Getting over the depreciation culture?

[akiaji]

Thanks for everyone’s comments so far.

You guys talk about not buying new, but buying used. What things should I you look at when buying used?

Tahbsk again

Another advantage to used properties is that you are usually buying from the previous (individual not corporate) owner, so consumption tax does not apply. That is decent savings.

Most of my experience is with larger apartment buildings (マンション), so I'll share a few things from that perspective. Might be similar or different for houses.

If you have a reliable real estate agent working with you, they should walk you through all the pros and cons of that apartment. From my experiences, both personal and commercial, in Japan, I have found properties to generally be good with few surprises. Knock on wood!

If you are interested in the "investment" aspect of the property, the agent should be able to share buy/sell activity, including pricing, for the building and nearby area. This could give you confidence in the value you pay. i.e. you know that 3 months ago, somebody bought a similar property in the same building for a similar price.

[Tokyo]

Depreciation culture? Yes, there is sure to be depreciation if you buy a cheap place with an unattractive building in a distant, aging suburb.

But to assume that all property in Japan continually depreciates is just not true. If you invest in an attractive, central part of one of the major cities, prices have definitely appreciated. In good areas there will always be steady demand but limited supply.

This article states that the purchase price of an average manshon in central Tokyo has appreciated 70% during the past 10 years. Sure, that’s lower than some overseas markets but I’d rather be an owner than a renter under those conditions.

< https://japanpropertycentral.com/2022/0 ... -and-2021/>

[Haystack]

Depreciation culture? Yes, there is sure to be depreciation if you buy a cheap place with an unattractive building in a distant, aging suburb.

But to assume that all property in Japan continually depreciates is just not true. If you invest in an attractive, central part of one of the major cities, prices have definitely appreciated. In good areas there will always be steady demand but limited supply.

This article states that the purchase price of an average manshon in central Tokyo has appreciated 70% during the past 10 years. Sure, that’s lower than some overseas markets but I’d rather be an owner than a renter under those conditions.

< https://japanpropertycentral.com/2022/0 ... -and-2021/>

Big distinction here...

"Apartment prices across the greater Tokyo region have risen by as much as 70% over the past decade and 11% over the past year."

From your source. Which, has no direct link, just a vague citation.

[Tokyo]

Big distinction here...

"Apartment prices across the greater Tokyo region have risen by as much as 70% over the past decade and 11% over the past year."

From your source. Which, has no direct link, just a vague citation.

The following graph shows very steady growth in the average cost of a manshon over time, with some downturns for Lehman, Fukushima, etc. The growth is pretty consistent nationwide, but more pronounced in central Tokyo.

< https://sumamon.jp/mansion/social/kakaku-suii/>[quote][/quote]

What I would like to see is some evidence of the depreciation that is written about in this thread without any citation, link, graph or source, especially as it applies to manshons in major urban areas.

[mighty58]

Let's not confuse new build prices with depreciation. The first chart in the link below shows the average level of depreciation you're looking at for a manshon, based on how long you hold it.
https://sumai-step.com/column/article/2290/

[Haystack]

Big distinction here...

"Apartment prices across the greater Tokyo region have risen by as much as 70% over the past decade and 11% over the past year."

From your source. Which, has no direct link, just a vague citation.

The following graph shows very steady growth in the average cost of a manshon over time, with some downturns for Lehman, Fukushima, etc. The growth is pretty consistent nationwide, but more pronounced in central Tokyo.

< https://sumamon.jp/mansion/social/kakaku-suii/>[quote]

What I would like to see is some evidence of the depreciation that is written about in this thread without any citation, link, graph or source, especially as it applies to manshons in major urban areas.
[/quote]

These are prices for new construction.

[Tokyo]

Chuuko Manshon data is here.

< https://japanpropertycentral.com/2022/0 ... 9th-month/>

I am still waiting to see the depreciation stats for chuuko manshon in central Tokyo. I concede they lose value in rural Hokkaido or Kyushu but they are not where I initially proposed one should buy.

[Tokyo]

A couple of other graphs/charts also growth for Tokyo.

< https://www.globalpropertyguide.com/Asi ... ice-Trends>

Where is the offsetting evidence of depreciation?