00:00:00: In my mind, there is a certain special sauce that you get with foreign residents above and beyond language.

00:00:12: There's an understanding and relatability that you wouldn't get no matter how well the Japanese person would speak English if they could speak English well.

00:00:26: Oh, I completely agree.

00:00:28: There are some outliers like people who have actually lived and worked in Western countries or English-speaking countries that absorb a bit of the mentality.

00:00:37: but your typical English fluent Japanese person is somebody who went to study at university abroad then came straight back here into a Japanese company.

00:00:48: The mentality hasn't really had time to sink right?

00:00:50: Yeah

00:00:51: exactly

00:01:07: Either folks and welcome or welcome back to Nippon Trading International's Japan Real Estate Podcast.

00:01:13: I'm your host, Ziv Nakajima again And this podcast is brought you among others by Emil Gorgies of realestate.jp.

00:01:20: He's a Tokyo real estate agent who specializes in serving international or mixed nationality families Who are looking for the perfect family home.

00:01:28: So, Emile is an Australian.

00:01:29: 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.

00:01:43: so he got dedicated loan officers.. ..and many Japanese megabanks.

00:01:48: 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 Which means that your all ready aware Of fact That man is an absolute fountain of wisdom on All things related to real estate in japan and In particular family homes.

00:02:05: The greater Tokyo metropolitan area and mortgages.

00:02:09: 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.

00:02:16: So if you've been thinking about buying your home in Tokyo, but you've sitting on the fence for a while or You just want to have a chat in English with real expert drop him line on sales at realestate.jp.

00:02:29: Hit them up today and start exploring your options Alright.

00:02:33: so right before we get into Today's episode Just a heads-up.

00:02:36: The autumn session of the Japan Real Estate Summit will take place in October as planned seventeenth and eighteenth october to be exact.

00:02:44: that's locked in now saturday and sunday.

00:02:47: we'll have the early bird pre-registration form up and running for you over the next week or two as well as the speakers roaster.

00:02:53: but if you've been to any of our previous summits either in person, online via this stream.

00:02:58: You already know exactly what to expect!

00:02:59: This is the biggest and best industry event out there runs twice a year...and you know you can't go wrong if you aim to be there.

00:03:06: so yeah.

00:03:07: Seventeenth, Eighteenth October twenty twenty six and we'll be going back to our previous home this time at the Tokyo International Forum.

00:03:14: The Pullman Hotel where we held a spring session is beautiful space but unfortunately not quite big enough for the hundred plus attendees that seem to be drawing these days, so Tokyo International forum near Tokio station is where were are gonna be at extended rooms with an entire floor including two huge breakout rooms in the back, and a big social slash mingling an expo area.

00:03:38: If you need to book your flights and hotels in advance now is definitely time to get on it!

00:03:42: And we'll have more details for you here and everywhere else online In the next couple of weeks.

00:03:46: as mentioned watch this space All right, so for today's episode this is another chapter in our local expert series where we interview real estate professionals from various areas in Japan.

00:03:58: We're still looking for professionals in Okinawa and Nagano to interview by the way.

00:04:01: So if you know anyone who's fluent enough in English And professional enough To be on the podcast For these locations.

00:04:07: please send them away!

00:04:09: And for Todays Episode we speak with Kendall Barat an agent based In Asahi Kawa Who works all over Hokkaido And he tells us how we ended up where is doing what his doing after starting as an ALT assistance language teachers a good few years ago.

00:04:24: We talk about Hokkaido city's layout and points of interest, the differences in mentality between bilingual Japanese professionals as opposed to bilingual foreigners working industry their foreigner demand for purchase and residential construction in Hokkaidou.

00:04:40: the differences between Japanese and foreigner homeowners when it comes to construction, design choices.

00:04:45: Construction methods costs common trends.

00:04:48: Specifically, we talk windows backyards and gardens.

00:04:51: We touch a bit about commuting in Hokkaido which isn't as obvious it would be other parts of the country And why you as a buyer should really do your best to avoid being a Gaijin tire kicker.

00:05:02: You know who are!

00:05:04: We also talked post-COVID tourism & market trends.

00:05:07: The local market in Asahikawa or Kendall is based.

00:05:10: What can be bought and for how much there, what are the issues that one should be aware of when they're buying a dirt cheap house.

00:05:17: And equally important why your Realtor won't always mention these to you specifically in advance?

00:05:24: We talk about effects on current political climate on buyers' tourists & staffers Current potential future implications the short-term stays market in Hokkaido, and also about what maintenance looks like up there in snow country.

00:05:38: So a really good deep dive into Japan's winter wonderland of Hokkaida on all its splendor!

00:05:44: Enjoy your conversation and I'll see you again at the other side.

00:05:50: a bunch of realtors that we can work with in Tokyo-Kanto area, few in Osaka Kyoto Fukuoka.

00:06:11: But as we get out to the more remote parts of the country and Hokkaido is not a small place but it's definitely remote from center there are less bilingual, foreigner-friendly and professional realtors that we can work with.

00:06:27: So it's a real pleasure to be put in touch.

00:06:30: so you are introduced to us by somebody else in Hokkaido who mentioned that you did a very good job for their clients And We haven't had the chance to work together yet.

00:06:41: We've definitely tried a few times but landed a live client that we can collaborate on with yet, but again you come very highly recommended and you've been doing your thing in Hokkaido for awhile.

00:06:55: So before we get into the nitty-gritty of your local market maybe give our viewers and listeners a little bit of personal background like comic book origin story issue number one kind of thing.

00:07:08: how did he end up in Japan?

00:07:09: How did they end up doing what you're doing?

00:07:10: where are originally from all?

00:07:11: Well,

00:07:13: if it has to be comic book level I need to make a bit more exciting.

00:07:17: Put up the suit?

00:07:18: No no no!

00:07:18: The real deal

00:07:20: Yeah Alright so my name's Kendall Barathe.

00:07:23: I am originally from Eastern Ontario and i moved to Japan twelve years ago.

00:07:32: And my first experience... Twelve

00:07:33: years ago you must have been what five-years old.

00:07:35: how old are ya?

00:07:38: I'm a bit older than that.

00:07:40: uh well I'll tell y'all I moved right out of university So you can extrapolate by age.

00:07:45: Yeah, so right out of university my first experience was on the JET program as an ALT.

00:07:56: Yep

00:07:57: now for those

00:07:58: who are not familiar listeners or not familiar that's a government sponsored program for English teachers.

00:08:04: ALT meaning assistant language teacher?

00:08:07: Assistant right alternative.

00:08:09: okay assistant

00:08:10: yeah assistant language.

00:08:12: And JET is the Japan Exchange and Teaching Program.

00:08:16: So it's a government program, and local municipalities contract LTE foreigners to be assistant language teachers.

00:08:28: For most part these municipalities are in Inaka which means countryside.

00:08:35: so usually its very small towns that these ALTs get placed.

00:08:42: My town was, it's called Haburo and its a fishing village on the northwest coast of Hokkaido.

00:08:53: Nice!

00:08:54: Okay.

00:08:54: Population around six thousand.

00:08:58: Wow so you must have been only foreigner in town right?

00:09:01: Yeah...the only western foreigner

00:09:05: okay

00:09:06: like It is a fishing-fishing village.

00:09:09: So some of the labor The the low-cost labor comes from Vietnam and like what that place?

00:09:22: Malaysia.

00:09:24: Anyway, some of the other low cost labors were also foreign but the only one who's like visibly noticeably foreign would be me.

00:09:33: Yeah

00:09:35: And very little opportunity to speak English.

00:09:40: I lived there for three years and it was pretty pretty immersive.

00:09:46: There's no one else to speak English with.

00:09:47: Everything takes place in Japanese, and there is... I mean Hokkaido was already an island but this felt even more like an Island.

00:09:58: Can imagine yeah!

00:10:01: And there's nothing really big around it from Haputo.

00:10:04: It's a three-hour drive to Sapporo so there's really nothing major going on there.

00:10:11: Yeah The seafood must be phenomenal up there though, right?

00:10:15: Yes.

00:10:16: It's very famous for seafood but that is not something that appeals to me.

00:10:21: Oh really!

00:10:22: Not a seafood guy You chose the wrong country mate.

00:10:25: I mean...I like sushi just fine But there are certain seafoods That are too much

00:10:32: Hardcore.

00:10:34: Yeah you've probably heard of this as the sea slug and...

00:10:39: The sea cucumber..I can't touch those two.

00:10:41: Yeah,

00:10:45: so it's a whole ocean of possibilities.

00:10:49: So I just like the basic easy-to-approach seafood.

00:10:56: but after i finished my time on jet... ...I started working at an English conversation school in Aikawa and that was in Asahikawa which is the city I'm based in now.

00:11:13: medium-sized city.

00:11:18: The Japanese has like a designation level for cities and Asahikawa is a core City.

00:11:27: What when you say medium sized city?

00:11:28: what's that in Japan or Hokkaido terms?

00:11:30: just for our people who are not familiar?

00:11:33: Yeah, so it's three hundred ten thousand People in Asahika.

00:11:38: That actually makes number two.

00:11:39: In Hokkaidō really goes Sapporo and then Asahiko.

00:11:43: but Sapporo's like two and a half million, so there is lot of space between those too.

00:11:51: But the

00:11:51: other more well-known destinations like Niseko or Otaru are smaller than that?

00:11:57: They're all quite small!

00:12:00: Nisekou in Kuchang...those are neighboring towns combined.

00:12:04: they were only about thirty thousand people.

00:12:06: maybe it was less Ok.

00:12:08: And then Otaru is around one hundred thousands.

00:12:15: All these places that people hear about if they search for Hokkaido, usually not that big.

00:12:21: It's quite a rural prefecture.

00:12:23: Furano is twenty thousand.

00:12:26: Where else?

00:12:27: Okay so three hundred and three hundred thousand... That's a decent-sized city.

00:12:31: I wouldn't call it even a town!

00:12:32: That's the City City right?

00:12:33: Yeah yeah.

00:12:37: So i've lived here four nine years now And at first I was in The English Conversation School But In is when I changed jobs and started working at a real estate company.

00:12:52: And

00:12:54: how did you land on that?

00:12:56: What drew you to that?

00:12:57: or was like the first job, it's bit of pivot isn't from teaching English through Real Estate?

00:13:04: Yes It Is.

00:13:06: So i had been teaching english for awhile.

00:13:17: If our listeners have already taught English in Japan or known people who are teaching news new pan They might already know that it is.

00:13:29: It Is possible to get stuck in a rut When it comes to teaching English, especially in small towns because there's not a lot of options.

00:13:39: so I was looking for something new and The chacho the president of this real estate company.

00:13:48: He actually was sort of referred to me by a friend-of-a-friend, so it's like that second degree referral.

00:13:57: And he approached me and said why not try working at this company?

00:14:03: What is the name of the company?

00:14:04: by the way given some love we're no trying to say...

00:14:07: So my company has called Kabushiki Kaisha Kyoe.

00:14:11: We have a franchise that is Remax branded.

00:14:15: Some of the listeners might know Remax And so our remix franchise is called Remax Killway.

00:14:24: Killway's the original name of this company.

00:14:28: Yen loans are a sponsor of the Japan Real Estate Podcast.

00:14:31: They're non-bank lender offering financing to both residents and non-residents for purchases of condominiums as well.

00:14:38: equity release cash out financing against properties that you already own in japan whether mortgaged or fully paid off.

00:14:44: they cover all of Japan's major metro areas

00:14:47: greater

00:14:47: Tokyo Osaka Kyoto Kobe Nagoya Fukuoka and Sapporo, offering full nationwide footprint.

00:14:57: No residency, incorporation or Japanese bank account is required and the application process as highly streamlined.

00:15:03: They have legitimate backers, highly reputable And I can personally vouch for their founder Mark Drapkin.

00:15:08: Yen loans welcome your business.

00:15:10: reach out to them at yenloans.com.

00:15:12: Let him know that you heard about them on The Japan real estate podcast.

00:15:15: To receive fifty thousand yen off of your loan application fee.

00:15:19: Sorry So he approached because He was looking For somebody who could help deal with foreign clients As in sometimes a case here.

00:15:26: Okay, yes.

00:15:27: He was originally.

00:15:28: he was looking for a Japanese person with high-level English.

00:15:33: Good luck that up there.

00:15:34: okay

00:15:36: But he ended up getting the reverse say English speaking person with High Level Japanese.

00:15:43: hmm

00:15:45: so um but I mean It would have been ok if you had got the like his option A?

00:15:54: but in my mind There's a certain special sauce that you get with foreign, with foreign residents.

00:16:04: Above and beyond language there's a understanding and relatability That you wouldn't get no matter how well the Japanese person would speak English if they could speak English.

00:16:20: Well

00:16:21: I completely agree.

00:16:22: i mean There are some outliers like people who have actually lived and worked in Western countries or English speaking countries, you know I've absorbed a bit of the mentality but your typical Japanese-English fluent Japanese person is somebody who went and studied in university abroad then came straight back here into a Japanese company.

00:16:42: The mentality hasn't really had time to sink in right?

00:16:45: Yeah

00:16:45: exactly

00:16:48: Okay.

00:16:49: so he brought you on board to do what.

00:16:53: yeah To specifically deal with foreign customers, foreign clients.

00:16:59: Also sort of separate from real estate.

00:17:03: this company does construction as well residential and a bit of commercial right?

00:17:12: And three years ago wasn't really lot of demand for an investment demand or new construction.

00:17:24: however he felt that I was going to change And yes, it did pan out that.

00:17:29: It did change.

00:17:30: there is more foreign demand for residential construction.

00:17:37: when you say this construction we're talking your typical single family home?

00:17:42: Yeah.

00:17:44: so the foreigners up in Hokkaido forgive me for interjecting I'm just like things come to my mind and then a bit yeah i'm getting old.

00:17:52: sorry forget them if I don't jump on them.

00:17:54: So what?

00:17:55: When You Say residential construction for foreigners, these are people who are building what places to live holiday homes.

00:18:01: What investment properties?

00:18:03: What are they looking

00:18:03: for?".

00:18:04: Yeah so all of the above

00:18:06: okay.

00:18:07: So mostly what our company does is residential homes For individual use or single family use.

00:18:18: But we have also done Homes built for investments and homes built just for vacation homes.

00:18:26: How how Is that different?

00:18:28: The construction, the layout.

00:18:30: The decking out what's different?

00:18:33: It is quite different when it comes to homes built specifically for short-term rental.

00:18:39: You've got to install certain things like the virtual check in and then the fire safety regulation.

00:18:48: So all of this is very different from a single family home.

00:18:55: When it comes to a vacation home versus a Japanese buyer, most of the difference comes from individual client tastes as opposed to the fact that its'a vacation home rather than permanent residence.

00:19:11: So thats where the foreigner aspect would come in like wider open spaces kinda thing?

00:19:18: Yeah well I'd say the biggest departure is Foreigners really want like multiple toilets and multiple showers.

00:19:28: Yes,

00:19:29: And the Japanese people are like yeah one's fine.

00:19:32: Yeah that's true.

00:19:34: So I guess That's the most frequent frequent request i come across.

00:19:40: But also another difference is

00:19:43: foreigners

00:19:44: Want more connected internet-connected in remote appliances Like remote locks, remote security systems cameras stuff like that.

00:19:58: But Japanese people never ask for that stuff.

00:20:02: That's kind of starting in Japan right?

00:20:04: I have heard about it being a little bit more common but you're right It is very much not the norm.

00:20:11: How about Windows?

00:20:11: I find that foreigners are We don't mind that much being able to be viewable from outside if we can get the sunlight in the air in, but Japanese prefer them small narrow and easy-to-cover.

00:20:22: That's

00:20:24: totally true!

00:20:26: It is really strange for me to see the newly built Japanese houses where the window is literally one and a half meters long.

00:20:42: And then like there'll be one right beside the Gengkang, The Entryway.

00:20:46: It will be like twenty-five centimeters

00:20:47: wide... They go the other way too!

00:20:48: There are these like.

00:20:52: it just seems really weird to put that in and even if Even when the Japanese have living room windows they spend so much time with the blinds closed.

00:21:04: Yeah

00:21:05: That's something totally different from well number one what I grew up within also my current preference.

00:21:11: I like sunlight coming in and looking out.

00:21:16: Yeah, it's mainly a privacy concern isn't there?

00:21:19: They're very worried about people being able to see what is going on at the house from outside.

00:21:23: How about backyards or front yard gardens?

00:21:26: do you find that we like more... Like i see a lot of Japanese people buying these second hand homes immediately renovate out grass and garden and put in concrete or pebbles low maintenance whereas foreigners like to have, I don't know barbecue space or grass.

00:21:44: Or at least artificial grass.

00:21:46: do you find anything different there?

00:21:48: Yeah i haven't worked with any client who's asked for a to replace anything with concrete.

00:21:55: they've always maintained at least some of their yard.

00:22:01: one thing would be... One type of removal is if they want additional parking space So they'll, there used to be a garden here but now I want park car.

00:22:13: so we will take out the garden and pave that over.

00:22:15: And then maybe put a carport?

00:22:17: The more you are of big city like Sapporo ,the more would need it.

00:22:21: right.

00:22:21: public transport is probably... It's medium sized city as he said But its nowhere near metro center Like Sapporo Right?

00:22:28: Yeah in Asahiko We only have buses.

00:22:32: Oh really no trams No subways or trains.

00:22:36: Sapporo's got a subway and a tram, but Asahikawa only buses.

00:22:40: so if you're going to stay here for A decent period of time.

00:22:45: A car is what you need

00:22:48: And by the way You live and work your offices in Asakawa But you are able to service people Hokkaido-wide right?

00:22:56: Yes I can travel From Asakikawa Furano not that far away Furano about one hour twenty minute drive.

00:23:06: Even Sapporo is only about two hours if you take the expressway.

00:23:12: And I have done real estate transactions in these different cities, some of those small towns around too.

00:23:22: Are involved with construction projects at all or are mainly on purchase and sale?

00:23:28: Most my work is transactions purchased and sell but significant a significant bit of construction too.

00:23:39: Okay, so you're the go-to for the company?

00:23:43: For English speaking or foreigners who are interested in doing any business with it.

00:23:48: and then does the company actively market itself to foreigners as well.

00:23:53: how do you get your clients?

00:23:55: um The company itself to be honest not so much marketing.

00:24:01: uh It is a common symptom of Japanese companies to be weak on marketing.

00:24:07: But yeah, on my personal side I do a bit more work to try and spread my community.

00:24:17: And get business through referrals

00:24:21: which is where we came in.

00:24:23: so how?

00:24:24: How do clients find you?

00:24:26: or Is it the case of your boss saying hey somebody contacted us they speak English.

00:24:30: help me out.

00:24:30: Or is it a case of people finding you directly and contacting you

00:24:35: The first thing you said, that some email or message comes to my company.

00:24:43: And yeah they would immediately ask me like hey we got this e-mail can respond it?

00:24:48: Yeah sure but to be honest the success rates on those ones is much lower than if I get a referral from previous client of friend.

00:25:02: That's probably because they've emailed a bunch of people.

00:25:04: You're just one of them.

00:25:05: Yes, yeah

00:25:07: and I if i'm being honest you can usually tell when When the client want to perspective buyers is spamming Spamming real estate companies.

00:25:18: Yeah, I mean tire kickers are a thing.

00:25:20: We

00:25:21: foreigners

00:25:21: have this image in Japan.

00:25:23: Which is why?

00:25:23: A lot of companies don't want to work with foreigners and we keep telling people you can just shoot In all directions And then disappear because that company is not gonna work.

00:25:31: Not not just with you They're not going to work With any foreigner ever again after they've experienced a few of those.

00:25:36: right

00:25:37: yeah i will wholeheartedly endorse That message cuz it is true Like if you if your spamming real-estate companies Don't expect Don't expect quick success.

00:25:49: No, and you're also making it very difficult for the rest of us aren't?

00:25:53: Yeah Okay So most of the clientele or that are the ones I actually translate into clientel Are people who have heard about to you or have been referred to you And they've been contacting you directly right?

00:26:03: yes That's right.

00:26:05: okay You also do by the way just so people know too what to reach out on.

00:26:08: Do you also do so?

00:26:10: obviously do construction that would.

00:26:12: i'm assuming you can also do renovations, right?

00:26:15: Yes

00:26:16: Yeah, that's right.

00:26:17: Yep everything related to residential

00:26:20: And thats also Hokkaido white Right?

00:26:25: Yes but the further we get from Asahikawa The more We have To add on additional expenses

00:26:34: Of course Still cheaper than getting somebody in to do it From Tokyo though

00:26:39: I would say so yes

00:26:41: And it's not like they have a huge selection of especially bilingual companies to work with in Hokkaido, right?

00:26:48: Yeah.

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00:27:49: So If want to give yourself sense of space and freedom by renting real home With comfortable Western beds, including all the necessities like baby bedding children's toys high chairs etc.

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00:28:46: And again, if you're in the market for a family home or around the Tokyo metropolitan area, Emile's your man.

00:28:51: Don't be shy to reach out to him as well at salesatrealestate.jp.

00:28:56: and now back to the podcast.

00:28:58: okay so Getting a little bit more into The current market like things that you're noticing there.

00:29:06: So you've been added not Not huge amount of time but since twenty three?

00:29:11: Yeah Yeah, a little bit after COVID.

00:29:14: You must have noticed people coming back into Japan tourism picking up again.

00:29:19: and

00:29:20: what's your Transaction volume been like, how has that been affected by recent events?

00:29:27: I mean we had right after COVID.

00:29:28: We have the Ukraine thing.

00:29:30: then we had The current government come in with their not to say racist but let's call it slightly anti-foreigner rhetoric potential limitations on the market That they said there'll be putting in Not much of what happened yet.

00:29:44: Maybe its just lip service and also the Middle East situation.

00:29:48: Right

00:29:49: Yes

00:29:50: What have you been seeing like that?

00:29:52: map out the last three years for us?

00:29:55: Yeah, a lot has happened over the past three years in Japan.

00:30:00: So yeah let's turn back to clock.

00:30:02: Three Years and The gates were reopening To foreign travel.

00:30:08: I think October twenty-two was Like the first gate dropping And things really took off In terms of foreign travel to Asahikawa because Foreign tourists have been going up steadily all across Japan over the past decade, fifteen years.

00:30:34: But previously in Asahika basically foreign tourists like never came here and now they actually come.

00:30:43: so

00:30:44: What brings them there by the way?

00:30:45: what's?

00:30:46: obviously the proximity to Furano and the slopes and stuff Like that.

00:30:49: but what else?

00:30:50: So snow number one by far.

00:30:53: Yeah,

00:30:54: um skiing snowboarding uh snowshoeing backcountry skiing all the winter activities is probably the biggest draw for foreign tourists.

00:31:04: are you a snowhound yourself?

00:31:05: By the way your coming in from Canada You must be a little bit into it.

00:31:08: Snowboarder yeah and cross country cross-country skier

00:31:13: Oh nice okay

00:31:16: And any other activity in the snow I'll i'll probably enjoy it.

00:31:20: so Yeah, I am.

00:31:22: this is a very good place for my personal hobbies.

00:31:26: Yep

00:31:28: So yeah in winter they're looking for you know Winter activities snow sports things like that and In summer They're looking For the nature hiking The Probably A lot of People have Heard Of BA And Ferdano the flower Farms the big yeah Big Tourist tourist places.

00:31:52: Yeah, I haven't

00:31:52: been but i've seen some photos.

00:31:53: they're breathtaking because

00:31:55: They are amazing and so people who come in summer looking for that And People will come in winter.

00:32:04: It's a lot more Australians than Winter.

00:32:07: Then the people coming Summer it's more East Asians and Southeast Asians.

00:32:13: Okay

00:32:14: So number one visitors to Saikawa or Taiwanese Number

00:32:19: two

00:32:19: is Korean.

00:32:22: Taiwan is by far and away number one, they mostly come in summer.

00:32:28: They also come for snow sports but I think most of their numbers are in Summer.

00:32:33: And that's been steadily growing like you said from the past decade or definitely since you've been into business?

00:32:38: Yeah it has been steadily going and then taken off since coronavirus.

00:32:50: Going back to your original question how have How has the market changed in that time?

00:32:57: I would say at the beginning people were very much squeamish maybe testing out the waters So going for a very low cost properties.

00:33:10: Okay, so this is uh.

00:33:11: This is a new frontier In rural Hokkaido and they don't.

00:33:17: They're not so confident about spending a big chunk of money.

00:33:22: And do you have both in Saikawa?

00:33:24: You've got lower end and higher-end properties.

00:33:26: Okay,

00:33:26: yeah

00:33:27: Condo units too or just houses mainly.

00:33:30: Yeah In the Saikaw there's condo units but once you move outside of a Saikawat it's just houses But those quite a few condo unit to choose from in SaIKAWA.

00:33:43: So in the SaIKaw market There is a lot available at the lower ends.

00:33:51: so in my mind anything under five million yen in a saikawa would be the very cheap section.

00:34:03: But there's

00:34:04: bottom of the barrel stuff,

00:34:05: yeah?

00:34:06: The bottom at the bottom or the barrel?

00:34:07: Yeah They are they're available but I'm sure as listeners will know There is usually big problems associated with them.

00:34:17: There was a reason to that.

00:34:18: cheap for Sure!

00:34:21: But if you move above and you stick to under let's say ten million yen, there are a lot of reasonable options that can get for under-ten million yen.

00:34:31: Things that were relatively recently built with no major problems.

00:34:39: so... Ten million is pretty comfortable in Isahikawa.

00:34:44: And then I would say the domestic buyer or Japanese buyers looking at their own residents like up to twenty million.

00:34:55: Between fifteen and twenty million is usually what the long-term residents will go for because when Japanese buy existing houses They don't want to deal with any problems, and they prefer much more recent.

00:35:09: What does that budget get you?

00:35:10: What age house?

00:35:12: yeah so fifty million yen Would buy you a house within within twenty years old.

00:35:19: So two thousand six

00:35:21: Okay That's more than we can get in most other medium index cities but it's not bad

00:35:26: Yeah, and I would say a good condition house from two thousand six.

00:35:32: And size-wise it's your typical three LDK living dining kitchen?

00:35:36: Three bedroom living tiny kitchen

00:35:37: or...I'd say four LDK is more common in Asahikawa.

00:35:42: Okay so they're bigger too.

00:35:43: okay that's interesting.

00:35:44: Average floor area hundred twenty square meters.

00:35:48: Yep

00:35:49: i would say that's normal.

00:35:50: an average land could be between two eighty square meters.

00:35:56: twenty square meters would be average.

00:35:59: It's quite comfortable, okay?

00:36:03: So first you've got people coming in at the lower end of the market.

00:36:07: Yeah so the shift I was describing is that they were a bit lack of confidence.

00:36:14: but now i'm seeing more people look above the bottom of the barrel looking towards ten million or even fifteen million for a vacation home or for longer term remote work, digital nomad type of thing.

00:36:35: It's amazing how five million which you know in US dollar terms that is like what?

00:36:40: Thirty-five thousand USD difference the amount money to be pouring into your house where do think you've saved so much are going to be putting double that amount at least right over the long term.

00:36:52: Yeah The costs do spiral quickly and Also, this is kind of a separate note.

00:37:05: But if you're dealing directly with the Japanese Real estate company like You may get there and find out problems that they didn't tell you about And it's not that they were trying to be.

00:37:20: It's not what they are trying To keep things from you or like hide things from me?

00:37:25: It's just they thought it's a five million yen house.

00:37:29: This is what you

00:37:29: should have expected.

00:37:31: You shouldn't have expected this, why?

00:37:34: Why should we tell you that an old house is old?

00:37:39: A cheap house is cheap.

00:37:41: That right there is one of the main reasons people hire us because... We keep explaining.

00:37:49: They're not gonna tell you what questions to ask that they're yeah assuming That, you know the market and if you don't that's on new there.

00:37:58: The agents job is not to educate you in the intricacies of the market.

00:38:02: Yeah Your job is to get you to purchase the property legally and properly And whichever property you want will help you get right?

00:38:08: Yeah, and again to repeat it's not.

00:38:12: It's not malevolence.

00:38:13: It's no evil ulterior motive.

00:38:17: It just.

00:38:18: They think its so.

00:38:21: So they think it goes without saying.

00:38:24: They think its immediately evident, so they're not going to say it.

00:38:32: Yeah very true and I mean i guess It's maybe a false assumption.

00:38:38: but there assuming that the market fundamentals are something you already aware of if your here shopping right?

00:38:48: which is not an unfair expectation for people to kind of educate themselves at least a little bit about the market they're active in, but you obviously if somebody approaches you and you recognize that their clueless then you would let them know right?

00:39:01: Well I so when i look at a house.

00:39:05: I do try and look at it from a foreigner's perspective And point out things that might be obvious completely obvious to a Japanese person.

00:39:20: I think the main thing is that people are just not aware.

00:39:23: If they haven't been active in this market before, They're just not a word that they're not really built to last here right?

00:39:28: Like everyone's kind of expecting That you gonna rebuild the entire thing when it hits about forty anyway Right?

00:39:35: yeah?

00:39:37: So Yeah for four years old.

00:39:39: That's a good cutoff i would say most Japanese People if their looking at A house older than forty Years Old Their Looking with the intent of demolition.

00:39:52: Correct, they're buying it land.

00:39:54: basically

00:39:56: Yeah It's pretty rare that someone is looking at something like this old with intention to renovation They are looking to demolish

00:40:06: Unless it has some architectural value.

00:40:09: Restoration might make sense for an artist or a restaurant Or a Yokan type property.

00:40:15: But otherwise yeah I agree

00:40:18: other than the unique sort of special properties, but the other thing about Asahikawa is it's a pretty new city so there's not a lot historical value to any of our buildings.

00:40:31: So modern builds mostly?

00:40:33: Yes by the way sorry for jumping around just came to me when you're handling these construction projects do you see any trend away from these cheaper wooden better reinforced homes?

00:40:48: or is it still cookie cutter, thin wood kind of construction?

00:40:53: For me I have not had any experience with anything other than wood.

00:40:59: Yeah

00:41:00: um i mean RC.

00:41:04: what's that?

00:41:05: in English do?

00:41:06: they just say

00:41:06: concrete.

00:41:07: yeah reinforce concrete

00:41:08: yeah.

00:41:08: so concrete uh concrete and light steel construction Is pretty rare in a Saikawa.

00:41:15: to begin maybe one or two percent of homes in Asahikawa would be steel, or concrete.

00:41:28: It's ninety-eight per cent wood and most architects, most builders only have experience with wood construction.

00:41:39: How about insulation?

00:41:40: Is that a thing now or still...

00:41:42: Yeah so That is something we are very tuned to like even the Japanese buyers, in a Saikawa it is very important to be insulated.

00:42:00: On any given year It will reach minus twenty-five at least once and then your average cold night will be minus fifteen.

00:42:12: At that temperature you don't want a poor job insulating.

00:42:23: Most architecture, most like builders in Asahikawa I would say the standard has moved to triple glass, triple pane windows and then for insulation it's usually urethane foam on outside of glass wool.

00:42:45: so double insulation layer.

00:42:47: That's

00:42:48: a pretty expensive method of insulation, isn't it?

00:42:51: Yes.

00:42:52: Yeah Probably a total wall width of three hundred millimeters

00:42:57: Okay

00:42:59: But you could go even higher like I've seen.

00:43:02: four hundred millimeter five hundred millimeters of insulation If

00:43:07: anyone runs the projections on how much actually saves you in heating and power costs over time.

00:43:13: And just sorry my mind wonders but i'm curious

00:43:17: if your permanent resonance it will make up for its cost.

00:43:24: Also, there's some like zero emissions house...

00:43:31: Zen homes yeah?

00:43:32: Yeah!

00:43:33: There are some government subsidies you can get or preferred rates on mortgages too.

00:43:42: so there are more benefits to the Japanese getting these super insulated homes.

00:43:48: if your coming here as a vacation I don't think you'll ever make the money back.

00:43:52: You will still be insulating, like a decent amount of insulation but probably won't spring.

00:44:02: for triple windows and super thick walls say just go with standard amounts.

00:44:11: Have you seen construction that's tying back again to the macro, more global economic picture?

00:44:18: Have you see construction costs rising with this situation in Ukraine and Middle East?

00:44:24: Yes.

00:44:24: So a big jump after the Ukraine conflict... ...and then another big jump for the Strait of Hormuz.

00:44:35: We're talking material cost like twenty percent each time for each of those conflicts and then in the background, labor increase steadily rising.

00:44:53: That's more a Japan thing right?

00:44:55: The agent population shrinking workforce

00:44:58: yeah.

00:44:58: so material costs have been spiking but labour cost has always been rising as it gets harder to find your specialists.

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00:46:01: Well, speaking of tying into stuff.

00:46:03: That's again I'm wondering how the current Foreigners go home.

00:46:08: climate is affecting that shrinking workforce right?

00:46:11: you probably seeing less and less available people from other countries to work in the industry.

00:46:18: Yeah So there has definitely been a change in the climates regarding foreigners both residents and visitors.

00:46:33: I should say that at my company, i'm the only foreign worker here but I work in the office.

00:46:38: So

00:46:40: kind of like your jet experience right?

00:46:41: Your ALT experience.

00:46:43: yeah.

00:46:45: so i'm not really sure what's going on with the construction side because I know there are a lot of construction companies who're hiring Bengali Pakistani and Nepali twice.

00:47:02: No, no you said Bengali Pakistani and then

00:47:04: yeah.

00:47:06: And then what else?

00:47:07: Vietnamese lots of Vietnamese Indonesian.

00:47:11: Yeah.

00:47:12: So I know that construction companies hire a lot people from those countries But i'm not sure What the change has been for them in The past like let's say half year one-year?

00:47:23: Um.

00:47:24: I mean i'm Sure it's going to get Steadily more difficult For Them but i'm Not sure if i'm NOT sure If It's put A damper on the number Of People coming to work in the construction industry.

00:47:35: Well, Japan's pretty good at... We had a few rounds of that with Brazilians in the past and then other countries too definitely now within Nepalis And Japan is really good at giving people very short-term visas That can never be extended into anything else like come here war go away kind of thing

00:47:52: Yes.

00:47:52: So maybe not that much.

00:47:53: have you noticed any of your buyers though having second thoughts?

00:47:56: because there was potentially conversations about increasing taxes or restricting some potential listings to only residents.

00:48:07: Have you seen anybody, because other agents we spoke to have definitely felt a damper.

00:48:11: that's now slowly recovering but not quite there yet?

00:48:16: I might not say second thought thoughts but i would say new source of anxiety for them.

00:48:26: so Nowadays, I think every one of my clients has been asking me like what's changed.

00:48:35: What might happen if i buy?

00:48:36: Will they take it away from me down the tracks?

00:48:38: Yeah and existing people who have already closed a transaction are asking me as well but also people who are looking to buy And If you've already closed that say not much to worry about Like...I don't- I don't think anythings come into effect To change.

00:48:55: like existing

00:48:57: owners I mean, Japan is the first world developed country.

00:49:00: It's not going to be like Thailand or Malaysia where they suddenly take your property away from you and give it to a police chief for anything Like that.

00:49:09: But i'd say with people coming in There have been certain changes The reporting of the citizenship For buyers And slightly more documentation You have to provide To the legal affairs bureau the Homo Kyoku for your registration.

00:49:31: And also when it comes to tax payment and representation, this is handled municipally low locally.

00:49:39: so like every single town has its own form in process to do tax representation?

00:49:46: You now must have a designated tax contact.

00:49:49: danger I mean.

00:49:49: those are all welcome changes.

00:49:51: they don't see any problem there.

00:49:53: When i first started small towns like didn't have any form to fill out for tax representation.

00:50:01: Yeah,

00:50:02: it just didn't exist.

00:50:03: and now they're like okay you need to need to fill this out we need to... We need to have a domestic contact for you.

00:50:10: I mean to have uh a representative for tax payment

00:50:15: yeah which is fair enough.

00:50:16: that's trying to avoid having to chase you overseas when you don't pay your taxes right?

00:50:22: So those are the changes i've been seeing.

00:50:26: And yeah, as far that goes I don't think there's a big worry for prospective buyers.

00:50:34: But if they ask me what is going to change in the future?

00:50:36: Well...I do not have a crystal ball!

00:50:39: No, no one gets angry.

00:50:42: Have you seen them like?

00:50:43: we saw huge drop when the business manager visa changes came?

00:50:49: You know, the five million yen Airbnb in The Countryside Dream has just gone away for a lot of people.

00:50:54: Have you had any of those requirements?

00:50:56: Sahikawa even an AirBnb Minpaku friendly municipality.

00:51:01: is that been any part of your clientele?

00:51:04: So as it's a big part of our new construction when I said we would build investment properties i was referring to short-term rental investments because That's really the only means you can get good profit from.

00:51:18: Well,

00:51:18: plus Saikawa's population I was checking before we spoke is kind of shrinking.

00:51:23: So if you're banking on long-term tenants that might not be a good investment strategy?

00:51:28: Yeah, Saikawas population minus one percent year-on-year.

00:51:32: so it's going down pretty much in line with the country in general.

00:51:36: yeah for sure but short term say is there isn't?

00:51:41: Short term rental has been picking up again when i mentioned the shoot-up in foreign visitors.

00:51:50: It's been accompanied by a big increase in hotel rates, short term rental rates.

00:51:57: so it's becoming more lucrative business and lucrative investment.

00:52:06: Going back to Business Manager Visa like originally some people were hoping withered, withered away.

00:52:19: I don't get too many inquiries about that anymore.

00:52:23: Yeah?

00:52:24: How but have you actually helped people was.

00:52:27: so let's say you construct or they buy a house that would comply if feasible to get a license.

00:52:32: do you see how they're doing?

00:52:35: i know your company doesn't handle those rentals directly.

00:52:38: are in touch with the open doors on public kind of thing?

00:52:43: yeah another company, um in either if it's in Ferrano would be the other company I refer them to.

00:52:54: If its in Saikawa i have a few more options.

00:52:56: sorry for those companies.

00:52:58: or uh management of short-term rental and no...I don't really keep up with how business is going.

00:53:09: they had my email contact information like that.

00:53:13: can ask me any time you want but I don't make an active effort to keep up with their investments.

00:53:21: Yeah, fair enough we'll loop in one of those other companies maybe in a future interview have the chat with them.

00:53:26: okay so you saw may be slight hesitation?

00:53:30: But basically business as usual for your from your end.

00:53:34: anyway.

00:53:35: yes i mean there is there is a hesitation but on the flip side of that There are also some people who were like Okay why got it by this year before before something happens.

00:53:48: Yeah, we get a bit of that and also to be fair I'm not big fan the business manager revamp policy especially when it comes to existing people who have already moved their entire family in life savings into Japan but suddenly... We do get more serious buyers Sorry to say, but the dreamers are kind of petered off and we get people who were actually aware what they're getting into.

00:54:15: Which is a good thing I think.

00:54:17: yeah i mean unfortunately with The old five million yen number it's pretty easy for someone.

00:54:22: just look at that as A shortcut.

00:54:25: Yeah

00:54:25: an easy an easy in.

00:54:27: Because yeah five million Yen It's only thirty one thousand us Dollars.

00:54:32: yeah

00:54:34: its uh?

00:54:35: Its.

00:54:36: it Is enough To make you sort Of drool.

00:54:38: I'll

00:54:41: just move there, see what happens.

00:54:42: kind of thing.

00:54:43: All right good stuff.

00:54:45: any other insights feedback messages that you want to let people know about before they take their first steps into your respective market?

00:55:02: My Market which is mainly it's centered around a Psychicala.

00:55:05: It Is A Regional Markets.

00:55:10: It is very detached from what's available in Tokyo.

00:55:16: What's going on in Tokyo?

00:55:18: Um, it does function sort of independently.

00:55:23: Also a lot of the real estate companies here are local not chains.

00:55:28: So like that the chains and the chains in Japan would be like Mitsui Mitsuhiro-san Sumitomo Mitsubishi all those big ones.

00:55:39: there was none.

00:55:41: There's a lot of single owner operators A Lot of just single single offices like my company the single office not chain

00:55:54: Old-school.

00:55:55: I mean your companies are bit more modern looking.

00:55:57: they're looking to cater to foreign clientele But most of them would be allowed, but when we contact that typical listing agent That's not in a big city and They usually have never worked or walked with very few foreigners in the past.

00:56:11: That's a situation there as well, isn't it?

00:56:13: Yes so yeah when I say that my market is a regional market...I mean It's still very early In terms of foreign buyers.

00:56:26: There's a lack of maturity When it comes to that A lack of knowledge on The Japanese real estate company side.

00:56:37: So I would say that's the most important macro concern.

00:56:45: That people should be aware of?

00:56:47: Yeah, they shouldn't be aware.

00:56:53: then remind me what the main question was.

00:56:56: Well just parting if anyone is entering this market again for a very first time and let us say They're not working with your company For whatever reason Just What Would you advise them to consider?

00:57:06: So one thing Is yeah Be aware You are working non-foreigner aware kind of business environment, right?

00:57:14: Yeah.

00:57:15: Non-forearnerware.

00:57:16: the next thing I would Semi caution them about is Maintenance of your property Is going to be harder than you think it is.

00:57:27: Oh that's

00:57:28: a big one in snowy and snow land.

00:57:30: yet definitely

00:57:31: yes.

00:57:31: yeah because Snow the snow was a big.

00:57:36: It's a Big maintenance issue in winter And also in summer.

00:57:40: we have larger properties, more properties with yards than they would have in like other parts of Japan that are smaller properties.

00:57:50: Weeds here grow explosively.

00:57:54: yeah you might think oh Hokkaido is cold?

00:57:58: Yeah it's cold but once summer hits...we get thirty degree days and its

00:58:04: humid as hell!

00:58:06: It still.

00:58:06: it's still humid and weeds just explode.

00:58:10: so If you don't want to piss off your neighbors, then you've got to have maintenance for summer weed control as well.

00:58:19: And the local municipality if you're not living in the property and doing it all yourself on a weekly basis be prepared to fork out some big bucks from maintenance right?

00:58:29: Yeah Yes so that's yeah.

00:58:33: maintenance is another thing I think people should be wary of when it comes to regional markets because There's not, like I said it is not developed.

00:58:45: Yeah so there are a lot of companies that will go out to your property and clear weeds.

00:58:51: We do have a lot... we do have allot of companies who'll go out on their property with clear snow.

00:58:55: That isn't established business in the Sahiqala but they don't go up to your properties with clear weeds.

00:59:06: Otherwise

00:59:06: its nice market.

00:59:07: you like them or obviously you're there?

00:59:10: I love Hokkaido.

00:59:12: Love living here, the snow and nature wide open spaces.

00:59:20: this is my place.

00:59:22: Let's

00:59:25: see what else?

00:59:30: My general advice which always be flexible.

00:59:36: prepare for unexpected bumps that comes with buying in a foreign market.

00:59:44: don't try and apply your home country's standards.

00:59:48: That is a very important

00:59:49: tip actually,

00:59:51: it will fail suddenly unexpectedly.

00:59:54: so much frustration and disappointment.

00:59:57: yeah

00:59:59: good staff man!

01:00:01: Very happy to have had you on.

01:00:02: thank you for that.

01:00:03: I'm sure we'll get some people who want to get in touch with you after that.

01:00:06: where do they find?

01:00:08: Yeah well i guess you can put my email address.

01:00:12: not

01:00:14: a good idea, social media profile I'd say is better.

01:00:20: The bots love email addresses.

01:00:22: you're going to get spammed!

01:00:23: Okay all right thanks for telling me that

01:00:29: unless it's the company general catchall kind of email address?

01:00:32: That one isn't bad to publish but your personal one.

01:00:35: let's not get you swamped.

01:00:37: okay well yeah i'll tell my main companies website.

01:00:43: Then

01:00:44: and then yeah, otherwise contact Dave and he'll send me a message.

01:00:49: I was happy to.

01:00:49: so are you

01:00:50: all

01:00:50: right?

01:00:51: Do you want to be contacted on social media or your own LinkedIn?

01:00:54: no or anywhere where you were.

01:00:57: I mean people can find your name easy enough.

01:01:00: I Am on Facebook.

01:01:02: Okay

01:01:03: Yeah And you can contact me through there.

01:01:04: Are

01:01:05: you okay with business inquiries coming in through facebook?

01:01:08: yes

01:01:09: Okay, so we'll link to your Facebook profile.

01:01:12: We're linked to your company's website where people can also find the the catcher email address And obviously will refer them directly to you.

01:01:19: good stuff

01:01:20: all right sounds grace.

01:01:22: Thanks for your

01:01:23: time.

01:01:24: yeah thanks so much.

01:01:24: I have me on.

01:01:29: So there you have it.

01:01:30: Majestic Hokkaido, winter wonderland and one of the country's top holiday-and homebuyer destinations.

01:01:35: I hope this was as educational for you As It Was For Me.

01:01:38: Let me know what you thought about this episode.

01:01:41: Now, we can't let you go without telling me about MailMate.

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01:02:20: So please let us know what you thought about this episode or the podcast overall In the comments section here on our social media channels.

01:02:27: We've got a very active Facebook group AND business page Both under the name Japan Real Estate On Facebook And that's also the name and URL of our YouTube channel.

01:02:35: If you'd like to follow us there, Japan Real Estate on YouTube as well!

01:02:38: We would appreciate your rating or review on Spotify... ...or Apple Store or wherever you're tuning in from.

01:02:44: Hope to have with again a great rest day or night ahead!

01:02:48: Yeroshiku!