Semi-Speculative land purchase?

[beanhead]

In general, with the population issues in Japan, I don't see land as an asset which will grow in the future.
However, there may be an opportunity for us to purchase a tiny piece of land next to our house.
A road will be enlarged, meaning that 2 adjacent houses to ours will probably be knocked down. It looks like the remaining parcels of land will be too small to build a house on. They would, however, extend our little plot of land, just giving us a bit more space for parking/small garden to the side of our house.

Does anybody have experience of a similar situation?
If the local authority can't sell it to a developer, would they sell it at a discount, rather than the standard market price?
And finally, what are your thoughts on whether this makes sense as an investment? My thinking is that if we decided to rent out our place in the future, or sell it, it could increase the value if it sits on a slightly larger plot of land...

It won't happen this year or next, but perhaps in 5 or 7 years, I think. So we have plenty of time to consider what to do.

[RetireJapan]

Don't know about investment, but if the plot next to my in-laws' place ever came up for sale we'd buy it. It's the only plot touching theirs, so I'd love to merge them

[northSaver]

Interesting. I wonder what the local authority would do with it if it were too small to sell? Plant trees perhaps?

I think something similar happened next to our property before we bought it. I remember the previous owner telling us that his house / business was supposed to be next to the main road after they'd widened it, but then someone built a long thin house / barber shop on the leftover land and blocked his access. He was a bit pissed off about it! We still have access from a side road of course, and a sign on the wall facing the main road that is over the barber's parking area (not obscured), so not too bad.

So yeah, I think I would try to buy it if I could. It will give your property access to the wider road, which might make it more valuable in the future. Someone might want to build a shop or restaurant on your land and use it for parking, signs, extra visibility, etc.

[beanhead]

Interesting. I wonder what the local authority would do with it if it were too small to sell? Plant trees perhaps?

I think something similar happened next to our property before we bought it. I remember the previous owner telling us that his house / business was supposed to be next to the main road after they'd widened it, but then someone built a long thin house / barber shop on the leftover land and blocked his access. He was a bit pissed off about it! We still have access from a side road of course, and a sign on the wall facing the main road that is over the barber's parking area (not obscured), so not too bad.

So yeah, I think I would try to buy it if I could. It will give your property access to the wider road, which might make it more valuable in the future. Someone might want to build a shop or restaurant on your land and use it for parking, signs, extra visibility, etc.

Not sure what they would do but my guess is it could be a quite lucrative small parking space.
As in your case, a long, thin house may be possible in the space. If so, and the bidding is competitive for the land, I think we would not be interested.
They will do the 'set-back' so that they can widen the main road. Hopefully what is left will be useless to everyone but ourselves...

[imaginatorium]

I don't think it would be "speculative" for you to buy it -- speculative would be someone else buying it, in the hope that some rich person/corporation comes along and buys your land for a "luxury development", then being prepared to pay anything for this extra strip.

I do know from experience (parents-in-law) that having part of your land bought for road improvements can be quite profitable, but I doubt that there would be any attempt to make lots out of selling a strip to you. I would be inclined just to go to the city office and ask them about it, since I imagine (not having seen a map) it would make obvious sense to join on to your land. I can imagine you finding it easy just to expand a bit. On the other hand, the next thing I can imagine is a lot of air sucked through teeth, and something incomprehensible about "planning", and it turning out to be practically impossible to sort out. In which case you give up, and get to use it for parking for nothing.

[TJKansai]

I remember seeing a 10-15sqm corner of land for sale by the city in our neighborhood. That sign was there for ages, but then disappeared. It seems to have been merged with the garden next to it.

We bought the plot next to us from a relative, mainly to make sure no one built next to us. We use it for garden/storage sheds/parking.

[DragonAsh]

The house next door to ours was owned by an older lady, sons long grown up and moved out. She had a stroke and is now in a nursing home, doing well but not able to live on her own. The house had been sitting empty for about 5 years; her kids didn't want to sell it while she was still alive, until it became clear she wouldn't be able to move back. Since they were neighbors, the sons told us first before it went on the market. We explained that we'd love to buy it but that we'd be tearing it down, did they mind? They did not. We now have a garden. Because it's now part of the house we already live in, our property tax went up, but not horribly so; we now pay about Y120,000 a year, for what is a very big plot.

Of all the things I didn't expect to ever do in Japan, "mow the lawn" was definitely at or near the top of the list....

[RetireJapan]

The house next door to ours was owned by an older lady, sons long grown up and moved out. She had a stroke and is now in a nursing home, doing well but not able to live on her own. The house had been sitting empty for about 5 years; her kids didn't want to sell it while she was still alive, until it became clear she wouldn't be able to move back. Since they were neighbors, the sons told us first before it went on the market. We explained that we'd love to buy it but that we'd be tearing it down, did they mind? They did not. We now have a garden. Because it's now part of the house we already live in, our property tax went up, but not horribly so; we now pay about Y120,000 a year, for what is a very big plot.

Of all the things I didn't expect to ever do in Japan, "mow the lawn" was definitely at or near the top of the list....

I really want to do this with the place next to our in-laws

[mighty58]

The house next door to ours was owned by an older lady, sons long grown up and moved out. She had a stroke and is now in a nursing home, doing well but not able to live on her own. The house had been sitting empty for about 5 years; her kids didn't want to sell it while she was still alive, until it became clear she wouldn't be able to move back. Since they were neighbors, the sons told us first before it went on the market. We explained that we'd love to buy it but that we'd be tearing it down, did they mind? They did not. We now have a garden. Because it's now part of the house we already live in, our property tax went up, but not horribly so; we now pay about Y120,000 a year, for what is a very big plot.

Of all the things I didn't expect to ever do in Japan, "mow the lawn" was definitely at or near the top of the list....

I would love to get the property next door to combine the lots and get more space. Neighbour is a single lady in her 80's... but it's not exactly something you can talk about openly without appearing more than a tad boorish. So I'm just waiting for an opportunity to convey my interest, without needing to bring up the topic myself .