Advice on buying a mansion

[Utachiyo]

I'm thinking maybe I should buy instead of continuing to rent. For me, it's a kind of investment because I plan to have it paid off by retirement, so I'd only have to worry about the maintenance fees and whatnot beyond that. I found a place I'm interested in and I'm going to have a look at it on Saturday.

So...what are some things I should ask about? What kinds of extra fees and upfront expenses are there? Terms (in Japanese) I should know? Not just for the mansion itself, but loan terminology as well. How does the "sumaikyufukin" work? I'm completely alone in this (single mother) so I don't have anyone to really discuss things with. I have Japanese citizenship. Not a huge salary, but my monthly loan payments (for a 20 - 25 year loan) would be less than my current rent so there wouldn't be a major burden. Of course, that's assuming any banks will give me a loan... What if I don't have a family member to act as a guarantor?

And if anyone has any advice or information on things I may not have thought of, it's very welcome!

[Petronius]

I would start by reading the below website:
https://resources.realestate.co.jp/buy/ ... -in-japan/

I found it very useful.
Then you might have more specific questions.

[RetireJapan]

Depends on your local market, of course, but you may wish to consider a small house instead/as well. Manshon fees tend to rise after time, and there is a question of what will happen to the building once it gets older and people start moving out. I am planning to get rid of our manshon in the next 10-15 years to avoid complications.Houses don't have manshon fees, of course, and often have free parking, etc.

Or you may find a manshon is much more reasonable

[Utachiyo]

Petronius:
Thanks for the link! It looks alot more useful than anything that popped up on Google while I was searching.

RetireJapan:
I was thinking the same thing, but the only houses in my price range look pretty ramshackle with "stairs" that look more like a ladder... The one place I'm leaning towards now was built in 1992, so it's not too bad. And this area is fairly popular and convenient, so I doubt there will be much of a depopulation problem.

[Utachiyo]

Just an update (I know everyone was waiting, right? ). I looked at 2 mansions and 2 houses last weekend. The mansions were OK, but Ben got me thinking that a house would probably be better. When I saw the first house, it was love at first sight. It's spacious, has a nice view of the city, and it doesn't seem to need any renovations. The price is on the upper edge of what I can afford, but it's cheap for how nice it is. Probably because it has no parking. The second house wasn't taken care of at all. Even with the cheaper price, I'd have to spend a ton just to make it liveable.

Right now, I'm waiting for loan approval. The real estate office is handling it for me, but it's not going very well. Even though I'm a Japanese citizen (and during that process had my finances thoroughly checked), because I'm not a "seishain", It's harder to get approval. Hoping for good news next week...

[captainspoke]

God luck!

[Petronius]

If you have already gathered all the documents needed for the loan pre-approval you might as well apply on your own to other banks, in particular online ones (SBI, Rakuten, Prestia...)

Also, even if the place is great and cheap for what it is, if you cannot afford it you might end up in a difficult financial situation. Your target price should not be what the bank is willing to lend you but what you can comfortably repay.
It is easier to go over budget when house hunting, as well as it is to underestimate future costs associated with the asset.

Real estate "investments" are not as straightforward in Japan as they are in other countries, especially for houses compared to mansion. Buying something undervalued is not necessarily a good move if it strains your budget. The risk of becoming house-poor is real.

Edit: I would also have someone you trust perform a technical assessment of the house if you cannot do it yourself. At least check the norms it was build to, any reform/repair it underwent, the roof condition and the noise/heat insulation. Major potential issues that are costly to fix, beside electricity/piping, are structural water leakage and humidity.
Your real estate agent should be taking care of the legal assessment for you, being sure that the house follows the local zoning laws. the bank will do it to before lending.

[Utachiyo]

I was advised against applying for loans myself because too many credit checks would look bad on my record and just make things worse.

Of course, I have a limit to the amount I can pay per month. My current rent is fairly high and I feel like for something near this amount, I can get more space and more stability (I have the experience of being kicked out of an apartment because they wanted to rebuild). Not having to worry that my daughter's stomping and jumping are bothering the downstairs neighbors is a plus too.

[Roger101]

you may wish to consider a small house instead/as well. Mansion fees tend to rise after time,

that is probably good advice ... but there are advantages on a mansion compared to a free standing house as well to consider.

I live in a cold part of Japan and you can save a lot of money on heating and cooling ... due to having effectively better insulation by having other apartments next to, below and over you. This might not be an issue for you??

Other factors to consider are .... better privacy, much better security (if you are a few floors up) and much less to do (maintenance) outside (and less insects etc).
Obviously the thing to do would be to buy a mansion that doesn't have expensive overheads.

[Petronius]

Not having to worry that my daughter's stomping and jumping are bothering the downstairs neighbors is a plus too.

Thank you for that!! I am having this exact issue with my upstairs neighbors' kid

I hope that this works out and that you and your daughter enjoy your new place!