Been browsing both new and old homes and am finding some strange things. Both new and old homes always have land + home value to be less than 70% of the listing prices (usually 45% land, 20% home, 35% some kind of premium?)
Examples:
(Shibuya-ku) New home listed 130M yen but 50 m2 land worth 60M yen, 90m2 home worth 25M yen. So I am overpaying 45M for constructions costs? Understand developers have to make a profit but is it normal to pay this much? Concerned what would happen if I try to sell the home, even with land appreciation, I'm worried I'll be looking at a loss.
(Setagaya-ku) Strangely, same ex for a 5 year old home too! I am not sure why. Do all homes just list at a 30% extra premium on top of their actual land + home value? If that's the case, I feel more relieved.
by floxik