I am an Australian considering a condo purchase at a small but reasonably well known ski resort around Nagano. Location is fantastic, 200m from a ski lift.
I’ve skied there a few times and like the place. It’s centrally located to a bunch of other bigger resorts and is only about 15 mins to the Shinkansen. Build is early 90s. It’s only around 40m2 but the layout looks fine. A little dated as you may expect but only asking 2 million yen.
I’m doing due diligence and will likely head over if and when borders open to do a deal. There appears to be multiple options.
I know rental is unlikely/illegal? – but am considering a joint purchase which I understand is OK, splitting around 5 weeks of season usage each and then having access at other times. My thought was to purchase a cheap AWD vehicle second hand and add that to the mix.
Assuming some discount from list price, adding on legals and around 500,000 yen in purchases to make it comfortable and with car I figure total cost around 3m yen (1.5m yen each party).
Ongoing it looks to be a bit under 20000 yen a month on top and I assume about the same again for everything with the vehicle per month.
Anything major I haven’t thought of in this scenario?
4 comments
You need to talk to a lawyer about this. There are tax implications to buying and later selling property, which you need to be aware of. There may also be rules regarding renting it out.
You’ll need to figure out how and when to pay your property taxes. Probably also need to figure out a mail service since Japan Post can’t forward your domestic mail internationally. There may also be regular inspections that you’d need to figure out how to get done. I’m sure there are property management companies you could employ to handle these things for you.
Remember as well, owning property doesn’t give you any right to enter Japan or reside in Japan. So if covid flares up again, or something else, you may find yourself unable to use this property at all.
In addition to the actual price of the condo, you’ll have to pay for all of the paperwork to get the sale done. You’ll also have to pay property taxes every year, and the annual condo fees. Be aware that the condo fees increase usually every five years or so, and eventually the condo will be renovated or even torn down and rebuilt. Owners will have to pay for that.
Main thing I would check is when the next big renovation/rebuilding will happen. You don’t want to pay for something that seems cheap, but then get hit with a humongous bill soon after. Maybe the current owner is trying to bail before it happens?
r/japanfinance will probably be able to provide you much better and detailed information
Is there a free parking included (car owners need to show proof of a parking)? Can you always come to Japan when the car needs shaken (inspection)?
Why not rent a car instead?
Considering utilities and responsibilities, at least to me it looks considerably cheaper to stay in a hotel for five weeks every year especially as a non-resident. Plus you can travel around with Rail Pass and don’t have to spend the whole time in the same place.