that kicks in ?

00:57:35: If you're really picky ,i'll give some advance notice.

00:57:38: so its not going to be okay suddenly hitting with another bill.

00:57:44: and if we carry on like this, it's going to take a lot longer than you know.

00:57:48: firstly.

00:57:48: It's gonna Take A Lot Longer Than What You Expected Because Normally These Purchases Are Done Within A Few Months.

00:57:53: But In Your Case If You're Super Picky Might Take Longer.

00:57:56: Um but How It Works So?

00:57:59: If Its Full Purchase Facilitation Then Yes We Will Go Beyond That With An Hourly Charge.

00:58:09: If It'S Me Doing The Consulting just a second retainer.

00:58:12: So another hundred and ten thousand yen, uh...and then we'll carry on.

00:58:17: Okay what's the hourly rate if you're doing the full package?

00:58:23: If-if we go beyond..you mean that the fixed price?

00:58:27: Uh wow!

00:58:28: We've never had that happen yet.

00:58:31: um okay our hourly rate for management purposes is same four thousand four hundred yen in matters that would require myself or my partner, like executive level to be involved and it's eight thousand eight hundred yen.

00:58:47: but again we've never gone down the path with any client I doubt will get there.

00:58:52: Okay yeah i was just curious asking for information um... And then had another question about tax threshold?

00:59:01: By the way market being really bad means Providing you with listings.

00:59:07: It doesn't mean that we're digging into more listing So it'll just take time to get suitable listings, but That's not gonna count against against that retainer or anything.

00:59:17: Yeah fair okay Um so yeah to go the tax threshold comment.

00:59:23: um do you mind?

00:59:23: Just explaining to me The three-year limit thing I didn't quite understand.

00:59:28: Like it sounds like I don't have to pay Japanese income tax for three years.

00:59:32: Oh, so you as an individual purchasing a property in Japan You can carry your purchase costs forward and claim them as losses For three years.

00:59:43: if you were buying is accompanied would've been five or six years from memory But as an individuals.

00:59:49: It's three years.

00:59:49: So for the first few years their accountant will work out.

00:59:54: There's a couple of ways in which they can factor in depreciation and purchase costs management cost, so They'll choose the most suitable way to carry those Expenses forward for the entire three-year period.

01:00:07: So that you will be paying very little or no tax.

01:00:10: But it depends on how much the property is making?

01:00:13: If we take for example ten and half well The total purchase was about worst case.

01:00:21: twelve million yen typically would get up to five percent before tax on that.

01:00:28: So, that's six hundred thousand yen.

01:00:32: the reporting threshold is three hundred and eighty-five thousand yen from memory but that's before we factored in all of these purchasing management costs.

01:00:45: so definitely for the first years you'll be very close And beyond those three years, you're going to be at the five percent on every end.

01:00:58: Beyond the three eighty-five.

01:01:00: so even after the three years if that's The only property are gonna have it is very low taxes.

01:01:06: Yeah for least It will like this.

01:01:08: This Is my first way To break into the market and So yeah I anticipate the yield being Very low For the first little bit.

01:01:16: Yeah, I mean as you're if and when your portfolio goes let's say over the next decade You decide to purchase more properties.

01:01:23: When you get To the level where your total asset value is getting close too?

01:01:28: Let's say Half a million us or six seven hundred thousand US.

01:01:34: then it might be A good idea to start talking to the accountant about potential corporate ownership so you can claim More stuff carry losses forward more And also corporate taxes is capped, whereas individual income tax keeps going upwards a little bit further.

01:01:50: So beyond that point it might make more sense to have the conversation.

01:01:54: but before that taxes in Japan are pretty low.

01:01:57: Before that individual ownership probably works best.

01:02:00: Yeah, okay.

01:02:01: Do you know if that behaves any differently?

01:02:02: Because one of my the biggest thorns in my side is The fact I can't open a Japanese bank account to take in the rent money or anything like That.

01:02:10: so If a corporation buys the property instead does that change the way?

01:02:15: i have To Have A Bank Account Or Anything Like That?

01:02:19: You don't have two.

01:02:20: So we do have clients who own properties as Forum Corporations that are not Incorporated In Japan and then it Works Exactly The Same Way.

01:02:30: And you could potentially, if you do have a company in Japan.

01:02:33: You could potentially open a bank account but to do that... ...you'd need to nominate Japanese resident as your CEO which adds another I don't know two three hundred bucks a month to the corporate upkeep and also corporate up keep itself.

01:02:47: i mean setting up the company is a few thousand bucks and accounting and bookkeeping Goes from a few hundred bucks a year to a few thousand bucks here as well.

01:02:56: So again, it doesn't really make sense before you reach that threshold the half-a-million US one.

01:03:03: Yeah okay no problem and I already actually do have an incorporation incorporated company over here.

01:03:08: Okay

01:03:09: so yeah maybe down the line i'll investigate using that as a means to purchase To think but anyway I'll have to think about that.

01:03:16: You can, but again the accountant will be charging something like two thousand bucks a year as opposed to a few hundred bucks if they need to handle bookkeeping and accounting for a corporation.

01:03:27: Okay okay i'll keep that in mind.

01:03:30: um...I'm just looking at the other questions I have here But I think we've answered anything.

01:03:40: so is there anything you'd like to talk?

01:03:42: Oh,

01:03:45: no.

01:03:45: We're just.

01:03:46: I'm happy to record these calls because they bring value the people in similar situation.

01:03:50: i think we usually have a lot more chewing and throwing in discussion of nuances when we actually look at listings.

01:03:56: so then will start mentioning...I don't know this one is great unit yield-wise but it's ground floor.

01:04:03: So the units are viewable from the streets or single females might not like This.

01:04:11: one is third floor without an elevator.

01:04:13: So elderly tenants might not like it, this ones a corner unit.

01:04:16: It's nicer but so there'll be lot more conversation and strategizing when we actually look at individual listings.

01:04:22: But the basics I think We've probably covered here.

01:04:27: Yeah i think so as well.

01:04:28: um yeah this was very helpful to me To sort of understand what my options are in terms Of Like The Full Comprehensive Package Where Everything Is Done Or Just Like Holding My Hand Through The Process.

01:04:41: But both work.

01:04:43: The full comprehensive one is A, pricier and B not available for the next few months at least.

01:04:50: Yeah exactly I kind of think i want to buy now.

01:04:54: Look the consulting that we've been doing since last couple years.

01:05:00: It's really our growing pains that haven't properly factored in advance.

01:05:06: Do you do that?

01:05:06: I've been doing it the last couple of years.

01:05:08: People seem to be pretty happy with it, but I haven't had any complaints yet.

01:05:11: Yeah Okay yeah It's just like.

01:05:15: so a little bit about my story.

01:05:17: i've decided Last year...I love Japan So much!

01:05:20: I want To come by property and even if I'm not living in it myself.. ..I Want to have it so That maybe I'll take one day.

01:05:27: Um, so I saved up for a year.

01:05:30: I diverted some of my investments to grow particularly quickly So that i had this hundred thousand uh.

01:05:36: canadian dollar limit um To work with and i'm just really excited to have A place in the place that i love even if i'm not getting too experienced at myself Right away.

01:05:48: oh you can claim the trips here as business expenses.

01:05:50: That's something

01:05:53: I didn't know.

01:05:54: that, okay.

01:05:55: You're coming

01:05:55: to check on your portfolio.

01:05:56: what do you mean?

01:05:57: Oh yeah and i just happened to make a stop in Hiroshima for like three days.

01:06:01: is why?

01:06:02: well then you looking at the future investment potentials Just bear in mind That To Use The Property Yourself The Laws Here Again Are Very Tenant Oriented.

01:06:13: so if you don't want the leases are Basically Renewed Automatically Every Two Years And We don't raise the rent much.

01:06:21: I mean, we can try but if the economy doesn't do super well and salaries don't go up which has been the case for a long time then the tenant will just move out.

01:06:29: And If you want not to renew the lease It's best to offer them compensation To the tune of something like six or ten months of rent Which is what it costs them to move.

01:06:40: Otherwise they have legal leg to stand on.

01:06:45: not that Japanese tenants would never take you to court, at least they haven't.

01:06:49: We've never run across a case like that.

01:06:51: but A it's the right thing to do because its very expensive for them move in Japan.

01:06:55: and B To avoid any potential trouble You want to wait until six months before the lease expires?

01:07:03: Send him a letter.

01:07:04: let them know That he will be taking ownership of the property And immediately offer compensation.

01:07:09: So then they'll move out quietly.

01:07:14: timeframe for landlords to do that here in Canada is a lot shorter, and they don't offer you compensation.

01:07:20: I can tell you that!

01:07:21: Yeah... And they have no problem asking you leave or renewing the lease either.

01:07:26: but potentially legally again it hasn't happened with us.

01:07:29: But potentially legally they might be able to stand on if we don't like it.

01:07:39: Normally, our clients in situations similar to yourself would wait for the property to be vacant and then take a six-month holiday here kind of thing.

01:07:47: Yeah I feel like that's what it is but good to know.

01:07:50: thank you!

01:07:51: Sure

01:07:53: all right.

01:07:54: well i think i will take this information away and give it a little.

01:07:57: think

01:08:02: Sounds good.

01:08:02: You can let when you want to move forward, just let Hannah who replied your emails know and she'll give me my WhatsApp number.

01:08:09: Just add me on what's up?

01:08:10: And I'm a lot more responsive there than an email.

01:08:13: Okay perfect, and i'm at night owl.

01:08:14: so be messaging you midday almost every day.

01:08:17: I Can't even keep track of each client in their time zone.

01:08:21: the messages come In twenty four seven and I reply to them whenever I can.

01:08:25: don't feel.

01:08:27: Um, don't feel like you shouldn't be messaging me at night in Japan or at night your time.

01:08:32: I'll just...I'll see them when i see them.

01:08:34: Okay sounds good

01:08:36: All right.

01:08:37: Thank You for Your help today!

01:08:39: Pleasure

01:08:40: Bye for now.

01:08:42: So there you have it two first-time buyers Two very different sets of goals criteria and

01:08:46: questions

01:08:47: Which I hope shed some light on the type Of things that we look At When We Help People Purchase Here And What YOU Might Want To Be Paying Attention to If You're Doing This On Your Own.

01:08:56: Now, we can't let you go without telling me about MailMate.

01:08:58: Our sponsors and business partners.

01:09:00: they offer peace of mind for your property in Japan.

01:09:03: They'll make sure that your taxes to utility bills are all paid on time liais with your management company For you or assist with your parcel delivery

01:09:11: while you're out-of-town.

01:09:12: get in touch With them on mailmate dot.

01:09:15: JP.

01:09:16: today I mentioned the japan real estate podcast.

01:09:18: four ten percent off your first year And that's it from us for this episode, folks.

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