Buying a cottage

[DerekH]

Hi,

Just wondering anyone has experience buying a cottage (別荘) and how that is working out.

A bit of background, currently living in Nagoya but I see myself moving to Tokyo in the near future. I was thinking it might be nice to get a slightly smaller place in Tokyo, and then purchase a cottage out in Nagano, Yamanashi or somewhere like that. I probably spend two weekends a month already out camping or snowboarding. I already a 4 wheel drive vehicle so got that part covered.

The prices of these things are unbelievably cheap, and I'm already a fairly DIY sort of person so fixing up a few things might be fun. It understand it wouldn't be much of an investment, but rather a luxury.

Thanks

[RetireJapan]

I think the main thing is to be very aware of any fees and even debts on the property. There are lots of horror stories about people buying manshons with the service fees being in arrears and being on the hook for all of that. Also maintenance, future repairs, etc.

My parents in law have a plot of land they bought decades ago in a besso development. It's worth nothing now and they can't even give it away.

In extreme cases there might be a chance of losing public utilities if the property is really remote. Basically do your homework then enjoy your weekend luxury in peace

[DerekH]

Yeah - that's good advice. Most of the sites I've been looking at state the management fee flat out so that's good. I'll watch out for taxes too...

[mighty58]

I looked into besso's fairly seriously, attracted by the seemingly low prices, but decided not to do it.

In your case, if you're actually going to be at the place two weekends a month, and if you're a DIY person, then it very well could make sense. The other thing to consider is whether you're the type of person that likes going to the same place over and over, or whether you like exploring new places.

For me, the number of potential visits was closer to once a month at most, and I like visiting different places. I also realized there are a lot of very nice besso's available on AirBnb. Even if I was to spend 30,000/night, it's still much cheaper than owning in annual outlay terms, and with zero of the potential headaches and hassles. Although owning a cottage has its appeal, it seemed to be more hassle and cost than it's worth in the age of AirBnb.

But like I said above, it might make sense for your situation.

[AustinJapan]

I would love a cottage. With a little shed out the back with tools and a workbench or a little studio, a low maintenance garden. I don’t see any of that happening with an AirBnB...so I wonder what the “magic number“ is, where it definitely makes no sense to do it. Mighty58 mentions 30,000 yen, and that sounds like an awful lot me. The era where people are getting land for almost free will not last IMO, I think there will eventually be a major shift in the way the regs work. If someone knows of a service listing the prefectures and regions where incentives, concessions etc., might be available, that would be a great resource.

[RetireJapan]

I looked into besso's fairly seriously, attracted by the seemingly low prices, but decided not to do it.

In your case, if you're actually going to be at the place two weekends a month, and if you're a DIY person, then it very well could make sense. The other thing to consider is whether you're the type of person that likes going to the same place over and over, or whether you like exploring new places.

For me, the number of potential visits was closer to once a month at most, and I like visiting different places. I also realized there are a lot of very nice besso's available on AirBnb. Even if I was to spend 30,000/night, it's still much cheaper than owning in annual outlay terms, and with zero of the potential headaches and hassles. Although owning a cottage has its appeal, it seemed to be more hassle and cost than it's worth in the age of AirBnb.

But like I said above, it might make sense for your situation.

There is a really nice area about a couple of hours from us, a virtually uninhabited peninsula with beautiful sea views. We could probably find a cheap place there and buy it/do it up.

Or we could just stay at the nice hotel a few times a year (8,500 yen a night including breakfast and dinner). No brainer.

[mighty58]

...so I wonder what the “magic number“ is, where it definitely makes no sense to do it. Mighty58 mentions 30,000 yen, and that sounds like an awful lot me.

The "magic number" is completely dependent on how many days per year often you would go. I used a relatively high per night price to illustrate that, even at that price, AirBnb would've been (is) cheaper. (That being said, there are plenty of besso's on AirBnb at that price or more.)

Even spending 100 nights per year at 30,000/night is still "only" 300man yen. Meanwhile, even cheap bessos, assuming you want more than an abandoned old shack or something, is going to run you anywhere from 500man on the low end upwards to several thousand man-yen, plus ongoing running costs. So... yeah, the numbers just don't add up.

[AustinJapan]

For me, I want a place that looks pleasant, allows me to use power tools, play my acoustic guitar guitar as loud as u want ithout fear the neighbors will complain. Not something for マンション　life. I like to make things and have two motorbikes also. A shed with power and running water, windows, a porch, space and some green is all I need. I think a couple of hundred man would do it.

But as warned here, what surprises lurk?
Charges, taxes, proposed changes to local landscape, rusty old neighbor who hates foreigners, local community rules etc?

[Krolontra]

What you get when you buy a cottage in Japan depends very much on the place you are buying it.
I own a cottage out in the sticks. There is a club that runs the area with about 2000 houses and
2000 plots of land without houses. Buying price was 3 Million Yen (in 2005). Annual fee for the club that runs the
place is 70000 Yen. Water (also operated by the aforementioned club) is 7000 Yen every two month
including 20 m3 water. I usually pay however about 12000 Yen every two month because I use more ( live there permanently).
Therefore the water is expensive here. The rest of the utilities is normal. And thats it. No more costs.
Of course you need a car. And you might have to pay a registration fee, membership fee or the like
when you buy a house. Anything up to 300000 Yen. Around Tokyo or other big cities all these prices may be higher.

The house I bought is a pearl and was dirt sheep. This kind of bargain can still be found. You just have to take the
time and look. We made trips to several places and looked at about 30 houses of any kind. There is a lot of choice out
there. In some cottage areas you can rent a house on a daily bases. If you intend to buy, try to rent a few times in the
same area if that is possible. Check out where you can go shopping and so on.

The empty plots of land have a special problem. There are a lot of empty plots, which mostly were developed and
bought in the bubble economy and sometimes came with a membership in a golf club or the like. The problem is that
the law changed in Japan a few years ago and it is not allowed any more to build houses on steep slopes.
A lot of the cottage areas where built in areas with hills and a lot of the plots of land have steep slopes.
If you cannot built a cottage on that plot, its useless. The land therefore became worthless, but is still taxed.
Therefore, if intend to buy a plot of land, even if dirt cheap or for free, find out if you can build on it beforehand.

Best regards

[RetireJapan]

The empty plots of land have a special problem.

My in-laws have a plot of land in a besso development with onsen access etc. They bought it in the 80s and didn't build on it. Now it's worthless, and they still have to pay tax on it every year. They keep trying to give it to family members, but no one wants it. We'll probably end up giving it back to the development company