00:00:00: If you jump on Yahoo Locktions, which is a big marketplace for these X display models.

00:00:05: Is just to give your perspective like kitchen that might be two million yen of base grade or mid-grade standard size kitchen nothing custom.

00:00:14: That's my cost about two million new Which is one of the slightly maybe cheaper ones.

00:00:20: They sell as x display models from showrooms online.

00:00:25: but even if I'm two hundred thousand to four hundred

00:00:28: thousand yen really Wow Either folks and welcome or welcome back to Nippon Trading International's Japan Real Estate Podcast.

00:00:50: I'm your host, Ziv Nakajima again And this podcast is brought you among others by Emil Gorgies of realestate.jp.

00:00:58: He's a Tokyo real estate agent who specializes in serving international or mixed nationality families Who are looking for the perfect family home.

00:01:06: So, Emile is an Australian.

00:01:07: 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.

00:01:21: so he got dedicated loan officers.. ..and many Japanese megabanks.

00:01:25: And if you're a regular listener of the podcast, You probably already know him from our JREP.

00:01:30: The Japan Real Estate Experts Panel Sessions Which means that your all ready aware Of the 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.

00:01:46: 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.

00:01:54: so If u've been thinking about buying your home in Tokyo but you've been sitting on the fence for a while or Alright, so I'm rushing to publish this episode today, on September the third of October.

00:02:16: Because it's the last day or if you're here in Japan during which you can still purchase the early bird heavily discounted tickets for the Japan Real Estate Summit's Autumn Session that is taking place at Tokyo International Forum and online via streaming channel.

00:02:32: Tickets are only discounted for a few more hours, folks.

00:02:35: They're going to normal full price tonight at midnight Japan time which is just in a few hours from now.

00:02:42: yep but if you happen to miss the deadline they're still available At The Normal Price Which Is Still Very Reasonable Especially For The Value That You'll Be Getting.

00:02:49: This Summit Probably Needs No Introduction.

00:02:52: It's The Biggest If Not The Only Industry Event At This Scale That'S Taking Place Entirely In English Here In Japan Twice A Year And it Covers Every topic related to the sector, from loans and mortgages rural rejuvenation, creative real estate projects key properties and even visas incorporation an immigration you name it.

00:03:21: And It's all happening in just over two weeks time.

00:03:24: Seventeenth, eighteenth October that Saturday and Sunday.

00:03:27: and those tickets either in person or for the online stream where You'll also be able to network with other online participants as well as float your questions To The Speakers to Be Answered live on stage during their presentations or at the Q&A panel.

00:03:40: So those tickets are available at summit.realestate.jp, again still discounted until midnight tonight.

00:03:48: that's thirty September Japan Standard Time but very affordable still even after tomorrow.

00:03:53: so hop over there and grab yours today.

00:03:56: Summit.Realestate .JP.

00:03:58: We are speakers and sponsors, and the Japan Real Estate Summit community members who have been attending again year after year.

00:04:05: We cannot wait to see you all there with us!

00:04:08: All right.

00:04:09: so for today's episode which might be the last one before this summit.

00:04:13: I know i said it again...I'm not entirely sure yet.

00:04:16: This is another j-rep session that we've had earlier today Tracy Northcott Blanka Kobayashi Emil Gorgies and myself in which we talk about renovations and more specifically the second-hand market.

00:04:28: that's formed around kitchens, bathrooms & other near new facilities that are stripped away from houses being renovated.

00:04:36: Who is buying these?

00:04:37: And why?

00:04:37: how much do they go for?

00:04:38: Is there a Second Hand Market for them?

00:04:41: Or is it worth your time to keep these and try to resell when you renovate?

00:04:46: We also talk about the kind of features, appliances and facilities that foreign buyers like to put into houses they're buying or renovating which can often be quite different from what Japanese buyers are after.

00:05:02: the differences between this process here, as opposed to in other countries.

00:05:09: The role of your realtor and why.

00:05:11: it might be a good idea either educate yourself on unique intricacies of Japanese property market or get an advisor or consultant who will guide you about what questions they ask.

00:05:22: how to perform due diligence some of the more annoying aspects of international banking into and out-of Japan for the purposes of property purchase, management and sale.

00:05:41: So nice long conversation there about a wide range of topics.

00:05:44: have a listen and I'll see you again on the other side.

00:05:47: All right.

00:05:48: last session of The Japan Real Estate Experts Panel Right before the Japan real estate summit.

00:05:54: early bird discounted tickets end midnight today.

00:06:00: I'm not sure how long it'll take me to publish this, but you probably have about eight hours... ...to buy those discounted tickets if you happen to hear this.

00:06:06: But they're pretty affordable from first October and onwards as well.

00:06:12: We are up to a third of the ticket sold in.

00:06:16: two-and-a-bit weeks left to go so don't take too long.

00:06:21: get your ticket today.

00:06:26: It's looking good, the numbers are picking up.

00:06:28: We have a lot of people buying now while he is still an early bird.

00:06:32: And we've got

00:06:33: Matt!

00:06:33: He will be joining and I thought that he was not with us but it IS going to be with him.

00:06:36: Yes, he is!

00:06:37: We should

00:06:40: always encourage him to do

00:06:43: so.

00:06:43: Yeah... He's

00:06:46: such a funny guy.

00:06:48: Yeah, he's a very good presenter too.

00:06:50: I find myself entranced whenever he speaks... He is bit of story teller isn't it?

00:06:57: Yes!

00:06:57: It makes the difference and i think that he has such vast knowledge about what his subject talks.

00:07:08: so much more And so many funny stories.

00:07:10: oh my god.

00:07:13: To those of us, to anybody who's watching these videos for the first time Matt Ketchum is the OG Akiya hunter.

00:07:20: He was helping people buy Akia before Akia even a thing.

00:07:25: We actually found out about him when we were wondering if there's anybody who handles these weird properties that the international media keeps talking about.

00:07:34: He popped into our clubhouse room, which was a thing at the time one day and they said hey by the way I do Akias!

00:07:41: And yeah he has stories of snakes bats goats all kinds of weird things happening in Japanese countryside.

00:07:48: Oh and the hoarders don't forget them.

00:07:55: I was gonna ask, by the way Blanka you're going to talk about dealing with older houses in your presentation at The Summit.

00:08:02: Do you ever get a house like right after it?

00:08:06: Like somebody just bought it and say... ...I don't even want go there Blanka!

00:08:09: You handle that for

00:08:10: me?!

00:08:14: Kind of.

00:08:16: What we did?

00:08:18: really full-of things but the new owner removed like seventy percent Before we go in because that one was a hilt hazard just to going.

00:08:31: I Think I know which one.

00:08:32: That was Blanca, do you

00:08:33: know?

00:08:33: Which one?

00:08:34: that will see us exactly?

00:08:36: and And when won we got?

00:08:39: that was basically Yeah they bought it They they were in, but a lot of the things we're still inside.

00:08:51: So there was a lot dispose A lot of garbage.

00:08:54: Yeah it can get pretty crazy.

00:08:57: Well you want to hear?

00:08:58: The opposite end of the extreme I've had right now where so our brokerage also does some renovations not like what you do But more sort-of standard kind of changes And we and generally we don't for clients are by a place.

00:09:14: maybe that one too.

00:09:15: you know we do the wallpaper a bit of a refresh.

00:09:19: We got one guy right now, he just bought a renovated mansion.

00:09:23: so it's nicely fully renovated with warranty and everything.

00:09:26: they are pulling out the kitchen completely and putting a different kitchen in um spending several million yen on a new kitchen.

00:09:34: i'll tell you us sorry

00:09:34: that's nothing.

00:09:35: yeah please finish it.

00:09:37: I will

00:09:40: tell your different extreme.

00:09:42: Yeah, so this is actually the second case where I've had a renovated mansion.

00:09:45: So everything's brand new.

00:09:47: Where it generally... The wife Is A Big Cook And The Standard Japanese Kitchen.

00:09:55: Not Up To Scratch.

00:09:56: They Completely Remove It And Spend Another Five to Eight Million Yen On A New Sort Of High-End Kind of Kitchen Replacement.

00:10:05: the kitchen antenna is brand new, it's fully renovated so there's a brand-new everything and they have to pay.

00:10:09: It's a few hundred thousand yen just to remove it and dispose of it.

00:10:12: yeah

00:10:13: um So that this is the second time I'm sure...

00:10:17: Is there a second hand?

00:10:18: It's not even secondhand.

00:10:19: you're saying it's new.

00:10:19: There must be like people like Tracy's nodding their way.

00:10:22: She

00:10:22: definitely is actually Like especially an Anton does this a lot.

00:10:27: Actually he gets A lot of like X display stuff someone like Blanka's had in her display room or people.

00:10:38: But you have to really speak Japanese, right?

00:10:40: Because the builders they swap stories and share things online.

00:10:47: so yeah there is a market for that.

00:10:49: I

00:10:49: tell you what i'm doing now!

00:10:51: I have a client on board brand new house New Built And she doesn't like how it's done.

00:11:00: So we are redoing everything And I mean everything.

00:11:05: The only thing that's staying from the original new build is two toilets and a bathroom, otherwise everything goes.

00:11:16: so like in the first floor.

00:11:18: she had two small bedrooms... ...and she wants washitsu.

00:11:23: So we are changing into washi-tsu with a new shōji and everything is customised

00:11:32: Yes,

00:11:32: into the Japanese tatami room.

00:11:34: So there's a custom made screens custom-made like even wardrobes The Japanese wardrobe.

00:11:40: so we are literally building everything making that into Japanese rooms and upstairs.

00:11:47: She also doesn't like the kitchen?

00:11:50: We had to remove the existing kitchen Also brand new.

00:11:54: nobody ever cooked actually Nobody stayed overnight in their house.

00:11:59: And changing the kitchen Not only will you be positioning it, but like a brand new beautiful custom-made kitchen with bar and everything.

00:12:08: I mean the house is going to be absolutely gorgeous.

00:12:11: But she basically bought a brand-new house.

00:12:14: And then we are redoing that whole thing.

00:12:17: Are you just

00:12:19: throwing all of that away when you peel down?

00:12:22: Of course right now It's sitting in my storage.

00:12:27: But you know, as he's saying like those are brand new things.

00:12:30: So there is a second hand market for it but even just two listed and stuff.

00:12:34: It's a little bit...it's mettoxide complicated..but yes its there.

00:12:39: we might offer to somebody.

00:12:41: I'm

00:12:43: not like Tracy was saying, yeah

00:12:45: projects or you know if we are doing something for us as well.

00:12:48: right now We had to hold everything like a big storage So they moved everything into our storage.

00:12:54: But even like right now the guys aren't changing the front door because she didn't even lengthy and transdoor.

00:13:00: so Like we are gutting.

00:13:02: The whole thing

00:13:02: Wow might be able to actually strike A bit of relationship there with Anton and shoe cuz.

00:13:08: They do renovations of old houses don't they?

00:13:10: And then Like Tracy was saying, they might be happy with that kind of stuff.

00:13:15: Yeah I mean or even you know that Facebook group the building and renovation.

00:13:20: there's a lot of DIYers on that who may be interested

00:13:25: in it.

00:13:26: Well i'm thinking about buying an apartment just like investment apartments so im not in a rush to let anything go.

00:13:36: What size and color is it?

00:13:37: Because I'm looking at maybe doing a renovation in one of my other house, like you know.

00:13:44: Yeah exactly!

00:13:45: Exactly i mean there are projects that can use it on.

00:13:48: but some people they just buy properties And They're Like I don't like this...I Know It's new or whatever But I Don't like it..it's not renovated to My taste.

00:13:58: That why when People Are Selling and They Always Ask me Oh I want To Sell Should I Renovate Before I Sell?

00:14:04: I'm Like.

00:14:05: No

00:14:06: No,

00:14:09: not anything major.

00:14:11: Clean it up and fix some cosmetic changes but don't renovate or invest into a house.

00:14:19: you'll be selling because the new owner has completely different ideas than you do.

00:14:25: And also, if you do renovate to sell.

00:14:27: You won't be putting the high end stuff in any way right?

00:14:30: So maybe that's why people are ripping it out as soon they go in because The stuff that has been tarted up to stage doesn't really have... isn't really robust is what their new owner might want.

00:14:47: so

00:14:47: Yeah exactly no point.

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00:15:32: now back

00:15:34: The issue with the resell market, you know sort of getting these and like You know Like now blank is pulled at this new kitchen out.

00:15:41: And do think should we?

00:15:44: Resell it if he jump on Yahoo auctions which is a big marketplace for these X display models Is just to give your perspective like a kitchen that might be two million yen A base grade or mid-grade standard size kitchen nothing custom.

00:15:59: That's my cost about two million in New Which is one of the slightly maybe cheaper ones.

00:16:05: They sell as X display models from showrooms online for even from two hundred thousand to four hundred thousand

00:16:13: yen.

00:16:13: Yeah, really Wow

00:16:15: yeah and shipping is about fifty to eighty thousand yen because they're large cabinets right?

00:16:21: Yep

00:16:22: I know a guy.

00:16:25: But I mean there all look at it in like other prefectures and stuff that's

00:16:28: not think they are very usually far

00:16:31: if They're far and they difficult to move.

00:16:34: So there's this multiple cost factors, right?

00:16:36: And then you think well if I have an item To want a cell often or like in these case Right blanket might have a prop.

00:16:46: An item anything.

00:16:47: i can put it into my place.

00:16:49: But the item might be two point five.

00:16:51: The kitchen might be Two point five meters wide.

00:16:53: You want A two point nine meter Kitchen.

00:16:56: that means It's going to need extra cabinet and a new countertop as Well.

00:17:00: so So that's going to be a brand new order from the manufacturer, from Panasonic or whatnot at retail price in just that one portion.

00:17:10: You're better off just jumping on Yahoo Auctions and finding a two point nine meter kitchen that meets your needs.

00:17:17: so it's a bit hard to find... The cost to make a repurposed kitchen fit exactly in your project might cost more than buying a whole kitchen.

00:17:28: But

00:17:30: even for you to selling it, because you've already removed it.

00:17:33: You already transported it.

00:17:35: unless you actually have a buyer before removing from the property your own cost is already in it.

00:17:44: It's not all that worth

00:17:45: it That's right!

00:17:47: Two shipping like one for removal and then one for whoever ends up buying it plus storage In between.

00:17:52: And as I said The market price of these are few hundred thousand yen.

00:17:57: If you're into business or doing It's it makes sense.

00:18:02: for when you're a showroom, You have these big packaging all the boxes.

00:18:05: All this stuff ready because they really complex to box.

00:18:09: The people that do what?

00:18:10: They've got warehouses full of stuff and there isn't an individual like people whose businesses are not bad Not logistics And no warehousing which is like in a blanker and trace as well.

00:18:22: You don't...it too hard To Do.

00:18:26: Even people like Anton and Shu.

00:18:30: they'd be working on what maybe two three houses at the time not more than that.

00:18:34: so What?

00:18:36: how often will it be?

00:18:37: That they need exactly that kitchen.

00:18:39: At this moment Exactly,

00:18:40: I mean It's kind of more trouble then its work.

00:18:44: Yeah.

00:18:45: So that's why i'm saying Like if we do have a project We might use it all.

00:18:51: Yes If Not Not a specific stove.

00:18:56: My client, we bought for our clients and she changed her mind is that it was sitting in my storage four two years before somebody else wanted to get specific type of stuff?

00:19:12: So I mean its just not so easy!

00:19:23: Ah, Jesus Christ.

00:19:24: I still have two Conor or two stoves that he bought in twenty-twenty-two.

00:19:32: I'm dealing with a pharmacist now because the Nippon... Sorry, Nippombridge.

00:19:35: The other company that we have does like.

00:19:38: We manage businesses on behalf of people and one of the more popular business is these days as a pharmacy And there's one pharmacists who just stocks up on medicine and we keep like saying dude There's an expiry date in this things you can't keep them for more than a few months.

00:19:53: Yeah!

00:19:53: ...and they're doing inventory stock count.

00:19:56: Now it know its gonna be nightmare.

00:20:00: No, it's true.

00:20:00: It's for people think oh that's gonna be a great business?

00:20:03: It's not a great Business because you never know unless you really already have a buyer For an item Before you remove it from the property.

00:20:14: It' s Not-it is not a profitable thing to give.

00:20:18: but if But its A good way someone who has DIY To pick up some stuff Right,

00:20:24: like

00:20:27: if you know which end of

00:20:29: the

00:20:31: hammer could use.

00:20:31: Yeah yeah oh yes The DIY guys they're the ones that will buy on Yahoo auctions Like even myself.

00:20:35: right um I got my um redoing sort of the My apartment in my beach house and we're doing a kitchen.

00:20:42: So this kitchen that the guy is ripping out actually will fit well inside mine?

00:20:47: Like the size is right but the sink And the stove need to be swapped around Which means the cabinets can work.

00:20:55: But the whole countertop, yeah.

00:20:58: The countertop I need to order a new one of that and also the installation costs money.

00:21:04: so there's fixed costs with it.

00:21:06: So i can try to get it and then try to transport it myself but then...I'm still gonna have to pay for a new counter top And installation and it's not my ideal choice of color.

00:21:17: It's a pretty good like a beige So I'm already in the hole for a whole bunch of cash anyway, so I may as well just jump on yahoo and find one if i do want to go that you know.

00:21:30: X display yes

00:21:31: One

00:21:32: that's already got the sink on the left side rather than on the right side but I don't have To Do That?

00:21:38: So yeah even this I can use The items In it part Of it But then the Frankensteining of it and in a trade person who comes to put it together, but ooh this connector is missing.

00:21:48: This connection has gone And that's another special order vis-à-vis That.

00:21:54: you are waiting two weeks for For one part

00:21:57: and no warranty There zero warranty as well.

00:22:02: I can't do that with clients.

00:22:04: personal project Yes, but like there will know why he put that into client house and say we're gonna warranty a used kitchen.

00:22:12: We don't give warranty on anything that actually we have not even purchased.

00:22:18: That I cannot take out of from a supplier or maker because... I love when customers tell me, oh i'm gonna buy this myself.

00:22:30: And like honestly over the summer... ...I tried to be nice with somebody and allowed them do a bunch of things.. ..and then it's like why is not working properly?

00:22:39: Because you bought a damn cheap thing!

00:22:43: Somewhere where I told you NOT TO BUY THINGS AND YOU STILL WENT THE HELL, YOU STIL BOUGHT IT AND NOW YOU'RE COMPLAINING THAT IT'S NOT WORKING.

00:22:51: So It's only a headache.

00:22:53: So do you want to deal with that headache or can you fix it yourself if it gets bad?

00:22:58: No, at the end of day they all end up going and complaining about the renovations company.

00:23:04: so yeah we do love when clients buy those things off any auction

00:23:14: change the kitchens in their property.

00:23:16: You know, you say it feels wasteful but you know Blank is doing this whole house redoing this whole House now if just to put into perspective we spent a hundred million yen on our house.

00:23:26: so another five million Yen should make it.

00:23:29: how do like?

00:23:30: It's not actually outrageous right going from zero to five million and go huh!

00:23:36: Is that an necessary change?

00:23:37: maybe no.

00:23:39: By the time we have this Sunday, I think that kitchen will be in place and when i show you guys the kitchen.

00:23:49: I'm like oh my god honestly!

00:23:52: That thing is so

00:23:53: gorgeous!!

00:23:54: So

00:23:54: gorgeous!!!

00:23:55: I had an amazing cabinet maker...and just

00:24:01: beautiful.

00:24:02: Yeah,

00:24:06: so I mean the kitchens we make right now for clients when they do have that time because it does take two to three months.

00:24:13: But then did you have a time to wait for the kitchen?

00:24:17: The kitchen will be made by now for client is everybody's dream.

00:24:21: It's gorgeous!

00:24:22: What

00:24:23: has been a thing Blanca You mentioned last summit and you mention renovation costs in waiting times are getting longer as that being still extending.

00:24:32: No, no.

00:24:33: Mostly it's already back to normal but almost back-to-normal.

00:24:38: so It used to be two weeks for like unit baths.

00:24:42: now its about three But during that bed time when we had the last one was six or eight weeks.

00:24:47: So now is a custom made.

00:24:56: price wise It's almost the same.

00:24:58: If you would get a kitchen from me, that it is gorgeous kitchen and you'd be getting middle class from clean up The middle range not even the most expensive range but in the mid-range You are about on the same level.

00:25:12: Okay

00:25:13: So...

00:25:15: A few million yen

00:25:17: Few million yen?

00:25:18: It isn't an end yet But you'll have a gorgeous stone top Caesar stone tops.

00:25:24: I'm talking bars, you know like bar table.

00:25:27: Everything is customized fit it exactly to your kitchen and even the drawers.

00:25:34: You'll go when you will tell him oh i want here...I want this..i want that Like a client.

00:25:39: now she has very specific She has a million yen coffee machine in her kitchen.

00:25:47: So there are grommets That have to go away.

00:25:51: It's very detailed kitchen.

00:25:54: Well, I can't wait to show it.

00:25:56: That kitchen is gorgeous!

00:25:58: How are

00:25:59: you?

00:25:59: A

00:25:59: million-yen coffee machine... wow!

00:26:02: I'm thinking about a million yen workstation that goes back and you put your screens up here.

00:26:08: You can lie down at work but the millenium coffee machine is beyond me!

00:26:12: I hope they'll make me coffee in

00:26:13: it because i am curious how that coffee will taste.

00:26:15: coffee

00:26:21: and cappuccino because there is specific a milk cooler.

00:26:22: you

00:26:29: know I mean the whole thing was like one point something so

00:26:36: nice.

00:26:37: yeah.

00:26:39: So beautiful kitchen, so i'm looking for...I'll show it to you!

00:26:42: It will be in place during the summit, so I'm planning to have a little shameless pitch for my kitchens.

00:26:51: We were talking about Matt's presentations being very engaging but i love your house porn presentation Blanka.

00:26:59: you showed them most beautiful designs!

00:27:04: Yeah no we do some beautiful design and they are great designers.

00:27:08: right now not everybody appreciates it No, so even with like the bathrooms and the kitchen specifically.

00:27:23: Those are things because I love those.

00:27:25: So that comes from my heart to play a lot about it.

00:27:29: Um i went to a house.

00:27:31: um It's sort of friends holidayhouse And having looked they just under renovation and I walked in and I go into the bathroom and its this amazing tile, like non-sanded.

00:27:45: Other stuff is sort of standard in IKEA kitchen and

00:27:47: stuff.".

00:27:49: I looked at the bathroom, what the hell?

00:27:51: This bathroom was so different high level compared to everything else in their house!

00:27:57: What the

00:27:58: hell?!

00:27:58: Where did you come up with this?

00:28:01: How's he seen his

00:28:01: house?".

00:28:02: And she goes oh yeah... Some lady named Blanka did it.

00:28:07: That kitchen,

00:28:13: she wouldn't let me do the kitchen.

00:28:15: so if she didn't do the Kitchen herself... Yeah

00:28:18: Ikea Kitchen but the bathroom like yes.

00:28:23: But unfortunately that project is giving me a lot of headaches.

00:28:29: Tracey what's the fensiest thing

00:28:30: you have to be in the same sentence?

00:28:32: The

00:28:34: bathroom,

00:28:34: nonetheless the bathrooms gorgeous.

00:28:37: Yeah I do know those photos that but that bathroom is gorgeous.

00:28:40: so what were you going to ask me Ziv?

00:28:42: Um i was wondering what's the fanciest thing that you've got in any of the properties that you're managing?

00:28:47: your um your minpaku property Do have like a million yen coffee machines or anything like that.

00:28:53: No I'm actually really proud of working with what's there.

00:29:00: So one of my places, the whole house design was centered around... The original cabinets that were in their house which were pressed metal Sorry they're metal and like powder coated And the colour is Tiffany blue Tiffany blue.

00:29:19: and then the handles were like mother of pearl blue, a pearly thing.

00:29:27: So I was like well they stay but the counter and it was all rusted through.

00:29:34: It's like metal sink.

00:29:35: this house had plants growing up throughout the floorboards.

00:29:40: so you know i spent most last years getting these ones out But I have to keep my original vintage.

00:29:49: I'm about vintages right?

00:29:52: working in vintage places and just giving houses.

00:29:55: um, you know that like

00:29:58: I want

00:29:59: my guest to be able To stay in something.

00:30:01: That's got a bit of soul and a bit Of personality and not to be Just a cookie cutter.

00:30:07: You know Cookie cutter, you Know service department?

00:30:12: II mean Japanese houses are just so quirky.

00:30:14: i try to lean into that A little bit mainly because they're cheaper then.

00:30:18: Um, you no get like a new build or their cheaper than And also, they're not in demand.

00:30:25: Japanese people don't want them.

00:30:26: but I really want because I wanna lean into and put some vintage textiles on the walls This Tiffany blue powder-coated metal kitchen cabinet...I've got a new countertop on it so that I can actually put new tapware.

00:30:43: But yeah..I had to stay with this design of the color.

00:30:48: So

00:30:49: that's a color palette you're working with

00:30:51: in this case?

00:30:53: I went a bit silly because when we do renovations for like Mimpaku, You've got to have fireproof wallpaper and so i could spend the same amount of money getting plain old boring white wallpaper but design in one room and I've gone like, you know orange-and-brown in another room.

00:31:19: And...I've got a bit wild because it's the same price.

00:31:23: if you go through that big books for wallpaper The Fireproof Wallpaper You Know It's the Same Price Whether You Go Plain and Boring or Another Beige House and or go a bit silly.

00:31:42: I don't have the taste level that someone like Anton has, he's got real aesthetic.

00:31:47: That's your Pandy thing is it really look?

00:31:50: And you've gotta know what are doing with that because its subtle.

00:31:56: I'm not subtle.

00:31:58: So, i like to try and have something especially that's going to jump off the page as you know in a...you know because i'm marketing..i need that hero shot to really be distinct and interesting.

00:32:11: um so- i love the design of the houses that i've stayed!

00:32:13: You put me into two of your houses so far?

00:32:15: And i loved the design on those.

00:32:17: yeah

00:32:17: like i tried to bring out the personality of each property and work with vintage textiles.

00:32:25: they're really cheap, you know.

00:32:28: And I can get something looking interesting without feeling like it's IKEA because IKEA is the same world worldwide...I want something with a bit more interest and soul than that but still has to be functional.

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00:35:01: What's most expensive thing?

00:35:03: In one of my properties I think Yeah, there's a couple of really cool dishwashers in one of mine or the new cooktop that has like the built-in microwave underneath.

00:35:21: That's pretty fancy.

00:35:23: but yeah I'm all about to vintage.

00:35:26: oh!

00:35:27: That particular one has vinyl record player and it's got you know vintage records in there as well.

00:35:37: let guests get.

00:35:40: I think kitchen appliances.

00:35:42: in generally houses like it'll be a bathroom if you have a fancy bathrooms.

00:35:46: So we can uh, Like blanket gets big to that a fan.

00:35:49: Like bathrooms can really go up in cost If you spend a lot on that and kitchens are kitchens as well And there will be either the countertops cabinetry but kitchen appliances.

00:36:00: so probably my most expensive thing Would mean my kitchen appliances?

00:36:04: So in my house i've got a gaga now oven which is a big.

00:36:09: We're sitting in an oven.

00:36:13: Pull up a little photo, I don't know if you can see it there but it's another one like that?

00:36:17: No!

00:36:17: Yeah,

00:36:18: yeah so nice things

00:36:19: about the oven.

00:36:20: Yeah and they are like eight hundred dollars probably maybe a million yen.

00:36:23: now i'd say The Oven would be If You want to buy new retail And then AEG-IH Stovetop.

00:36:33: So flat black stovetops and

00:36:37: Mealod

00:36:38: front-open AEG dishwasher.

00:36:41: I put an AEG in my house, it was the hill i was going to die on because Panasonic and whatever they wanted me to put into that stupid draw based.

00:36:59: Small.

00:37:00: And no!

00:37:02: Being really pushed all sides like oh you're being difficult or challenging?

00:37:06: I'm spending like one point five million dollars.

00:37:10: Like you know, i'm going to have my dish...I sacrifice the oven for the dishwasher but it's something that we use every single day and It is a big agey And We've used it everyday for eight years and its just been a dream.

00:37:27: so yeah..and it was expensive.

00:37:29: Tracy,

00:37:34: I think you have Miele.

00:37:35: You don't...you have AEG?

00:37:38: Yes i have an AEG.

00:37:39: yeah..i've Miele in one of my other properties but um

00:37:42: okay

00:37:43: no uh-I

00:37:45: did the same with mine The Panasonic and it's a Panasonic standard kitchen that housemaker has And so I basically had to forego the warranty.

00:37:52: they said look if we like Panasonic will not warrant Warranty your oven and your dishwasher It's not standard.

00:37:58: Yeah In there.

00:38:00: And I said, well i guess...I don't get a warranty.

00:38:03: Yeah!

00:38:04: I have this issue every time I'm doing Kitchener for Foreign Client because they always want an oven and they want the sixty-four size dishwasher.

00:38:19: that's basically the issue of free time I have.

00:38:23: even worse is if you wanna gas gas stove top, because to connect the gas stove with a full-size oven in Japan impossible.

00:38:34: they will not do it for you.

00:38:35: Because then the gas and the oven have to be from the same maker but there is no Japanese maker that we'll do this.

00:38:44: so And then of course, like right now they already do space for sixty centimetre dishwashers.

00:38:53: But oven is a huge issue for them because that's the specialized cabinets and I think Toyo kitchen does it?

00:39:04: They actually also have Gaggenau.

00:39:06: but you are looking at ten million yen kitchens onwards.

00:39:11: Yes yes!

00:39:12: Because they will let you pay.

00:39:14: They will let you pay through your teeth for that specific cabinet and still don't want to do it like on top of each other.

00:39:21: But if you're doing IH, Stoftop and an oven You can-you Can Do That but yeah...

00:39:27: It's still an issue!

00:39:28: I love these conversations.

00:39:29: My clients are buying ten million yen houses And condo units or less and you're installing ten million in kitchens?

00:39:37: Yeah That why when people like with the up yet

00:39:39: Sometimes not always Trust me Not Always

00:39:42: Yeah, but when I get clients you know i get some inquiries saying oh i've got a uh yeah.

00:39:47: I want to buy this.

00:39:47: they have a whole list of stuff and they'll email And said my budget is like forty thousand us.

00:39:54: I think um in Tokyo

00:39:57: send them to matt or to us Or actually for that matter.

00:40:00: yeah

00:40:01: Like there are things spending a bit of time with Um.

00:40:06: A little humble brag.

00:40:07: Actually We're.

00:40:09: we're actually an accredited Akiah Hub steward board.

00:40:15: So we did their onboarding and they're training, it's a stewardship program and I'm probably stealing the thunder from the seminar...from the summit.

00:40:30: yeah this Stewardship Program is incredible!

00:40:34: And so where one of these stewards who go and look after the properties that live abroad, they've got their properties.

00:40:45: They're not doing it for monthly rentals or anything like that but there needs someone to look after it while they are not in town.

00:40:52: so we're in charge of doing and this is a really good program.

00:40:56: I'm doing work with my male mate John Cross Doing collaboration as well.

00:41:07: We do the property management for our owners who do live abroad.

00:41:12: I mean, it's everything that we're already doing but just without the guest component.

00:41:17: so um yeah So that's what we've added to out little portfolio of skillset.

00:41:30: That's fantastic

00:41:31: Yeah and its really interesting because i get to play in houses But they are selling a lot.

00:41:39: Um, and it sort of brings up a question though.

00:41:41: I've sort of wondered with all you know the number Of people buying from abroad.

00:41:50: It's basically an import a net import of money So that there are people bringing in.

00:41:55: People are bringing in money from abroad to buy property That they can't take away with them With capital that hasn't been earned or generated within Japan.

00:42:05: so it's almost like a net input of money into the Japanese economy, and I'm wondering what those implications are.

00:42:22: And if anyone had any thoughts about people who bring in money from abroad... to buy property here.

00:42:30: You can tell

00:42:31: you that foreign direct investment in Japan's real estate market was, I haven't looked at last year's number but it was standing at twenty-to-twenty five percent of the investment market?

00:42:43: But i don't think they calculate holiday homes...I think that is actual investment as an investment properties.

00:42:49: So thats

00:42:50: more like institutional investors and funds

00:42:54: or individuals who are putting money together profit, whether it's rental income or capital appreciation of whatever the cost may be.

00:43:02: But not people just putting in money for holiday homes?

00:43:05: I wonder if anyone is calculating that... No

00:43:07: but i don't think it moves a needle!

00:43:10: All the money coming into buy these properties with these homes won't even move their needles compared to what institutions are doing so.

00:43:17: well sort of you know.

00:43:21: or like the Chamber of Commerce events where they do road shows, from Australia.

00:43:25: And so we have a lot of Australian large developers at land leaks and whatnot will come in say okay these are big projects that they're doing in Sydney or Melbourne.

00:43:36: They want to get hundreds of millions of dollars investment for Mitsubishi right?

00:43:42: To come on through this joint club in Australia and vice versa.

00:43:47: large massive developments, like we see like Roppongi Hills for example.

00:43:51: I don't know if that's got foreign investment or not but these this massive amounts of money that's getting moved individual sending money over is not moving the needle.

00:44:01: even now you know We talk about it with real estate.

00:44:04: what's really happening?

00:44:04: What keeping the pressure low on the yen.

00:44:08: oh again keeping the yen lowest all the carry trade as people are just Not even buying assets.

00:44:12: they're just Getting cheap yen and putting in a US dollar for the higher interest yield.

00:44:17: That's why they say, you know raising their interest rates shifts money.

00:44:21: if the interests are higher in one place than another The money moves there to get a better yield and that does a lot more.

00:44:28: then selling a few Akiyo.

00:44:33: Yeah I can imagine.

00:44:34: yeah oh i mean it's not Akiya I mean Tracy's customers are clearly buying central Tokyo or suburbant.

00:44:40: Yeah,

00:44:41: I mean.

00:44:41: but even that no it doesn't...I don't think it moves the needle.

00:44:44: Well

00:44:45: i would be interested in just you know because the numbers under the radar.

00:44:54: No, I think that's what the Keiichi Suns and new legislation is trying to clarify right like who's buying in?

00:44:59: where are they from?

00:45:00: And why do they buy?

00:45:01: yeah There's no housing shortage all right it's like these houses or you know They're cheap for a reason.

00:45:09: Japanese people don't want to buy them.

00:45:11: um, and there's a lot of towns that are Like that are kind of You know Got dying almost so Yeah It's just uh really interesting time too.

00:45:24: Yeah, I am very cautious like thankfully the Akia guys who we work with.

00:45:30: Any of the people will speak at The Summit.

00:45:32: they always do a good job in explaining to their client If it's even the right choice for you or not.

00:45:38: most what?

00:45:39: They do is have To talk People out of the idea that It's Even The Right Choice For Them

00:45:42: Exactly

00:45:43: Because They're Gonna Make A mess Of It.

00:45:47: You Might Buy Property for you know Like Fifteen Mill Or Something and then um that you.

00:45:52: but it'll need some, it will need some reno and it also needs a maintenance.

00:45:56: You know so It'll need someone like me who need to pay Someone Like Me And I'm not cheap.

00:45:59: Um uh To send my stuff around

00:46:04: The scary part of it like where i see the risk in having this sort Of uncontrolled is?

00:46:11: You Know like.

00:46:12: just do A particular scenario.

00:46:14: Just say if a foreigner comes and buys a place for you know A few million yen Or five, say ten million yen.

00:46:21: They've bought it.

00:46:22: It's out in the middle of nowhere that haven't been educated enough about how much work is actually going to entail.

00:46:28: And they're like wow this is too challenging Too tough too costly.

00:46:32: and then I go you know stuff but i'm just gonna leave it.

00:46:34: i'm not even Gonna follow up with them.

00:46:36: now we've got This Akiya In The Middle Of Nowhere That Used To Be Owned By Japanese?

00:46:42: And There Was a Trail.

00:46:43: Then It Could be Resold or What Not.

00:46:44: Now Its Owned by Foreign Person Who Is Someone In Another Country who it's just gonna be either.

00:46:51: maybe like not looked after, not taken care of.

00:46:54: but they're going to good luck trying to track the owner down.

00:46:57: There is no contact information or that it's hard to contact them.

00:47:01: They've disappeared off the radar.

00:47:03: It's tough enough in Japan to have an asset.

00:47:07: The owners are lost because inheritance and dilution for owners to do it.

00:47:12: Imagine doing this with a foreign owner.

00:47:18: So my concern with, you know people buying up these Akiya and not knowing about it.

00:47:24: And then saying look I'm willing to just lose a few million yen of investment or the few million that i've spent is not worth a headache?

00:47:31: And they turn around them continue their life in whatever country.

00:47:34: now You're gonna have this assets that are no longer.

00:47:37: we don't know the owners Of them.

00:47:39: well japan doesn't know The owners of them

00:47:46: As long as they're managed and that's why, like the Akiahub people are doing their pre-purchase education piece.

00:47:58: And most of them haven't even seen it before.

00:48:06: so then the title has changed but goes into a stewardship program.

00:48:12: They're very, very ethical and good.

00:48:17: But they are only wanting to deal with people who were kind of serious about what their doing?

00:48:23: Yeah I've had a client complain that he spoke to them... He said there was a bit snobby or he felt condescending.

00:48:34: but when i spoke to him.. And you know ..they looked over the call logs didn't really know what he was getting into and it's our job to explain that to them before they go ahead make any mistakes.

00:48:49: And like, yes we do the same thing correctly!

00:48:52: Yes

00:48:52: I've had a different case right now...and actually have two of those this year That clients were in process buying house.

00:49:03: We've already went through the initial walk-through, we planned their renovations.

00:49:09: They already had money in the escrow.

00:49:14: they already paid to agents and before the handover of the keys, the buyer canceled the sale.

00:49:26: despite the seller not the buyer, the seller cancelled the sell.

00:49:29: Despite a seller accepting the client's offer Everything was literally all agreed on, signed money in the escrow.

00:49:42: But the handover date was like a month or whatever.

00:49:48: and week before the hand over date the seller said oh no I found Japanese buyer.

00:49:54: Well that case the seller would need to compensate them by ten percent.

00:49:58: The

00:49:59: penalty fees right?

00:50:01: Yeah

00:50:03: I have not heard that because they were

00:50:05: like so unless

00:50:06: They were doing both on the same day sometimes.

00:50:08: They do no deposit and just everything on the Same Day,

00:50:12: I Don't know.

00:50:14: but there are very shocked That even in this stage to the seller was able to pull out.

00:50:21: So general contract said almost all Japanese real estate contracts at the same template And had the same conditions?

00:50:28: So i'll Just sort of explain how they Are.

00:50:30: In General When you go under contract, You pay a deposit and in Tokyo we generally do five percent of the purchase price.

00:50:38: Some places are even ten percent And you pay that as a deposit.

00:50:42: now In the contract it says if either party to buy or sell I want to break the contract Wanted cancel within a certain time frame?

00:50:51: There'll be date.

00:50:53: on the contract It says you can cancel by this date.

00:50:58: The cost is the deposit, you forfeit that deposit.

00:51:01: So if I put three million yen... Oh so just say it's a hundred-million property and i pay five million yen deposit.

00:51:08: If I choose to cancel?

00:51:09: I can cancel And forfeit my deposit.

00:51:12: this the seller kicks my deposit.

00:51:15: However, if the seller cancels they must return my deposit and pay the same amount as a penalty fee.

00:51:23: That's why deadline and that's not even considered a breach of contract that one of the regular functions of the contract is how to cancel.

00:51:31: If you cancel after that date, then there may be... It will say it's either deposit amount ten percent or twenty percent.

00:51:41: so ten percent

00:51:42: could be double.

00:51:43: That's right.

00:51:43: yeah

00:51:44: maybe ten or twenty per cent.

00:51:46: and if he canceled after that up to this time its ten percent for example.

00:51:51: And so if a seller cancels they must return your deposit plus it's at ten percent penalty fee.

00:51:57: So what I suspect is if there's two kind of scenarios that can imagine this happened, right?

00:52:05: Either the deposit was only maybe a hundred thousand yen or two-hundred thousand yen.

00:52:08: It wasn't any small deposit which isn't strong enough to secure it.

00:52:13: and so the seller said well i'm going to cancel one fine!

00:52:16: I'll pay for the two-Hundred Thousand Yen Cancelment.

00:52:19: Or they weren't actually under contract.

00:52:22: yet They had agreed everything Contract signing.

00:52:28: so there's still no money down.

00:52:30: No, but this one.

00:52:32: There's one more kind of con.

00:52:33: sometimes especially we see these for very cheap properties.

00:52:36: So you're probably not that probably hasn't crossed your desk that often Same day know deposit.

00:52:42: everything is done on the same day You sign new pay?

00:52:47: Yeah They had prepared, maybe they sent the money if it's a foreign person.

00:52:59: Foreign buyer obviously is by that he sent them any to escrow?

00:53:03: Yes!

00:53:03: The money was in escrow.

00:53:05: yes but

00:53:06: It wasn't... But the contract has not been signed and the money have not been transferred to the seller.

00:53:11: People sometimes get confused because their offer sign as well application form for purchase offers also being signed.

00:53:19: That's not illegally binding document.

00:53:22: Yeah,

00:53:25: that's what actually happened to my clients twice this year.

00:53:28: And they were already so sure because like they've accepted our offer we transferred money to the escrow.

00:53:34: everything was ready-to-go and now... They found a Japanese buyer.

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00:54:31: But

00:54:34: we want to get everything lined up.

00:54:40: We wanna get financing and pre-approval all lined up, make sure that they've seen enough properties so that they know in their own mind what the right property looks like?

00:54:50: And that way when you see the right place from when you decide this is a right property until your sign of contract then it's limbo time because there could be another cash buyer or more attractive buyer For example, it doesn't need financing.

00:55:07: Doesn't have.

00:55:08: maybe certain conditions that you may have can maybe settle quicker a whole bunch of reasons That can do the job a lot more quickly.

00:55:16: So if you find a place now I say we want to sign the contract ASAP.

00:55:20: once a contract is signed We're pretty safe.

00:55:23: so when you see the property that you want?

00:55:25: We need to move really quickly.

00:55:27: That's a rush rush rush.

00:55:29: When you sign the contact pay-the-deposit then you can relax.

00:55:33: Usually there have been some last-minute cancellations on us as well, but it's quite rare.

00:55:38: yeah

00:55:40: I

00:55:41: don't want to wait two three weeks to sign a contract.

00:55:46: so maybe that might be good kind of like notes too.

00:55:50: talk about at the summit Foreign buyers, they always think like oh we have time We can still like you know or that.

00:56:00: We can negotiate.

00:56:02: Let's go back and forth let's go beckons for it.

00:56:04: And you know in Japanese they're like

00:56:07: my.

00:56:09: yeah I don't want to.

00:56:09: Yeah on that.

00:56:10: the one that catches foreigners a lot is their inspection.

00:56:16: We wanna do with discounted offer and the condition of an inspection And you know, like oh it's just standard in our country.

00:56:23: We do inspections and I get that but especially with a used place depends on the condition.

00:56:30: But once you do that then until you sign their contract see generally in Japan You do the inspection?

00:56:37: And you and the buyer has to pay for the inspection.

00:56:40: you doing the inspection.

00:56:41: after the inspection You decide if you want to go ahead without offer price or not.

00:56:46: correct so this contract?

00:56:47: So you've just sunk the cost of an inspection.

00:56:50: Yeah, and sometimes they'll find another buyer while you're waiting for the report.

00:56:55: right so you can You commission the inspection.

00:56:59: You paid for it And why are you waiting?

00:57:01: For the report to be produced?

00:57:02: They get back to you say oh sorry we found an other by.

00:57:04: he doesn't need an inspection see ya yeah

00:57:07: because Japanese they don't like things that are complicated dead arm and looks like and and They also there not a big fans of negotiating

00:57:18: But still, it's way more Mendocai when you suddenly find out that they have to fork the price of their property again for foundation repairs or whatnot.

00:57:26: Yeah but

00:57:30: I mean... It is difficult!

00:57:31: This particular case happened twice this year.

00:57:34: so yeah.

00:57:36: and then funny enough like i had clients who buy houses and don't understand its location.

00:57:43: And then they realized like, oh but I bought this.

00:57:46: Then i need to renovate it?

00:57:48: I'll never get the money back from rent.

00:57:52: Well yeah you bought in the middle of nowhere Like literally Inaka.

00:57:58: One Of The Houses was opposite cemetery in a village nowhere.

00:58:07: and then he's like, oh but I'm not gonna get much for rent.

00:58:10: Did you know do your due diligence?

00:58:12: And find out rental prices in the area?

00:58:15: We're actually

00:58:17: just doing up our deal analysis system that we've showcased last time.

00:58:27: Deliberating now is in some cases where somebody puts a vacant Akiah on the countryside and they want to get an investment ranking.

00:58:34: We look for comparable properties for rent, but there aren't any.

00:58:38: like nobody rents this area.

00:58:39: it's all farmers who own their house.

00:58:42: we can not even give you an investment rank because no one will rent from us.

00:58:47: Yeah, yeah.

00:58:48: And they don't understand that.

00:58:49: and then it was like oh I'm gonna renovate after i'll find a tenant.

00:58:54: well buddy first of all nobody's going to rent.

00:58:57: even

00:58:57: go on ago and have the look into unrenovated property and Then if they do decide you want to rent today not gonna wait for The renovations so its kind of.

00:59:08: it's just funny.

00:59:09: people honestly Do not understand what?

00:59:11: They are buying and there is very few Honest real estate agents like you guys that would give them even tell.

00:59:19: then nobody's gonna rent from your here because they just don't tell them.

00:59:22: They told them not knows what or You know, they tell them their location

00:59:30: is great.

00:59:30: I think i'm going to mention that in my talk this time around.

00:59:33: Like, i'm not gonna name any names but i'm gonna tell people... look even some of the people who are here at The Summit and they help you buy houses will NOT ALWAYS TELL YOU EVERYTHING THAT YOU NEED TO KNOW!

00:59:47: Right?

00:59:48: It's a very different market And it is not your agent job to educate you.

00:59:52: Some of us do that.

00:59:53: But A LOT OF

00:59:56: THEM WON'T like to be kind of kind to the clients that have done this, they will look and say I want to buy these property.

01:00:07: And then do their own level of assessment?

01:00:09: Then go to an agent who says okay great you said oh yeah i went down investment.

01:00:14: he goes.

01:00:14: well im not here for your investment advice.

01:00:18: You wanna buy it.

01:00:19: my job is helping with transaction.

01:00:22: Like do some research on what the rentals will be like.

01:00:26: I don't know, personally i don't feel it would be great but that's the extent of it.

01:00:29: you make your own financial decisions about what you want to do.

01:00:33: But if you really wanna buy it?

01:00:34: You love it fine!

01:00:35: You can go ahead and do that.

01:00:37: um...but remember we've been in industry for each of us at least a decade or more..I think i'm only fourteen years myself now.

01:00:47: So we've experienced this.

01:00:49: We have done our own investments And gone through them.

01:00:52: these clients that this is house number one.

01:00:54: This is their first step of the learning, I'm sure we've all had investments are like in hindsight me now In it?

01:01:02: Like you know a decade and a half in the game i'll go back to yeah no probably I wouldn't do it the same way as I did fifteen years ago with my investment.

01:01:11: oh stage

01:01:13: one.

01:01:13: so although

01:01:15: No, no.

01:01:16: I get it but you can't blame the agent for not telling You what questions to ask?

01:01:22: It's like either educate yourself Exactly well either educate Yourself on a platform Like akia hub For example or hire a consultant somebody like ourselves who comes in and is Not an agent Who's particularly attached To this sale But they're just giving you advice And we'll tell you What questions to Ask Or will teach you.

01:01:44: Don't assume that things work the same way they do in your country of origin.

01:01:49: The

01:01:49: real estate agent is your best friend and he's gonna tell you to be diligent, no matter what you're doing life!

01:01:58: And this one is just like honestly over-and-over.

01:02:02: I'm learning these things talking to clients... They always go oh but i thought it was told by whom?

01:02:10: No, all they've

01:02:14: been watching too many YouTube videos of like... YouTube

01:02:16: videos?

01:02:17: It's

01:02:18: you.

01:02:19: To be fair people like Shue and Anton make it look easy but that just because they know what their doing right?

01:02:26: Yeah!

01:02:27: But how often do we have the client with some information he got off ChedCPC?

01:02:41: And

01:02:42: if you formulate the same question, but just sorry.

01:02:47: No we lost you there for a minute.

01:02:48: You're back now?

01:02:50: Ah!

01:02:50: Sorry Yeah.

01:02:52: So I mean like i get clients that they come with information from JetGPT and well If ask the same questions Just formulate it differently.

01:03:03: It will give me exactly opposite answer.

01:03:07: Let's just get their information.

01:03:10: Honestly, ChedGPT is everybody's best friend now and unfortunately it's not doing anybody any favor.

01:03:18: so... It's

01:03:20: all in the prompt.

01:03:21: yeah sorry Tracy are we gonna say?

01:03:24: Oh I was going to say that I think the language thing is as well.

01:03:30: like people you know if they find an agent who it does speak English um, They put a lot of faith in that particular Agent and And they put a load of faith In the information That they're getting because they can't actually ask that many extra People.

01:03:44: Because You Know especially in some Of these rural areas there's hardly any agents.

01:03:49: That do Speak english.

01:03:50: so Um thats why its always better to pay someone who can advocate for you, rather than have the hubris of thinking that you could do it yourself.

01:04:03: You might think your saving a few bucks but... It's a gamble!

01:04:08: I'm not saying its not going be successful.

01:04:13: we just see the horror stories and we don't want that right?

01:04:20: I think

01:04:21: all my clients have success stories, but i hear about horror stories.

01:04:28: You're a bit unique and I think Tokyo specifically because of its international nature lends itself to you know there's a bigger variety of potentially good people versus bad people to work with... But like Tracy was saying if your buying in Inaka and theres none or maybe one kind of half English-speaking agent, your options are pretty limited unless you get a consultant or again educate yourself.

01:04:55: I think

01:04:56: Blanca said she has to go right?

01:04:57: Yes that's

01:04:58: fine!

01:05:00: I just have one question left.

01:05:02: it was like i'm having a helluva deal getting foreign bank wires in.

01:05:07: so how are?

01:05:13: I'm just... Bankwise?

01:05:14: What do you mean bankwise.

01:05:16: Well,

01:05:16: i have people that are paying sort of five months six month rentals in advance and my bank is just ...you know ..I've paid for the international bank wire waiver And they're still making me jump through hoops.

01:05:33: It's becoming a real problem.

01:05:37: We've been with UFJ for international transfers from the get-go.

01:05:41: we opened our account when we started, so this is fifteen years ago and these days I mean they send us...

01:05:47: They're using

01:05:49: Vistation?

01:05:50: Yeah and they sent us a PDF to approve whenever there's an International Transfer coming in.

01:05:55: And that's it!

01:05:55: They don't even call anymore.

01:05:58: No i'm having to give like a whole kidney.

01:06:02: explain the purpose of transfer.

01:06:06: I get it, but its just like you know.

01:06:09: i thought ive paid for the waiver and to explain that im got a license to operate.

01:06:16: Its money laundering.

01:06:19: I get that!

01:06:20: But Im not

01:06:22: a money launderer.

01:06:23: Yeah no so its just KYC.

01:06:25: its more regulatory?

01:06:27: So I think Zivs ones easier because Ziv is okay its one transaction.

01:06:31: they are sending large sum of money.

01:06:35: There's one contract of sale for this, you know multi tens of millions.

01:06:41: But we do receive funds from management and rentals on other purposes as well.

01:06:45: but for the smaller amounts We use WISE and then it is just a domestic transfer where nobody contacts WISE or REVOLUTE or whatever.

01:06:54: Yeah so that...but its different.

01:06:56: So I think Tracy's one is Overseas Funds coming into Japan Right?

01:07:02: That's what that's a tricky part.

01:07:03: So I think when you have it, to purchase an asset

01:07:07: No both.

01:07:08: so for the big amounts like as its purchase is yes It's usually going to be International transfer whether direct or via something like OFX which can handle bigger chunks.

01:07:19: and then yeah i mean we don't know.

01:07:22: maybe ufj are just easier.

01:07:24: you know, take yes this is correct and then we just get it into our account.

01:07:27: so they haven't been an issue.

01:07:29: but for smaller amounts like you're talking about five six months of rent I would assume that's under ten million yen.

01:07:34: It's a roundabout ten million yeah.

01:07:37: So why do these days?

01:07:40: Um no not ten million.

01:07:43: yet it says about ten million.

01:07:44: so um

01:07:46: About a million i think right.

01:07:47: No no no no Ten million

01:07:53: If the originating account is an overseas-wise account...

01:07:59: No, it's just a normal bank.

01:08:03: But UFJ.

01:08:03: I've been banking with UF for like twenty five years but then when i went to open my corporate bank account and they were ...and you know I have Tokyo Family Stays that are newly incorporated.

01:08:15: this was when I was applying when it was newly incorporated.

01:08:20: And, you know I have the Minpaku license and everything.

01:08:22: they rejected me.

01:08:23: They were like well we don't want a Minpaka business.

01:08:28: I think

01:08:29: banking with my other company for

01:08:34: that's

01:08:34: been going thirty years.

01:08:36: so are you freaking kidding?

01:08:39: To be fair We're not a minpaku company.

01:08:41: When started from day one But things have been a little bit easier than two.

01:08:48: Now they're getting stricter,

01:08:49: you know?

01:08:50: Yeah

01:08:53: I had

01:08:53: the same problem with MUFJ when i was opening ArcReform.

01:08:57: They've also so...they've been big headache.

01:09:01: and but the international transfers is the same thing.

01:09:05: Every time we get an international transfer basically it has to show them quotation sign contract everything, licensed.

01:09:13: First time they wanted to see license all that stuff.

01:09:15: I mean Jesus Christ do you want to see like the size of my underwear?

01:09:20: We're

01:09:21: getting a little bit of that with the other company with Nippon Bridge where Everything is Newer.

01:09:25: it's about four years old now and we just get customers to open a wise account.

01:09:30: use Revolute.

01:09:31: You can invoice them through Square as well.

01:09:34: square is also domestic.

01:09:35: Why doesn't

01:09:36: like transactions over a million yen?

01:09:40: It's not true.

01:09:42: I knew it was wise with my

01:09:44: clients, if the originating account is not a Japanese account that's fine.

01:09:49: Yes But you've been... but doesn't hold

01:09:54: it?

01:09:54: Doesn't

01:09:54: like.

01:09:54: when you hold it Yeah!

01:09:56: You can set up automatic.

01:09:57: No, no.

01:09:58: You can hold it and then they'll send you an email saying hey... ...you've got over a million yen in your account.

01:10:03: but now because they realized that's an issue.. ..they have gotten automatic transfer facility where you can sign into your WISE account.

01:10:10: Yes And tell whenever I go over one million yen just transfer straight to my bank account.

01:10:23: Yes That is literally

01:10:32: what

01:10:32: we do now mostly.

01:10:33: So

01:10:33: yeah, no it's just frustrating.

01:10:34: I'm a legitimate business.

01:10:35: See you later!

01:10:36: Bye!

01:10:36: Yeah now its just frustrating.

01:10:37: as a legitimate businesses like what is wrong with Minpaku?

01:10:41: What do you mean?

01:10:41: Japanese banks are a pain in the ass?

01:10:43: Yes!

01:10:46: So anyway that was my gripe of today.

01:10:49: All

01:10:50: right, we'll see you all soon.

01:10:51: I will be off radar seventh to thirteenth but otherwise see very-very soon in Tokyo.

01:10:57: See ya later!

01:10:59: Bye bye!

01:11:01: So there you have it, a nice j-rep session I thought covering some pretty interesting topics.

01:11:06: And again if your hearing this before midnight, thirty September Japan time You might still be able to grab your discounted early bird tickets for the seventeenth and eighteenth October For The Japan Real Estate Summit In Tokyo or online hop over to summit.realestate.jp.

01:11:22: Secure those seats today.

01:11:24: But even If you didn't make It ,you'll probably find that they're more than reasonably priced regardless of That discount.

01:11:30: Now, we can't let you go without telling me about MailMate.

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