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Depreciation of Lucrative Apartments
Posted: Sun Jul 04, 2021 9:38 am
by Dummy
I've been seeing people saying that it might be worth renting a place rather than buying one.
So I wonder, how about those towers you see in front of major stations?
I was comparing some places, and the price seem to be always around 100m yen for 3 room apartments.
It doesn't seem like those type of places lose any of their value, mainly due to their location (just in front of the station).
Does anyone has any input on this?
In my country there was a website where you could see the history of purchases in any given area, I wonder if such a thing exists here?
Re: Depreciation of Lucrative Apartments
Posted: Sun Jul 04, 2021 2:34 pm
by mighty58
The history of property purchases is available at this government site:
https://www.land.mlit.go.jp/webland_eng ... ainServlet
or this private site:
http://www.contract.reins.or.jp/search/ ... nBLogic.do
On both of them though, the information doesn't get granular enough to pinpoint specific buildings, so you'll have to do some educated guesswork based on addresses and distance from the station.
As far as tower manshon's go, they certainly do appeal to a large segment of the population here. Some have seen values more or less hold steady or even rise over the last 10-15 years. However, there has been a definite uptick in the amount of negative press about the long-term viability of towers, as well as the well-publicized problems in Musashi-Kosugi last year after the floods, and they're still being built like crazy raising supply levels, all of which together could put a damper on long-term demand. You're right about the prime real-estate though... station-front locations don't come around everyday, and certainly will help to retain value (or at the worst, lose value in a slower way).
I lived in one (subsidized rental) and looked deeply into purchasing before ultimately deciding to purchase a house on land... the numbers never made sense to me. It's expensive living for what you get. I ended up getting twice the floor space, for less money. The only inconvenience is that I need to put out the garbage on garbage day, rather than whenever I want. I can live with that.
Re: Depreciation of Lucrative Apartments
Posted: Tue Jul 06, 2021 8:25 am
by Dummy
mighty58 wrote: ↑Sun Jul 04, 2021 2:34 pm
The history of property purchases is available at this government site:
https://www.land.mlit.go.jp/webland_eng ... ainServlet
or this private site:
http://www.contract.reins.or.jp/search/ ... nBLogic.do
On both of them though, the information doesn't get granular enough to pinpoint specific buildings, so you'll have to do some educated guesswork based on addresses and distance from the station.
As far as tower manshon's go, they certainly do appeal to a large segment of the population here. Some have seen values more or less hold steady or even rise over the last 10-15 years. However, there has been a definite uptick in the amount of negative press about the long-term viability of towers, as well as the well-publicized problems in Musashi-Kosugi last year after the floods, and they're still being built like crazy raising supply levels, all of which together could put a damper on long-term demand. You're right about the prime real-estate though... station-front locations don't come around everyday, and certainly will help to retain value (or at the worst, lose value in a slower way).
I lived in one (subsidized rental) and looked deeply into purchasing before ultimately deciding to purchase a house on land... the numbers never made sense to me. It's expensive living for what you get. I ended up getting twice the floor space, for less money. The only inconvenience is that I need to put out the garbage on garbage day, rather than whenever I want. I can live with that.
Thank you! That's a great resource.
Re: Depreciation of Lucrative Apartments
Posted: Thu Aug 05, 2021 3:03 am
by TJKansai
One thing that scares me off condos is the maintenance fee. They tend to be pretty high, as maintenance is incredibly costly as time goes on. I looked at a place in Hawaii as an investment, but it was really hard to make the numbers work, even with a long-term renter. The owner, a friend, offered to sell it to me a fair price, but said unless I lived there I'd be better off putting the money into mutual funds.
The owners of those older condos in Florida must be panicking now in light of the recent disaster. Some were selling for $300,000-$1,000,000 only to discover the buildings are falling apart.
Houses have maintenance of course, but you can decide how much and when to put in, and what you can do DIY.