Buying a second manshon for no reason

[TokyoBoglehead]

On the other hand we have been trying to change our mindset on spending recently, and I think the unit would likely hold its value quite well, especially if bought for 13m.

Do you have data to support this? What is your thesis? Isn`t supply likely to increase in the future, as demand decreases?

I am curious now. I have been to Sendai, I am not sure I understand your confidence in the market.

[captainspoke]

I browse the used condo mkt locally now and then, and can't remember ever seeing what would be a connected unit--side by side units that had been made into one. Is this even okay with the management association? Would it have to be voted on as would a total rebuild? Then after, would you have two votes in the future, or just one? Still two assessments and tax bills, or one?

[RetireJapan]

On the other hand we have been trying to change our mindset on spending recently, and I think the unit would likely hold its value quite well, especially if bought for 13m.

Do you have data to support this? What is your thesis? Isn`t supply likely to increase in the future, as demand decreases?

I am curious now. I have been to Sendai, I am not sure I understand your confidence in the market.

Oh, I'm not talking about Sendai, just this particular building. We've seen prices rise from the 9m we bought our place for five years ago to the 17m the identical unit next door is listed for.

The building is an incredible location, next to a train station and near shopping, schools, highway exit, airport. Of the 84 units, only 3 are currently on the market and they tend to sell quickly.

So it's just a hunch, but buying for 13m I would expect the unit to roughly hold its value in the future.

[RetireJapan]

I browse the used condo mkt locally now and then, and can't remember ever seeing what would be a connected unit--side by side units that had been made into one. Is this even okay with the management association? Would it have to be voted on as would a total rebuild? Then after, would you have two votes in the future, or just one? Still two assessments and tax bills, or one?

I haven't specifically asked, but my understanding is that this would not be possible. Mansions are basically long concrete tubes, so you can do whatever you want to the inside of that (rearrange walls, rooms, etc.) but you can't mess with the outsides (walls, windows, door).

[Deep Blue]

So it's just a hunch, but buying for 13m I would expect the unit to roughly hold its value in the future.

Outside of super prime locations (Roppongi Hills type apartments) do used condo's ever hold their value in the long term? From what I have seen, up to about 20 years they seem to hold their value and be re-sellable.... but then it seems the value starts tending towards zero and reaches there in 30-40 years. Obviously this is a very wide generalisation but it's the image I have... especially in towns where the population is aging and shrinking - which I assume is most of Japan outside the big cities.

[RetireJapan]

but then it seems the value starts tending towards zero and reaches there in 30-40 years.

Okay, post some links to real estate listings for manshons with a price of 0

Here are the listings for our ward in Sendai: https://suumo.jp/jj/bukken/ichiran/JJ01 ... &po=5&pj=1

Cheapest manshon on there is 4.5m for something 41m2 built in 1975

[northSaver]

Okay, post some links to real estate listings for manshons with a price of 0

Not zero, but here's one for 300k at Lake Toya: https://www.landec21.co.jp/sale/detail/10129-711

I think this is partly due to the high monthly fee, which is used to maintain a private onsen in the building. Also it's at the foot of a very active volcano!

I know, not comparable to a city centre

[RetireJapan]

Not zero, but here's one for 300k at Lake Toya: https://www.landec21.co.jp/sale/detail/10129-711

I think this is partly due to the high monthly fee, which is used to maintain a private onsen in the building. Also it's at the foot of a very active volcano!

I know, not comparable to a city centre

Where? Seriously, I zoomed out as far as the map would go and still couldn't find any recognisable landmarks...

Love the 875 yen a month mortgage payment though

[northSaver]

Where? Seriously, I zoomed out as far as the map would go and still couldn't find any recognisable landmarks...

Love the 875 yen a month mortgage payment though

It's Lake Toya dude! A beautiful caldera lake and tourist area in Hokkaido. Also the site of the 2008 G8 Summit

Yeah, I've been tempted to buy something like that as that as a holiday home. But fortunately realised that it would be a 40k per month millstone around my neck. For that money I could stay in a nice lakeside onsen hotel every month
The only good thing is that the manshon price is unlikely to depreciate further.

[Deep Blue]

but then it seems the value starts tending towards zero and reaches there in 30-40 years.

Okay, post some links to real estate listings for manshons with a price of 0

Here are the listings for our ward in Sendai: https://suumo.jp/jj/bukken/ichiran/JJ01 ... &po=5&pj=1

Cheapest manshon on there is 4.5m for something 41m2 built in 1975

I imagine most of the ones with no value are simply abandoned rather than resold. With the monthly fee and unknown future repair costs it becomes a risk most buyers won’t take? Millions of abandoned houses too, with little or no resale value.