Owning a Manshon - basic beginners queries

[Seasider4374]

If I were to buy a "Manshon" what should I be aware of?

I've seen mention of the "Reserve Repair Fund" on this forum? Is this the monthly 管理費, or is the RRF just a portion of this monthly amount. Should I ask to see the balance of any repair fund before purchase, and if so how to analyse if the fund balance is sufficient?

If amendments to the building are needed how are these decided upon? Say (for eg) would a 30 unit building just require a 16 unit majority to force the amendments through? And every unit sharing the cost equally between them?

Likewise for the end of the buildings useful lifetime. How is the decision made to demolish (and re-build) on the site made?

Also as an owner of a unit are you completely free to remodel (not structurally) any part of your unit (bathroom refit/install wall hanging shelves for eg) or does a proposal need to be made and accepted by committee?

I've probably got a load more queries, but I hope readers may read between the lines and be able to post useful info for me.

For reference I grew up in a house and the only thing stopping my parents doing what they wanted to the property were of course planning and building regulations, and their own wishes/finances. Hence being the owner/occupier of a co-owned building confuses me...

[Deep Blue]

All the above are great questions and are exactly the reasons I resolved never to buy another leasehold flat or similar (manshon) again.

[RetireJapan]

We bought a manshon in 2016.

We pay monthly admin fees (for cleaning, lights, etc.) and also contribute to the repair fund. Our manshon seems to be fairly well run, admin is outsourced to a company. We have had regular repair jobs and a big renovation project last year that took about eight months.

We have to pay for car parking spaces and to use the bike racks.

Water is billed through the manshon, not directly from the water company.

There is an obligation to serve on the manshon committee. I have not done this yet but it will be our turn in 2-3 years time. We have 100 units in the building and only five places on the committee, so not overly onerous.

You need permission to do repair/renovation work but so far it has always been approved. You are generally not allowed to change anything about the outside of the manshon (including windows and the front door, balcony, etc.). We are not allowed to install a gas dryer. Pets are nominally not allowed but in practice you can have them as long as no one complains. Air BnB and similar is not allowed.

Having said all that I kind of like it. Everything is easy, you can put your rubbish out any time, the public areas are cleaned and maintained regularly, we have delivery boxes to receive parcels, there are staff on site in the daytime, and everyone pretty much leaves you alone.

[banders]

Why buy a flat? You can buy an old house for the same price. I lived in a (new) flat for nearly 20 years and wouldn't do it again. The thought of having to use an elevator to get to my car... Now I'm getting older, the thought of not having to tend a garden is appealing, but I would go for an apartment instead.

[Seasider4374]

Why buy a flat?

This view, and similiar from the other two balconies.


And that I'm maybe in a position to put down a 50% deposit, and then the monthly loan repayment on the remaining 50% price would be approx half of what the unit is currently being rented out at (to a US military tenant so rental values are not realistic amongst local Japanese - all comes down to rank of military tenant as Uncle Sam gives an allowance and pays the bill...)

My thinking is (IF I buy...) continue to rent it out for 10 years, saving the net excess from rent-loan, and then move in myself with the surplus saved, and my then future non-need to pay rent myself, meaning that from year 11 onwards I'll be saving on my current rental expenditure, AND actually own something.

Why buy a flat? ...I would go for an apartment instead.

I'm very keen to learn what the differences between flat/apartment/condominium, and アパート/マンション actually are? From my house dwelling upbringing I consider all five terms interchangeable... What are the differences?

[Seasider4374]

We pay monthly admin fees (for cleaning, lights, etc.) and also contribute to the repair fund. Our manshon seems to be fairly well run, admin is outsourced to a company. We have had regular repair jobs and a big renovation project last year that took about eight months.

Were the large renovation works completely paid out of the repair fund, or were all units asked to dip into their pockets and pay extra? If not, in this case, could that be a possibility in the future when owning a Mansion?

Or does private building insurance cover any unforeseen costs?

Also, how can I judge what repair contribution is fair, and if the repair fund is sufficient?

[Seasider4374]

All the above are great questions and are exactly the reasons I resolved never to buy another leasehold flat or similar (manshon) again.

Would be keen to hear what aspects of ownership exactly you particularly found frustrating?

[RetireJapan]

Were the large renovation works completely paid out of the repair fund, or were all units asked to dip into their pockets and pay extra? If not, in this case, could that be a possibility in the future when owning a Mansion?

Or does private building insurance cover any unforeseen costs?

Also, how can I judge what repair contribution is fair, and if the repair fund is sufficient?

So far the renovation fund has covered all work. We also had moderate damage from three earthquakes, which I believe was covered by the building's insurance.

I get the impression our building is being managed competently, which is very much not the case across the board.

[Deep Blue]

All the above are great questions and are exactly the reasons I resolved never to buy another leasehold flat or similar (manshon) again.

Would be keen to hear what aspects of ownership exactly you particularly found frustrating?

Being asked to contribute thousands of pounds to a new roof shortly after purchasing, not being able to do anything about noisy neighbours and the constant changes to annual service charges. In Japan I’d also have the worry the property would be essentially worthless at the end of its life rather than being something I’d be able to pass on to my children.

[Wales4rugbyWC23]

All the above are great questions and are exactly the reasons I resolved never to buy another leasehold flat or similar (manshon) again.

Would be keen to hear what aspects of ownership exactly you particularly found frustrating?

Being asked to contribute thousands of pounds to a new roof shortly after purchasing, not being able to do anything about noisy neighbours and the constant changes to annual service charges. In Japan I’d also have the worry the property would be essentially worthless at the end of its life rather than being something I’d be able to pass on to my children.

Extensions of long-term leaseholds by Landowners, inflation busting increases in ground rents and management charges and cladding renovations make Japanese mansion dwelling far more desirable especially financially than anything on offer for UK flat owners. I agree though that you do have something to pass on to your kids in the UK though, which you might have in Japan.