Looking for comments on the following scenario
- Objective is to buy 1LDK/2LDK(or larger) mansion in central Tokyo to establish a part-time residence (vacation home) in the Tokyo area (We reside in the US but travel frequently to the Tokyo area)
- Mansion preferred over standalone home for security purposes
- No intention to rent out when we are not present
- Husband US citizen, wife Japanese citizen with US green card residing in US
- Will pay cash with budget up to US$1M but prefer to stay under US$500K
- No expectation of appreciation or capital gain, we know the property will not be a profitable investment
- Some concern for earthquake and flooding safety, liquefaction, etc.
- Upon our demise the property will go to wife’s relative to sell, pay inheritance/gift tax and keep the proceeds so we would like to buy in a more desirable area and are willing to accept a smaller size if the area will remain desirable
Some questions
- We are unable to open a bank account now due to wife’s residing in the US and I was advised to engage a major real estate company to manage the property including bill and tax payments, periodic security checks and routine onsite maintenance tasks required. Is this a good approach? We are not budget-constrained and willing to pay a management retainer.
- Assuming location, location, location is a valid indicator of price it seems the better the location the higher probability of property value depreciation. Does this hold for central Tokyo? Should we keep looking close to JR stations, subway stations, Odakyu and Keio lines, etc.? We know some of the demographics and where the more desirable areas are and are currently taking this approach while searching for properties.
- We heard there some mansion properties are facing current distress because absentee owners (most frequently mentioned mainland Chinese) are abandoning payment of fees and in some cases abandoning their properties purchased with Chinese Bubble money. Is there any way to mitigate or reduce this risk?
- Any good resources for searching properties? We are currently using realestate.co.jp, realestate-tokyo.com, homes.co.jp, housingjapan.com. I’m mostly using these sites to feel out various areas.
by Route246