Hey folks, hope everyone here is well. I’m posting with a question I would appreciate some opinions on.
My wife and I (35M/35F) are interested in building a house in the outskirts of Tokyo, near the Ome area. We chose this area because the land is [incredibly cheap](https://tochidai.info/tokyo/) and the area is so beautiful with its mix of mountains, forests, and the Tama river.
We’re looking to build a Japanese-style house with a small plot of land. By “plot of land”, I’m not expecting an estate, just enough land to where we have a backyard and a few meters of padding around the house.
Assuming we can get approved for a 70M JPY loan, does this sound reasonable to y’all? Does anyone have a similar experience? Any good or bad stories about the Ome/Okutama area?
Edit: To clarify, not build ourselves. We would pay a home-building company.
5 comments
Have you checked Sumou to see what prices are in that area? That should give you an idea of plot sizes and building sizes.
70 million JPY? You can probably build a new house out there on a 100+ sqm plot of land for less than 40M.
[Here’s a 10-year old house on 108sqm of land 8 minutes’ walk from Oume station on sale for 33 million](https://suumo.jp/chukoikkodate/tokyo/sc_ome/nc_71271730/), to give you a rough idea of what prices to expect.
The bigger problem is whether the bank will lend you the full amount or require a downpayment.
Akiruno is just as accessible as Ome and Okutama, and has great hiking and swimming as well. But the land is a bit cheaper.
The only issue I see is how much return you can get on your investment. Brand new houses in the Ome area on 120 m^2 plots of land only sell for around 30M – 40M. Even if you spend 70M building a new house, its resale value might be capped to +- 25% the average in the area for similarly sized and aged buildings. But if that doesn’t bother you, then it’s not an issue.
I am around the Tama area we bought the plot (200 sqm) and built a house (concrete, 130sqm) for around 80 mil.