00:00:00: I don't know, like ignorance.

00:00:02: Not to be accusatory but folks who don't speak Japanese or aren't familiar with the real estate landscape and cultural landscape or whatever, kind of just give it a nebulous term of Akiya and Studio Ghibli.

00:00:16: you know, dream about it a bunch?

00:00:21: Well international media kind of is at least partly if not mainly to blame.

00:00:25: Like even myself when I started dealing with them which was about ten years ago and we don't do anything near the amount that you do but... ...I walked into this million-dollar mansion above The Philosopher's Stone in central Kyoto And the agent is like so.

00:00:38: this became an Akiya about eight months ago.

00:00:40: This isn't Anakia really!

00:00:41: Yeah

00:00:58: Either folks and welcome or welcome back to Nippon Trading International's Japan Real Estate Podcast.

00:01:03: I'm your host, Ziv Nakajima again And this podcast is brought you among others by Emil Gorgies of realestate.jp.

00:01:11: He's a Tokyo real estate agent who specializes in serving international or mixed nationality families Who are looking for the perfect family home.

00:01:19: So Emile is an Australian, he's been living here in Japan for over two decades now and about half of that time has been buying selling and managing real estate properties.

00:01:27: In Tokyo on behalf his own family and the great many happy clients And also acts as a mortgage broker.

00:01:34: so he got dedicated loan officers 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.

00:01:46: Which means that your all ready aware of fact That the man is an absolute fountain Of wisdom on all things related to real estate in japan and In particular to family homes ,the greater Tokyo metropolitan area and mortgages.

00:01:59: 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.

00:02:07: So If u've been thinking about buying your home in Tokyo, but you've been sitting on the fence for a while or that we recorded with the entire panel minus Blanka, who sadly couldn't make it that day.

00:02:34: And in it... We hear from Tracy a bit about the history of Minpaku private lodging or vacation rentals as they're known elsewhere.

00:02:42: ...we hear what the term Akia actually means and how its used from Matt, and we receive an interest rates update from Emil.

00:02:50: We also discussed the theoretical potential restrictions that have been in the media potentially to be levied on non-resident property purchases... ...and Japan's post World War II history how that might affect the diet's ability to impose those.. ..we debunked a myth some people still had regarding buying property here could potentially help with residency, a few other myths while we're out there debunking.

00:03:18: and the so-called new requirement to disclose or record non-resident buyer nationalities and residencies.

00:03:25: Spoiler alert it isn't exactly new!

00:03:28: And finally... We end with a bit of Men's World Cup banter although considering that one has already ended as of publishing this episode That part might seem outdated.

00:03:37: but what the hell I left in here?

00:03:40: Pretty informative mix of current and historical information for you there.

00:03:44: Enjoy the conversation, And I'll see again on.

00:04:00: Do you want to start?

00:04:08: I got Matt over here, Emil and Tracy down there.

00:04:12: On my screen i'm stacking like four of us like this one two three four

00:04:17: we don't know where we are.

00:04:18: okay.

00:04:20: um Emil all right.

00:04:23: uh i am Emil a real estate agent in Tokyo.

00:04:28: i help foreign families buy a home Over to you.

00:04:34: Well, yes I do a couple of things specifically for this podcast.

00:04:40: i'm involved in short-term rentals so Minpaku.

00:04:42: So I run a property management?

00:04:44: Um, I'm a licensed property manager.

00:04:48: Talk about everything!

00:04:48: I'm going to talk about what I do as well against some exciting news.

00:04:51: Yeah

00:04:52: Oh good oh that's it...so..I am a licensed Property Manager For Short Term Rentals Which is different from Regular Real Estate Property Management.

00:05:00: Anything That Is Furnished.

00:05:02: um is my kind of wheelhouse and I do short stays.

00:05:06: so i've got real car licenses for some of my properties or mimpaku licenses.

00:05:12: And, I also did some service departments for corporate stays!

00:05:16: Um...I also work with people who are coming like have properties and live abroad, perhaps.

00:05:24: And need someone to manage an optimize their properties while they're here?

00:05:28: Well there away sorry!

00:05:30: They get use their own property when in town but let me look after it make some money for everybody.

00:05:38: so we love us the money.

00:05:42: The other thing I do is I help people understand the Japanese market for short-term rentals because whatever you think about like in, let's say... The Airbnb world abroad throw it all out of window before landing Japan.

00:05:59: It is very different!

00:06:04: You can't just buy something and chuck up on AirBnb and call today?

00:06:07: No!

00:06:09: And i talk a bit more how that works here.

00:06:14: Another hat that I wear is an engineer for applications, language learning.

00:06:24: That's why I came to Japan initially so i've got like thirty dictionary apps on the App Store and Android store And thats kind of passive these days.

00:06:33: it lets us play in real estate which is something I love too do as well.

00:06:40: For people who aren't familiar with the terms, you mentioned minpaku and yokan.

00:06:45: Yes so Minpaku is a well I can give you the kanji definition of that like where it's come...where the word has come from?

00:06:53: um It's uh it's a new word that came in to lexicon as a dictionary maker, I'll tell you.

00:07:02: Because there was no law and because all this home rentals is kind of the new idea globally in a way.

00:07:12: so they had to sort make up a new word.

00:07:15: So Minpaku's catch-all for renting a house or unit that not hotel.

00:07:25: And I guess in other places it's called vacation rentals.

00:07:29: In other places, you know people use the generic Airbnb term... ...I have an airbnb host which is The Hill i'm going to die on!

00:07:42: But Ryokan is a Japanese word for inn and there Simple Inns, which are hotels.

00:07:52: So that's for anything That is available for rent three hundred and sixty five days a year And you can do that for a single room.

00:08:02: But there is also category of Lyokan Which as your standard front desk You know.

00:08:08: twenty four hour twenty-four our hotel style.

00:08:11: so in Japan There's everything in between.

00:08:15: And then there's Western hotels as well.

00:08:17: But I'm normally in that, you know, vacation rental space for a simple lodging.

00:08:24: it is the translation of.

00:08:26: Hmm?

00:08:27: Does that...

00:08:28: Thank you!

00:08:29: Yeah

00:08:30: no, but if need more information i explain everything very clearly on my blog.

00:08:36: Yeah Tracy Northcott sit down there.

00:08:39: yeah all right.

00:08:40: and Matt

00:08:42: A fun side note, when I believe first met Tracy it turns out that she has worked with an academic called Jim Bream.

00:08:50: Yes i do!

00:08:51: Right?

00:08:52: Who...when I was like a younger man and beginning my studies of Japanese like Jim Breen was the person to go too.

00:09:02: And when Tracy first mentioned Jim You know

00:09:05: way like

00:09:06: what?

00:09:07: Yeah,

00:09:07: we edit it half of his dictionary.

00:09:09: So my brother is actually a language nerd and helped... Like did a lot of collaborations with Jim back in the day.

00:09:17: I

00:09:19: gotta say now that Matt visited us i'm so impressed with his Japanese..I always pictured him as a hundred percent English speaker guy who just knows some Akiya terms in japanese but he's bloody fluent

00:09:31: more than me.

00:09:33: Yeah, it's funny especially having like... So hi I'm Matt!

00:09:38: I speak Japanese.

00:09:43: Especially in Japanese if i'm at the event or bar whatever and

00:09:47: you know they'll

00:09:48: just start speaking English.

00:09:51: so then we speak english for an hour.

00:09:53: however long days even multiple times suddenly will be a japanese situation be like, oh okay.

00:10:01: Japanese let's do it and everybody kind of does a double take.

00:10:04: is what's going on here?

00:10:05: Like you didn't tell me yeah because we were speaking in English so why would I... Anyway i'm Matt I do Akiya and rural real estate due diligence portfolio curation planning strategy.

00:10:19: really I think there was kind of a good phrase.

00:10:21: for now.

00:10:22: um I work with licensed real estate agents that don't pretend to.

00:10:28: And yeah, I'm kind of the adventurer.

00:10:29: Well we're all adventurers in our own wonderful ways.

00:10:31: But if you really want to get out into the weird and the stick Into the weeds maybe And explore more Yeah kind of adventurous things Lifestyle more than financial investments side-to-side things then i'm your guy calm and well.

00:10:56: yeah akias.com aka i y a am I spelling it right?

00:11:02: so

00:11:02: far you were

00:11:04: yes don't second guess yourself just commit.

00:11:07: uh dot com do you think

00:11:11: that the definition if we're defining things, Do You Think That The Definition Of Akiyas Has Expanded?

00:11:17: There's Again What People Imagine Akiya To Be And Then The Whole Range of What Is Out There From Like the trash to you know recently vacated.

00:11:28: Oh, where do you sit?

00:11:30: Where do you feel

00:11:31: now?

00:11:31: if your actively looking at property in Japan You should check out Akia Mart?

00:11:36: that's a K I Y A. It's the Zillow of Japan, built for buyers who are actively hunting for a home in Japan and want much more western style web browsing experience than typical local Japanese websites.

00:11:52: Now we've got an exclusive thirty percent off promo code.

00:11:58: That's the one that gives you full access to Airbnb zoning maps, hazard maps sold data and over half a million listings nationwide at any given time.

00:12:06: So if you're serious about buying in Japan and want an easier way to search this is The best tool we know of.

00:12:13: so You can use my code ZIV at checkout And get thirty percent off your Akiyama Art Pro annual plan At akiamart dot com.

00:12:25: Yeah,

00:12:27: maybe you've read it.

00:12:29: There's like a really big bifurcation of linguistic bifurecation of what Akiya even is.

00:12:34: The Anglosphere has kind-of taken and run with the arguments that I have had on Reddit about the definition of Akia And i always win them!

00:12:46: Make no mistake!

00:12:49: Dude everybody knows everything.

00:12:51: It's impossible.

00:12:53: The Anglesphere really a kind of painted its own picture, very colorful picture what Akiya can be.

00:13:04: Some people think it's like Nagaya.

00:13:06: other People thinks that it is Machia.

00:13:09: actually machia Is just kind of a Kyoto area designation of Anakia or an order so It isn't even really a designation.

00:13:17: So there are all these ling-ulis I don't know ignorance not to be accusatory but Folks don't speak Japanese or haven't aren't familiar with the real estate landscape of cultural landscape, whatever.

00:13:32: And it is here that nebulous term like Akia and Studio Ghibli and like gated or what ever.

00:13:39: um...and just like you know dream about it a bunch?

00:13:42: Well international media kind as at least partly if not mainly to blame even myself.

00:13:48: when I started dealing with them which was ten years ago we didn't do anything new.

00:13:52: but I walked into this million-dollar mansion above the Philosopher's Stone in central Kyoto and the agent is like, so this became an Akiyama about eight months ago.

00:14:01: This was a Akiyan

00:14:09: really?

00:14:09: Yeah yeah... And we have that in Tokyo too right?

00:14:11: The Akiyang means empty and house.

00:14:14: it's the kanji for but has sort of two meanings where when we go to show a property, once the tenant has vacated it like there's two conditions.

00:14:27: kyojutsu means is currently tenanted.

00:14:29: It's occupied.

00:14:31: The other version of that non-occupied Is Akiya Empty Property and also Akiyya with the same empty house kanji.

00:14:41: but

00:14:41: the term Akia I think the Western media and that we talked about sort of these cheaper properties or this like, um...I Think for me.

00:14:49: The big definition is it's more like unmanaged not just unoccupied but unmanage.

00:14:54: So if i just move out of my house And then its empty and im trying to sell It Their term Is Akiya Like the word.

00:15:02: current status is Akiyya because Its Empty Housing But That Is Different To The Actual Akiyah Definition.

00:15:08: When We Talk About Akiah Bank What The Government Runs?

00:15:11: Its More Unmanaged?

00:15:14: Well, I'm attended

00:15:16: to

00:15:17: yeah.

00:15:17: Yeah this brings up a really good point that i'm just realizing now maybe is the.

00:15:25: The Japanese version of the japanese word Akiya is surprise very japanese.

00:15:33: And by that?

00:15:33: I mean it's extremely contextual.

00:15:36: and so if you point at an elapidated dumpster fire and say oh That's Anakia Then that will translate like, oh it's that Akia right?

00:15:45: But if you point at the million dollar condo Akia over there.

00:15:50: There is also that and so not a very well established or streamlined kind of public definition.

00:15:58: And especially actually from an official documentation point-of view as well That definition doesn't really exist.

00:16:05: I mean The definition but its very nebulous.

00:16:07: It can apply to whole bunch things.

00:16:09: So Its Not Very Precise which is weird because in the Anglosphere, it's gotten very precise except its wrong.

00:16:22: Definitely I agree to that.

00:16:23: There are some areas though there're some regions and say like to be classified into akiyabank.

00:16:28: To go into the akibank they must meet some conditions And one of them is yeah It you know?

00:16:32: Its not managed just sort left unattended so weeds can overgrow If he isn't someone who has regularly taken care and making sure that it is in good condition, even though its vacated or there's no someone actively trying to sell it.

00:16:48: And take care of it in the meantime.

00:16:50: So some regions do have that parity.

00:16:54: so thats a definition I go by when i see Akia as not a vacant property.

00:16:59: The term akia is rather an unmanaged unkept property.

00:17:05: if nobody takes care If it just stays as is, It's going to sort of become dilapidated and overgrown.

00:17:14: Abandoned wear of houses?

00:17:17: Yes so Matt specializes in that.

00:17:20: the latter words.

00:17:21: The abandoned wear... Of houses

00:17:24: here!

00:17:24: Ziv how about you mate?

00:17:27: Me I am the catch-all.

00:17:31: i'm the host of the Japan Real Estate podcast And we provide consulting facilitation services and referral services for anyone doing anything related to real estate in Japan.

00:17:41: So we work with professionals like these three pint people over there or down there, wherever you're looking from and a whole host of hundreds more traditional Japanese real-estate professionals.

00:17:54: that would not be as approachable as fine folks normally And basically do one of two things.

00:18:03: We either Do everything on your behalf Which means that you just need to give us legal authority To act in Japan on your behalf and then we'll be a single point of contact In English, And will make sure That everything is done for You whether it's purchase management or sale.

00:18:18: Or We can Act as consultants which Means that Will connect you with vetted professionals Again like these fine people or Other bilingual Japanese Professionals Who will serve you For the logistics part Of work Because A lot of them are not like Emil, for instance who is holding your hand and giving you strategic advice from day one.

00:18:41: We also provide consulting so typical Japanese real estate professional is a hundred percent honest and by the book, transparent.

00:18:49: Everything has paper trail to the moon back.

00:18:51: you will end up with title deed in your hand.

00:18:53: it'll be legal but they're not normally going to be strategic about that so they won't help prioritize due diligence tell what questions ask or look out for in official documentation.

00:19:05: we can join as consultants hold their hands guide all of those process on our behalf work directly with real estate professionals.

00:19:13: like Tracy I do other things too.

00:19:16: I've got another company that helps people invest in other things in Japan, so set up their own business or purchase an existing business.

00:19:24: Or partner with the Japanese business as well as relocate to Japan.

00:19:28: So a lot of M&A operations and a lot relocation logistic support and recently also an online retailer.

00:19:36: Our website is up, we will be soon selling imported products in Japan to the Japanese crowd.

00:19:42: so not probably as interesting for viewers of this podcast.

00:19:47: unless you have a very interesting foreign product that might be value-to-the-Japanese market We can definitely chat about it.

00:19:55: I think

00:19:55: we hit.

00:19:56: yes please tell us one point zero.

00:20:05: it's big in my world um and the awesome?

00:20:08: yeah i don't think it does impact the industry

00:20:11: overall.

00:20:12: One

00:20:12: point zero percent for home loans?

00:20:16: Oh no, so the central bank, Bank of Japan increase their... Rates, you know used to be sort of negative and then zero within over the past few months been going up about point two five point five point seven fire.

00:20:28: And then just was it yesterday?

00:20:30: I'm point.

00:20:31: So one point zero.

00:20:32: so twenty-five basis points that went up.

00:20:35: So You'll expect Home loans too increase as well over the maybe next three months or so most.

00:20:43: but in a

00:20:43: current

00:20:44: set on About one like zero.

00:20:47: point nine to one.

00:20:50: point two is what most of the variable rates and the fixed-term rate are like about two point five percent.

00:20:59: Are U.S viewers now?

00:21:02: It's strange because for me, you know .

00:21:05: six used to be expensive.

00:21:07: yeah you know points

00:21:08: right just

00:21:10: way too but it was quick like expensive.

00:21:12: so really like interest rates have doubled from my perspective and anything like with a one, like an integer in front of it is ridiculous.

00:21:22: It's ridiculous but the definitely strange.

00:21:26: my loans in Australia which they're five six seven percent I only speak in the whole numbers that decimal no longer matters.

00:21:33: whereas in Japan people was zero point nine five down as one point one five.

00:21:40: oh

00:21:41: maybe i should hold out.

00:21:44: Waiting to see what like you know, oh and that's too high now is a bit as if it's Strange because they're still.

00:21:50: I go in baby.

00:21:51: You know UK also yet.

00:21:53: I'm buying something there instead.

00:21:55: I'm wondering in your opinion?

00:21:57: I know you're you know you know macroeconomics professor II expect you to not do no Not commit to any opinion on that.

00:22:05: but I know that the banks, like if you look at the Fed in the US normally and there's a whole argument about it now.

00:22:12: It should be an independent thing.

00:22:14: That's not related but Japan central bank tends to be a little bit more.

00:22:19: Let let say You know influenced by government Yeah?

00:22:24: I'm wondering do you think that actually has anything to do with japan's economic situation overall or is that like kind of gentle guidance from the government?

00:22:36: Yeah, I can't answer that with any sort of authority or clarity on confidence.

00:22:41: But a lot of the inflationary pressure is from The War Right Now and resources in oil.

00:22:50: That said there are comments where they do think that resources There's not much more risk now to the economy.

00:23:01: They have security enough for resources in terms of oil to get through this next stage until hopefully the strait is opened and there's more flow of oil coming through.

00:23:16: So it sounds like they're not really considering increasing again soon, that comfortable where its at with what the comments suggested or what I was reading yesterday.

00:23:28: so what happens in the future?

00:23:30: don't know...I was talking the yen may still go up to, yeah it's one sixty now.

00:23:37: One hundred and sixty into the dollar make up to one seventy-one eighty different opinions.

00:23:41: some people like that even though I'm wondering

00:23:44: okay because i am thinking more about the past than the future nobody knows.

00:23:47: but i'm thinking more About The Past Like they started raising rates a couple of years ago And I didn't see That correspond with A huge you know GDP stabilizing or growing Or anything Of that sort.

00:23:58: so I'm Wondering what is behind It as a trend?

00:24:02: Yeah, it's trying to slow down inflation.

00:24:03: but a lot of the inflation now isn't from economic domestic economic Excitement.

00:24:11: It's from external pressures which are increasing the cost of imports

00:24:15: and stuff.

00:24:16: yeah

00:24:16: And yeah, you know larger than fuel in the low shade below yen.

00:24:22: So it's not like try.

00:24:23: is not that economies overheating?

00:24:25: they're trying to slowly?

00:24:25: No, that's not the face.

00:24:28: It's

00:24:28: supply chain

00:24:28: issues right?

00:24:30: Correct.

00:24:31: yeah so they can't go too heavy on increasing rates.

00:24:34: especially and I've said it many times there are so many companies in Japan small mom-and-pop shops SMEs that rely on this low interest rate funding for regular operations of their business.

00:24:46: So increase in the rates to double is significant.

00:24:51: significantly impact impacts most of these small businesses and the majority of companies in Japan are SMEs.

00:25:00: It's

00:25:02: like ninety-nine percent, yeah.

00:25:04: Oh you mean those businesses that would never be able to afford the thirty million in capital.

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00:26:04: I'm wondering, oh sorry go ahead Tracy.

00:26:07: I was

00:26:07: going to say like talking the talking interest rates...like talking to my mum about interest rates and she is like going because she's a boomer right?

00:26:15: And she's uh..she's like.

00:26:18: Oh Amitabh we survived eighteen you know eighteen ninety percent for home loans!

00:26:24: They had multiple properties uh at the time.

00:26:27: so they just said amateurs.

00:26:30: you know we dealt with that like, We got through it and That's why all these boomers are like.

00:26:36: They're getting a lot of criticism for um The wealth gap And its just like Dude!

00:26:45: We did it super tough.

00:26:47: It is really interesting conversation to have being in this sandwich being in the sandwich generation of, you know... The Gen Zers who just like really their home loans and real estate are out of just the pricing to get into it is beyond them.

00:27:07: Oh!

00:27:07: The boomers went through some shit?

00:27:09: I respect that.

00:27:10: sorry shouldn't curse on me.

00:27:11: Hey,

00:27:13: watch your language.

00:27:15: It's like a friend Gary V said it's generation that has never been punched in the face

00:27:21: right?

00:27:23: But I'm wondering if we are talking government policies.

00:27:28: there have really since ever since the new government came in and we've been feeling it in the market because people are hesitant to purchase.

00:27:36: And there's been talk about implementing some cooling measures, I don't know that we need cooling measure except maybe central Tokyo or Niseko.

00:27:43: but There has been talked about implementing something cooling measures of somehow preventing Or making a bit more challenging or expensive for non-resident foreigners To buy property.

00:27:58: I haven't seen anything concrete come in except the requirement to disclose, but

00:28:05: do you have any thoughts

00:28:07: on

00:28:07: that?

00:28:08: That should totally be a thing.

00:28:11: More question than thought.

00:28:13: going back to my conversations about Akia as well news stories it's kind of everywhere.

00:28:19: Pat

00:28:20: i'm sure we've all heard somebody talk You can get a visa if you just buy property, but I've never actually Heard of somebody who thought that was the case and bought it But then didn't get it like.

00:28:39: I kind of feel Like that's a bit of an urban legend.

00:28:42: That people

00:28:43: hopefully their immigration lawyers explained.

00:28:45: Why

00:28:45: would why wouldn't he be so dumb to know?

00:28:51: It's a legit assumption.

00:28:54: A lot countries in the world do provide that right.

00:28:57: Right, right.

00:28:58: I mean a few...

00:29:02: The other thing that people are most surprised about is they don't need a visa to buy anything here.

00:29:11: Yeah!

00:29:12: That's the other end of that scale.

00:29:16: In a lot of countries you have to sort-of deal with someone who's in local, and then there are all sorts of problems about people being shafted by criminals.

00:29:28: But here in Japan you do not need a visa to buy anything or any sort... You can just buy whatever you like but you may not get finance.

00:29:37: The only country on Asia-Pacific that allows it actually yeah?

00:29:40: Yeah!

00:29:41: It will not guarantee your visa at work today.

00:29:45: Whether comes from those.

00:29:46: so I find when people come they have certain view real estate or immigration as well, it's from the perspective that they've got either from their home country.

00:29:56: Or another country to engage with and I think oh this is a rule about this.

00:30:01: so maybe It's the same in his country of our country.

00:30:04: So do one about these days there are countries that you know investing in real estate.

00:30:09: There gives you a visa Right certain amount?

00:30:14: That's where comes from.

00:30:15: And he needs just say we'll actually in Japan.

00:30:17: We don't have.

00:30:19: We don't have one where you can just buy real estate and then get a visa for it.

00:30:24: So, It's not from nothing!

00:30:26: There are some countries that allow...

00:30:27: No no my question is the rumors or comments seem to suggest there're number of people who made purchases with an assumption they'll get a Visa and post-purchase figure out.

00:30:43: oh my god theres no Visa attached.

00:30:45: I've never actually encountered or met anybody who knows, like there's no word of mouth confirmation.

00:30:53: I assume

00:30:53: they'd be pretty embarrassed to

00:30:56: admit it

00:30:57: publicly that they haven't checked out?

00:31:01: People people...that i come across.

00:31:04: um..I think this they're realizing that you know starting up a business in what I do in Mimpaku isn't gonna get you a visa either

00:31:15: Beyond a certain extent of the business, like if you're from get go buying your hotel at night.

00:31:21: That's different story.

00:31:22: but just doing a Minpaku Business doesn't necessarily... You've got to have other things on your planned business activities To Get Your Business Management.

00:31:35: I've got two clients who bought have set up their companies, and got the business management visa.

00:31:42: And yeah, Mimpaku is there only business but they had to show other plans as well.

00:31:49: so...

00:31:50: This what happens when you just google research and don't consult!

00:31:57: Yes.

00:31:59: Free information

00:32:00: from the internet is worth everything you paid for

00:32:03: it, so... I mean

00:32:04: that's actually a very good point of if you're relying on Reddit which sometimes can be a good source of information but other times-

00:32:10: If going to

00:32:11: the Internet at least go do in place like this right?

00:32:14: Like not Reddit!

00:32:15: Japan real estate podcast.

00:32:17: no anywhere on the internet.

00:32:19: just

00:32:19: go to

00:32:20: where experts gather and speak.

00:32:22: we do.

00:32:25: Can I touch on actually the other points that Matt sort of mentioned about foreign ownership?

00:32:29: And now and what ZP started discussion on is, you know can foreigners even own?

00:32:34: it's going to be sort of tightening in restrictions on that or increasing costs.

00:32:37: So one yes Foreigners can own without any restriction having never been stepped into Japan.

00:32:46: You buy a real estate.

00:32:47: yeah Yeah, and its completely legal.

00:32:51: What they're talking about now?

00:32:54: I don't think there's been lots of posts and fear tactics about.

00:32:59: they're going to tighten up, and foreigners can no longer own or something like that.

00:33:03: That's not the case.

00:33:05: And I don' t think it is actually gonna be the case at all.

00:33:07: I do nt think legally even implement it.

00:33:10: however what we are talking now when you purchase property and register your name on a title There will also be requirements for nationality Well, which they don't have now and the bigger region reason for that isn't just foreign is a buying up.

00:33:31: I want to push back on because from day one pretty much we've been at it for fifteen years At least one or two years into the business.

00:33:41: One more savvy, foreigner-friendly Shihoshoshi judicial scrivener or property lawyer that we worked with told us that hey you got a report to the Bank of Japan whenever a foreigner buys a property.

00:33:53: They're not enforcing it but legally you do have to do it and a lot of the agents that we work with were not aware of that.

00:33:59: so we started doing that over twelve thirteen years ago because as far as we knew there was the legal requirement all along.

00:34:06: I think maybe just enforcement is now kicked in?

00:34:11: No, no.

00:34:11: So not even that it's what they want to do.

00:34:14: is on like right now there's no formal Like when you okay?

00:34:19: What I changed a while ago was if your non-residents leave these are natural title so in Japan.

00:34:23: You can go to the Ministry of Affairs and The I'm almost sure and pull up a title for any property In Japan And this is the history of the property everyone has owned at all the mortgage liens That have been on it and the current owner.

00:34:35: Yeah

00:34:35: Now what they impose a little while ago Was If you aren't non residents And in regards to nationality, even a Japanese who doesn't have the residency in Japan needs to put it local contact.

00:34:49: But that is optional.

00:34:51: they can say...

00:34:51: Yeah no not talking

00:34:53: about that but there's reporting to

00:34:55: the Bank of Japan.

00:34:56: I'm talking about reporting to The Bank Of Japan.

00:34:58: So well I need to clarify because why would Okay hold on before we go into that In the title?

00:35:04: now when the title They've actually I added a new section where they put for non-residents.

00:35:10: Who is the local resident contact?

00:35:13: Yeah, right there's.

00:35:14: so that created in your line for them and now what They want to do you create another line item from nationality.

00:35:21: Yep Right What isn't actually?

00:35:23: because then when a formal record of who all the owners are and the concern Isn't about foreigners owning too much property in Tokyo And raising prices and things like that That's not the reason for it.

00:35:34: It's four foreign.

00:35:36: if Foreigners, a foreign entity starts buying up strategic land either agricultural or around nuclear sites.

00:35:44: Or other sort of military sites it's for government security and national security reasons is really the bigger concern.

00:35:51: people I think have been taken as

00:35:53: oh

00:35:54: they trying to stop me from buying locally all they want.

00:35:57: impose attacks on foreigners.

00:36:01: that's not actually be intent and I don't even think it will be really possible to execute that, because from what i've read Japan when they just after the war uh they entered free trade agreements.

00:36:15: And many countries said our real estate is not part of the free trade agreement.

00:36:21: right.

00:36:21: so we agreed for all these other stuff and we won't put tariffs imposed tariffs but real estate will protect which is why countries can put restrictions on foreign ownership on foreigners buying real estate.

00:36:33: Japan said we're trying to recover post-war, so we're going to open up our real estate as well.

00:36:39: We want money to come into the country and foreigners like foreign investment to come in And help rebuild the country which they did.

00:36:47: So now to come back and say actually I'm gonna impose restrictions They have to renegotiate the whole free trade agreement.

00:36:52: Yeah that's again this is what i've read.

00:36:57: You have to renegotiate.

00:37:00: That's some give and take.

00:37:01: you can't just impose it And everyone just accepts all right.

00:37:04: yeah, you just added a new Tara essentially to foreign ownership on one of your products.

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00:39:17: Now back to the podcast.

00:39:19: Yes kind of the problem that I see with that i agree With what?

00:39:22: You say is there's like an original sin Problem.

00:39:27: When post-war Japan kicked off the real estate aspect was kind of opened up because they like you said, okay money come on in foreigners.

00:39:34: Come on and let me make this happen cuz we got nothing right?

00:39:38: And that's you know economic miracle.

00:39:40: and all these stuff happened.

00:39:41: end.

00:39:41: so those Like what?

00:39:43: protocols and whatnot are still in place But at times have changed and so he've gotten his mismatch between What is Like what is wanted from a governmental and like societal, political point of view versus the actual reality of rules that exist are.

00:40:02: And then there's this whole data side which I could talk about but it would take hours.

00:40:05: so yeah its really funky kind situation.

00:40:10: right now we're guarding them.

00:40:13: Can I cut you all, Emil?

00:40:14: I'm so happy.

00:40:15: I think iI'm about to educate You on something that you didn't know which is So bloody rare.

00:40:19: but please allow me To share this screen because apparently your not just you again.

00:40:25: Ninety-nine percent of the agent we've ever worked with were Not aware Of This.

00:40:28: But here's where it's shared.

00:40:32: No no It's the Ministry

00:40:33: of Finance.

00:40:34: Is That Good Enough For You Ministry of finance?

00:40:39: Reporting Requirement.

00:40:40: Let Me See When You Can See Your Screen And this is the updated English version, that's why it says twenty-twenty six but again.

00:40:48: This law has been in place as far I'm aware and last fifteen years or longer.

00:40:53: a reporting climate under the FE FDA for non resident acquire real estate property located in Japan.

00:41:00: That needs to be filled In and submitted To The Bank of Japan.

00:41:02: We've Been Doing It For The Last Fifteen Years.

00:41:05: It Didn't Go Into Tohono Until Now Which Is What They're Discussing.

00:41:08: The Ministry of Finance via the Bank of Japan needs to receive this form, which you fill in Japanese.

00:41:16: Which is why the agents and Chihoshoshi are doing it usually if they do that because again nobody enforced And that has been reported.

00:41:24: What the Bank of Japan did with it and whether... That was something anybody ever cared about or had access to, or analyzed data collected I don't know.

00:41:35: Again It wasn't enforced.

00:41:37: Most agents we worked on were not aware this case until we educated them But This has been in place for ages.

00:41:46: The panic is unjustified as what i'm saying.

00:41:50: Just to clarify, that is not a foreigner thing.

00:41:54: That's a residency-based thing.

00:41:56: Yeah!

00:41:56: A resident here?

00:41:57: Sorry

00:41:57: sorry but non-resident correct?

00:41:59: yes

00:42:00: yeah no non non-residents.

00:42:01: so that that's the big difference right.

00:42:03: So a lot of my clients are like they're resident here and if their foreigners in there?

00:42:08: But they're residents Japan

00:42:10: you know about it.

00:42:11: You're not even serving these people normally.

00:42:13: Yes They don't require too This.

00:42:17: this is different And the big one for that is about like money laundering.

00:42:23: Yeah, and where were the funds are coming from?

00:42:26: Because they can't see it in Japan.

00:42:28: It gets sent from from overseas The residents.

00:42:34: But this discussion now about foreign requirements of like.

00:42:37: so if even If you're a local resident or if your non-Japanese national purchasing use what right is?

00:42:44: What would be?

00:42:45: this discussion is about but I do think there was some fear mongering that their purpose is to implement a mechanism, restrict ownership or increase taxes on foreign ownership.

00:42:58: I don't think that's the intent but...

00:43:04: It'd be silly with prices in places again that are overheated international hotspots like central Tokyo and the slopes of Niseko.

00:43:16: You do this as a blanket statement nationwide, you're going to like land the killing blow on the entire dwindling rural real estate market.

00:43:26: Right?

00:43:32: Yeah.

00:43:33: In Tokyo some of the requirements that they are asking for is more about flipping speculative flipping.

00:43:39: people buy it off the plan and then just sell it for twenty thirty percent or a few months later.

00:43:45: right and they're asking now the local governments, local councils in Tokyo are saying it's strange.

00:43:53: They're requesting builders so there is no punishment.

00:43:55: Requesting builders to request that their buyers don't resell within five years because what the requirement says...

00:44:02: That's why they put double capital gains in place.

00:44:04: if you sell them within five year right?

00:44:06: Oh!

00:44:07: No-no-no…that's

00:44:09: old.

00:44:09: I mean..that's existing then put out in place.

00:44:12: this is new saying please don't flip within five So please don't even resell within twelve months or within five years.

00:44:19: They, they don't want you to re-sell it.

00:44:20: of course there are some conditions that can help and end up reselling.

00:44:24: but just a request.

00:44:27: the builder will say through clients to their customer Please buy this But please promise not to resell.

00:44:36: It's for your own use.

00:44:39: There is no enforcement.

00:44:42: so people still are still doing that.

00:44:44: And until the government really take it seriously and say, look you cannot like we'll tax you further if you do that or if you never live in it?

00:44:53: One of the mechanisms that allow people to really abuse this is You Are Allowed a Thirty Million Yen Capital Gains Tax Waiver If It's Your Primary Residence.

00:45:03: So let's Say I Buy A Place for a Hundred Million Yens Then I Sell For a Hundred and Fifty Million YEN.

00:45:09: so i made fifty million yen Of capital gain.

00:45:14: The first like if it's not my primary residence, then I'm taxed on that fifty million yet of capital gain.

00:45:20: But if it is my primary residents the first thirty mil of that capital gain.

00:45:24: He's not taxed Yeah.

00:45:26: So what people are doing?

00:45:27: Is they're buying a place and putting their residency there for until They sell up maybe three or six months later?

00:45:34: And he said oh yeah That was my primary resident and they get them that waiver right.

00:45:40: so the first study mill this tax free and the government is, now I've heard reports of if you say that they'll actually want to show us your utility bill.

00:45:49: Show us your electricity shows internet and it should show some receipts.

00:45:54: don't tell me you connected electricity?

00:45:56: And then he's like one thousand a month for six months.

00:45:59: You need to have shown that you're actually live there in it being their something going on them That you genuinely move down any after software basically.

00:46:08: So so you are feeling optimistic about various hurdles that will be piled on foreign buyers.

00:46:16: I don't think there are any hurdles piled in foreign buys?

00:46:19: Yeah, like... I'm cautiously thinking the same thing but cautiously because they have done some stupid things blanket statements and their current environment is seems to be very focused on garnering votes from people who are scared of foreigners.

00:46:38: so It sounds like something that somebody who doesn't care about anything besides being elected again might put in place.

00:46:47: Yeah, but yeah I think it's tough to implement certain mechanisms.

00:46:50: and then the impact is not foreigners are increasing their price.

00:46:55: its even Japanese people buying and flipping.

00:46:59: so what?

00:46:59: i think?

00:47:01: there're two things.

00:47:01: one is fear of foreign fear But the government, you know again to get voters.

00:47:11: and then impact is of what's driving up prices.

00:47:14: And it's not foreigners buying that are driving on our prices.

00:47:17: It's like, yeah Foreigners are buying but it is also a domestic market.

00:47:21: But there's a lot of this speculative buying in for being in re-selling.

00:47:25: so unless just by putting restrictions on

00:47:28: on

00:47:29: Foreigners That's not going to reduce the price.

00:47:32: because if foreign cash buyers that are buying still have money to buy So it's gonna be taxation efforts that impact Even local residents even like Japanese nationals not just foreign buyers.

00:47:45: And then there are legal mechanisms in place that I think prevents.

00:47:48: Hey, let's just add taxes or restrict foreign ownership Or add taxes to foreign owners.

00:47:55: other countries have implemented stuff like that.

00:47:57: Yeah

00:47:58: But it's a free trade agreement That i think is protecting Is limiting japan's ability?

00:48:03: To do that whereas other countries can Do that because it's not part of the free trade agreements.

00:48:09: I

00:48:12: hope you're right.

00:48:13: But they have been talking about voting to change the constitution, so that's an option.

00:48:18: and in The White House now we do have somebody whose hobby is tearing up free trade agreements.

00:48:26: We'll see.

00:48:26: And UFC!

00:48:29: That

00:48:29: was a brilliant fight,

00:48:31: piece

00:48:31: of that headlight fight.

00:48:33: Oh my goodness like I rewatched the um this is the uh more ilia versus the gape team fight at The White House.

00:48:41: UFC Fight.

00:48:43: This is like tangent.

00:48:44: You want to think about novel use as real estate?

00:48:47: Yeah

00:48:48: just yeah.

00:48:49: well if you have not watched that fight even though i knew the winner i knew and it was thirty, I still watched it again.

00:48:56: It downloaded... And it was epic!

00:49:00: Like what's going on?

00:49:02: Did i hear the wrong thing about who

00:49:03: won?!

00:49:04: That is quite a roller coaster but amazing!

00:49:06: By the way as we wrap up and go in tangents am i the only one here whose barely staying awake because of The World Cup?

00:49:13: or is anybody else in the same boat?

00:49:15: The

00:49:16: Men's World Cup?

00:49:17: um

00:49:18: yeah uh I'm sorry.

00:49:20: the men's world cup yes Sorry,

00:49:24: being a bit cheeky.

00:49:25: No fair enough!

00:49:29: I'm just catching the glimpse on the news.

00:49:32: so yeah

00:49:35: it's

00:49:35: like isn't that guy messy?

00:49:38: Like is this his?

00:49:40: like a millionth World Cup and he's still brilliant.

00:49:43: So

00:49:44: cheers!

00:49:45: Umbape as of last night.

00:49:46: but yes

00:49:48: Oh, okay.

00:49:49: I don't watch that.

00:49:50: but um yeah no so i haven't been watching But I will watch to think Australia America is.

00:49:55: So america's our host country one of the hosts countries?

00:49:57: So that versus australia coming up I think it's a tomorrow saturday on a Saturday I believe.

00:50:02: so that's going to be a big one for fuzzies and How do you reckon they'll

00:50:08: do?

00:50:09: They did really well against Australia did real good against turkey.

00:50:13: So it's yeah, and suckers anyone's game.

00:50:15: I think America is the stronger team but you know Australia.

00:50:21: hopefully they even run for their money.

00:50:24: But again because this is The Host nation It's super interesting.

00:50:29: LB Is a super special gamma thing for Australians cuz he going up against that the host nation in Japan as well Japan's... Yeah,

00:50:36: Japan tied up with the Netherlands.

00:50:38: I thought they were going to disappear for a minute there but

00:50:41: yeah The second half of eight ninth minutes sort of equalizer and

00:50:45: you are watching.

00:50:46: see

00:50:48: Japan is a great place too To be for the World Cup because when japan play Wow that Japanese get behind it.

00:50:54: And then It Is so much fun to Be in this city on any City i think In Japan When Japan's playing in the world cup?

00:51:01: Yeah go Japan We're fingers crossed.

00:51:03: All right, thank you for your time today folks!

00:51:07: I hope we can get to do this a bit more regularly...we are only missing Blanca so next year with Blanca hopefully.

00:51:14: Look, there's so much honestly.

00:51:15: There is so much to talk about like with especially the Minkaku regulations It it is happening everywhere right now.

00:51:22: So yeah

00:51:24: I just published a last conversation About that.

00:51:26: you were warning people That this getting stricter?

00:51:30: i'm trying To get ahead of them and distillate but The rule Of thumb Is always always always its all local.

00:51:36: Its never one flat Rule for any address Anywhere in Japan.

00:51:43: that's still the case and it is actually getting even more nuanced.

00:51:49: Like with a visa, right?

00:51:50: Don't assume what you need to

00:51:52: comply with.

00:51:53: No!

00:51:54: Assume nothing!

00:51:56: And so each one... You have to do your proformers in numbers but also maybe on.

00:52:02: next I want talk about what Emil went into an interesting conversation because we've been talking about individual owners here right now in this one, but it would be good to talk about the institutional money and what's happening in the marketplace for that.

00:52:24: I'd very interested

00:52:25: in that.

00:52:26: yeah so... We had a really good session at ANZCCJ.

00:52:33: Is

00:52:33: that domestic or foreign institution?

00:52:37: Both!

00:52:38: It was just the trends of international like I'll give you the short version, that international money is really limited to The Golden Triangle and all their places are proven.

00:52:52: And if your looking for something that's not proven yet there has been a bit more domestic appetite for that, but it's really hard to get international people to look at anything that is not proven already.

00:53:10: We're talking about hotels and tourism typestays.

00:53:15: so the times like

00:53:16: our next conversation?

00:53:18: That sounds a great conversation!

00:53:19: Well we've got there highlights so will distill their information

00:53:26: Brilliant.

00:53:26: Thank you and thank everyone for joining, and do like and subscribe.

00:53:30: it's all down there And we'll see y'all next time!

00:53:37: So they have yet another jrep session.

00:53:39: hope You enjoyed the chat.

00:53:40: We definitely enjoy getting together once in a while to record these conversations.

00:53:44: For your enjoyment let us know your thoughts In the comment section below.

00:53:48: Now, we can't let you go without telling me about mailmate our sponsors and business partners.

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00:54:13: And that's it from us for this episode, folks.

00:54:16: Huge thank you for tuning in!

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