We built a new house (DIY) in Japan on family land, and about 3 months after completion the tax office came to assess the value. To my surprise they measured the perimeter of the house (not the area), the height of the interior walls (7m in our living room), and the length of the kitchen counter tops (we have a large kitchen with about 20 running meters of counters). I was getting nervous watching them but they were very kind, and asked if I wanted to pay tax on my DIY labor, or should they just tax the material value. It's our family home so I opted for the lower valuation, with no plans to ever sell. So they valued the house at 6.5 million yen (I spent 5 times that, but they weren't interested in receipts) and the annual tax bill was 80,000 yen ($700) that goes down every year for 30 years when it will be 0¥. In California, I paid $10,000 a year for as long as I owned the property. I sing and dance on my way to the tax office in JP, sayonara California.
@702TifosiGambler Жыл бұрын
Awesome
@thatguyc8791 Жыл бұрын
I’m also from American I’m dead set on moving to japan but I was super scared about the taxes this is amazing to hear thanks 🙏
@dalexfilms Жыл бұрын
Congratulations on your escape! Soon, they may be taking bids on akiya in California.
@pocketally11 ай бұрын
Hi, did you move to Japan definitely or just for a holiday home?
@waileasunsets3 жыл бұрын
Thanks for all this info, it is very helpful for those of us thinking of buying a house in Japan. Big difference to the US seems to be that the buyer pays the real estate agent commission in Japan and the much lower property tax than we pay.
@GoodOldHousesJapan3 жыл бұрын
Come to think of it I feel like I didn't explain enough on the agent commission. It's more like a ladder-scale system depending on the property price but 3% + 60,000yen is the most common. Anyway, more topics more the future..!!
@nickloong2 жыл бұрын
I always believe that the property seeks for the owner and not otherwise. If its meant to be yours, all things will align to make the switch of ownership a breeze. 😄
@GoodOldHousesJapan2 жыл бұрын
Hi Nick, I feel the same as well. It chose me :)
@DoinStuff4Life Жыл бұрын
I am trying to buy a house in Kyoto while still living in the US. ..its been a bit harder than I anticipated but your videos have been really helpful
@jakewaters1709 Жыл бұрын
Any update?
@DoinStuff4Life Жыл бұрын
@@jakewaters1709 its been SO hard. the company I am using while ok with working with americans is very slow to respond and has been difficult with finding me a place. Gonna keep on trying. this will happen
@hemaccabe4292 Жыл бұрын
House purchasing process in Japan is not that different from US. Each area in the US is a little different so we are not identical to ourselves but fairly similar. Thank-you. This was very educational.
@johnnycanadiana18972 жыл бұрын
One of your videos randomly came up on my feed yesterday. So I watched out of curiosity... now I'm obsessed with these kyomachiyo and am seriously considering buying one as a holiday home/rental.
@GoodOldHousesJapan2 жыл бұрын
Thank you! Glad you liked the videos and hopefully you'll find a nice machiya for holiday home soon.
@tasteapiana3 жыл бұрын
The overall process seems fairly straight forward there. In the US, many cities have similar assistance plans to help people buy older homes - especially those which have been abandoned and fallen into a city managed programs. For example, St. Louis has a LRA (Land Reutilization Authority) which auctions off properties but also negotiates direct purchases. I think most of the taxes you listed for your Machiya are mostly symbolic and only there to sustain a working group in theory (ie proof that a city PR campaign or city plan is working to bring in buyers), it's not as if such small amounts could sustain a working budget or that anyone is becoming wealthy off of one-time $200 charges. The big tax hit will most likely come at the time of sale, which I am guessing is why the purchase price was near US $160,000 (which is kind of crazy through the eyes of an American but perfectly fine to a Brazilian who views such investments from the opposite end of the spectrum due to how income and sales taxes function there). Looking forward to the next installment that covers renovation costs as that will hopefully clear up what Kyoto pricing is like and give others a heads up about how realistic it is to attempt what you are doing. If you can come in at US $300,000 total and have a property that then rents for $1,500/mo that would leave $250/mo over a 20 year pay-back ($1,250 x 240 months = $300,000). Personally, I wouldn't be interested much below $2,000/mo rent ($1,666 pay-back over 15 years) because, ummm, crazy unforeseen things happen and within 5 years I'd want to be able to leverage any capital in it toward another renovation (or offload it to a rental agency for US $100,000 cash - hopefully with the $20,000 I'd then skimmed from rent for emergencies :P). 15 years / 180 months is a good measure to work within, in my opinion, 10 is too short and 20 is too long.
@GoodOldHousesJapan3 жыл бұрын
Thanks for the info on buying & preserving old homes in the US. I'm not familiar with the system over there at all but it seems like the system in the US encourages people to preserve rather than destroy & rebuilt like here in Japan since the 60-70s. Yes big tax will come when you sell the house...20%-40% depending on how long you have owned the house. I'll be sharing more in detail on the cost of renovation but total cost (property + renovation) of 300K-400K USD is totally doable. There are lots of expats/professors/high incoming groups of people so monthly rent of $1,500 ~ $2,000 is quite common for convenient areas + a house with at least 3 rooms. Anyway I'm no expert in property investment or anything so I'll stop here :)
@NinaNina-ry8fn2 жыл бұрын
I hope you and family will enjoy this home in good health and good cheers. You did a lot for this project. I hope you will be guided and protected always. Love&Light
@GoodOldHousesJapan2 жыл бұрын
Thank you Nina for the kind words. My family and I are well settled and enjoying the comfort of the new home & kind neighbors as well. The house is not completely done yet actually (no fences around the garden...), but at least I don't have to worry about the progress of the renovation anymore...
@nopefoh3 жыл бұрын
you used to work for hachise! it all makes sense now :) very informative video as always, thanks Machiya-sama
@GoodOldHousesJapan3 жыл бұрын
Thanks ラガス-sama for watching. Yes it's all connected!!
@figgettit Жыл бұрын
just a big thank you for this video and putting all this on youtube!
@GoodOldHousesJapan Жыл бұрын
Thank you and I am glad you enjoyed the videos!
@hemaccabe4292 Жыл бұрын
Property taxes are very low. Equivalent property where I live, which is low property tax by US standards is roughly 400,000 Yen/year. I'm watching this video running a Yen to USD webpage in the background so I can understand prices. That's fine. Happy to do it. Enjoying your story. I hope you find great satisfaction in your home.
@jeremyarroyo360 Жыл бұрын
I love okayama and kyoto.
@lovelynelizalde2915 Жыл бұрын
❤Thank you very much for sharing. I own a vacant house too but in Nagano Ken. ❤ send my regards to your wife😇
@ifashi4 Жыл бұрын
I'm studying this. Best wishes in your new house 🙏
@etherdog2 жыл бұрын
Juridical scrivener would probably be County Clerk or more probably the Country Recorder of Deeds. We are very excited to see your progress on the machiya!
@GoodOldHousesJapan2 жыл бұрын
Thank you! Juridical scrivener is not an easy word to pronounce compare to county clerk... 😂
@timothysmcnamara5925 Жыл бұрын
I don't think the County Clerk is licensed but the judicial scrivener is licensed. So maybe the English solicitor is a closer parallel.
@namaefumei Жыл бұрын
Really interested in costs. Please share more! Thanks for the videos, very informative.
@GoodOldHousesJapan Жыл бұрын
Thank you! Glad it helped.
@ck76423 жыл бұрын
Mahalo . Good information! Looking forward to coming videos. Best of luck with renovations.
@GoodOldHousesJapan3 жыл бұрын
Thanks for coming back. More to come!
@SundaiLove3 жыл бұрын
Very useful
@GoodOldHousesJapan3 жыл бұрын
Thanks and glad it helped!
@Haladmer3 жыл бұрын
Nice to see more of the details, hope the wife doesn't find out you're sharing the information! Thank you for sharing, and good luck!
@GoodOldHousesJapan3 жыл бұрын
Thank you Haladmer! She found out already but luckily I'm still alive :)
@titiwa5768 Жыл бұрын
Thanks for sharing! Could you put some links of old machiya/akiya Fudosan in Kyoto please?
@charliecat56863 жыл бұрын
Great video, all of your content is super. Hope you get lots of views!!! Get that loan paid for!
@GoodOldHousesJapan3 жыл бұрын
Paying off that debt 1 yen at a time :)
@notanotherutubeuser3 жыл бұрын
really excited to see this video
@GoodOldHousesJapan3 жыл бұрын
Thanks for watching!!
@hemaccabe4292 Жыл бұрын
Please explain in future video about what was involved in and the cost of renovations. The other issue I would expect with an old, wood construction structure in a hot, humid climate would be maintenance. Could you give us an update on what maintenance has been like? How much it has cost?
@josephlai97592 ай бұрын
Hi, may I ask how taxes are paid? Is there a gyro system that we can set up with the bank for deduction to the authorities? Or do people physically pay up at the municipality office or a post office payment service? Or could you send a cheque through mail? How would a foreigner without the benefit of a bank account in Japan pay taxes for the house he bought?
@airgaborpara3824 Жыл бұрын
Superb video!!!
@peterlo18903 жыл бұрын
Thanks for sharing the detail info. The one time property acquisition tax is very similar to the welcome tax in Quebec, Canada, but the tax rate will be depended on the property value (in today average house market price over here, it will be around 2% which it's 1% lower than in Japan). We also have the yearly property & school taxes together which it's around 1% of the property value. I think the property tax in Japan is low, based on the draft calculation, it's around 0.15% of the property value (16 million Yen). The only thing we don't have is the fire & earthquake insurance, or I should say it's not mandatory to have, but it's possible to have (mainly for the fire one, because our houses are mainly built by woods too, excluded the basement).
@GoodOldHousesJapan3 жыл бұрын
Thanks for the information on tax rates in Canada. I think property tax in Japan is relatively low compare to other countries, and old houses especially have even lower tax. The fee for fire & earthquake insurance is said to increase due to the excessive natural disasters these recent years....
@hemaccabe4292 Жыл бұрын
I would find fascinating what sort of renovations were done and what they cost in time and money.
@julioalvarez44813 жыл бұрын
Very good video, loving your content. Found you when you first started your channel but forgot to subscribe. Subscribed now, look forward to looking at your renovation journey. I am renovating my second property outside of Washington DC area, lots of work! I plan on renting out for extra money.
@GoodOldHousesJapan3 жыл бұрын
Thanks for the compliment! A bit slow on making renovation updates but hope to share more during the process. What kind of house are you renovating? I've seen that there are lots of beautiful old houses in the states as well.
@julioalvarez44813 жыл бұрын
@@GoodOldHousesJapan not a problem, I understand the renovation process takes time. My home is not old at all, it is about 30 years old, a craftsman style. A lot of the work is largely cosmetic, not to the degree of your videos!
@gmk49902 жыл бұрын
Very informative
@GoodOldHousesJapan2 жыл бұрын
Thank you!
@danielwhyatt32782 жыл бұрын
35 years of housing loan debt. Now that really does feel like a lot. I guess it’s necessary for many people, and I guess it makes sense to paid off little by little if you are planning to perhaps rent it out or actually even live in it. It’s just the idea of actually having to do it for that amount of time, when you know that’s money being taken away from you in order to pay it off and you need to do so, just feels like a lot of weight on the mind. still makes me question in the long term whether I’ll ever actually own a house or whether I’ll just rent for as long as possible trying to save money, even as house rent prices continue to go up. I must say though, living in Japan, even if it means renting would be an absolute dream come true. At least for about a decade of my life anyway and see where it goes. I’ll probably end up doing so when I can do long distance work or when I’m in my 30s.
@GoodOldHousesJapan2 жыл бұрын
Thanks for the comment! The interest rate for housing loans in japan is just so low that most people will consider when buying houses for residential use. 35 years is very very long though...
@youtubeojunk Жыл бұрын
In the US, mortgages are standard 15 or 30 years, so this is not unusual
@wjddragon2 жыл бұрын
We are debating now about purchasing a renovated Machiya in Kyoto. We have heard varying things about the annual tax. Yours seems to be extremely reasonable but one agent told us it is 1.4% + .3% in total which could make the annual payments to the state and city very high. Do you have any insight into the calculation between the sale value of a property and its ‘assessed’ value? For example, if a property is 40m JPY how can we estimate the approximate assessed value?
@GoodOldHousesJapan2 жыл бұрын
If the machiya was renovated more than 1 year ago, the best way is just to get the latest annual property tax from the agent. The assessed value of a machiya "house" will always be close to 0 before renovation, so most of the tax are for the land. The assess value of the house "after" renovation will of course increase but by how much there's no definite answer... Kyoto city has its set of rules of deciding how much the "assessed value" increases for a machiya house after renovation. Hope this helps!
@cookdiver7109 Жыл бұрын
Good info to share... rite now i have plan to buy house in japan. May i know it is possible to settle all procedures in a month? And for the foreigner what documents and details that needed to buy house? Thanks in advance
@Damiikyo2 жыл бұрын
Hi I have a question. Assuming I am a tourist without a visa. If I have all the money in my pocket to buy a house. (No need for bank loans). It is possible to buy a house. And to be able to live there until I return to my country. (Sorry if the question is not easily understood). Then the house will remain mine even if I am in my native country. And it is possible that the house is still mine but to leave a Japanese friend living or taking care of my property. ?
@GoodOldHousesJapan2 жыл бұрын
Hi Damian, yes you can buy the house even as a tourist. You will be able to live in the house as long as the VISA allows you to. The house and land will be "forever" yours and yes even after you go back to your country you own the house & land. Many foreign owners leave their houses to house management companies to take care (or friends are fine as well).
@Damiikyo2 жыл бұрын
@@GoodOldHousesJapan Thank you very much for responding. I really appreciate it.
@ryosakumogi1510 Жыл бұрын
Hello @Good Old Houses Japan. Could you let me know a few websites where we can mind AKiya around Japan? I already checked the "Sumai" one. Maybe there are some others? Thanks in advance and thanks for the very interesting and informative videos.
@GoodOldHousesJapan Жыл бұрын
Hi Thanks for the comment! You can use the site called akiya sumai. The page can be translated to different languages.
@stopato57722 жыл бұрын
The Hachise properties are very grand and well renovated. I wonder who can afford 1 million up to 4 million USD to buy such a property....
@GoodOldHousesJapan2 жыл бұрын
I agree. Anything over 1mil usd is likely for investment purposes/business use.
@RONIN1111 Жыл бұрын
It’s amazing they are still trying to sell abandoned homes for this much money.
@ronnie2.803 Жыл бұрын
Hello dear, May I ask, did I hear you say that you have to pay 7,700,00 for the land? Is that 7 .7million? Did you have to pay that amount first in one lump sum or did you get a loan or mortgage and then slowly pay back monthly? I am really interested and I am here in Sapporo…could you tell me more?
@GoodOldHousesJapan Жыл бұрын
Hi yes I am on 35 years housing loan. I paid about 16mil yen for both the land and house (excluding renovation cost).
@AbeyantHeroAspires2 жыл бұрын
How much of the paperwork is on the buyer to complete or does the agent step in to make sure nothing is done in error given an explanation to the buyer? Also would one be able to buy a property to have mixed use for a business to operate out of, using a business loan?
@GoodOldHousesJapan2 жыл бұрын
The paperwork isn't too much. There'll be a 6-8 pages purchase contract and another 10+ pages of document explaining important matters for the property. If the agent speaks English then there's shouldn't be too much problem to navigate through the purchase. Not so sure about business loan for foreigners though.. I'm sure it'll be easier than applying for a housing loan.
@rainmakerartistjourney3615 Жыл бұрын
do they sale house to foreigners .
@wisikahn Жыл бұрын
I have a dream of living in Japan where my parents used to grow up and live. Fortunately I got U.S. pension a little more than $3k a month, I am not a city buff but also not a hillbilly. I want to choose somewhere not too cold. Where would you recommened?
@GoodOldHousesJapan Жыл бұрын
Kyushu area sounds like a good fit for you!
@Whoisthisg Жыл бұрын
I guess for a foreigner you have to be residing in the country to be able to buy a property? or can you just go, do all you need to do and go back to your country?
@GoodOldHousesJapan Жыл бұрын
No you don't have to live in Japan to buy a property. You can buy as a vacation home but never visit Japan.
@kaynesheenan Жыл бұрын
What was the total in the end?
@GoodOldHousesJapan Жыл бұрын
Roughly 18mil on the house and 22mil on the renovation.
@oliverstianhugaas7493 Жыл бұрын
Thank you Japanese Adam Driver.
@breeze924827 күн бұрын
I was ready for 2-3M... But 16 for a 90y house...
@GoodOldHousesJapan26 күн бұрын
The fact is that 2~3 mil yen doesn't even cover the material cost unfortunately. If 2~3 mil yen is enough to fully renovate an old traditional house in Japan then I don't think there will be any new generation carpenters (& other craftsmen) in the future...
@breeze924826 күн бұрын
@@GoodOldHousesJapan But... you paid for a house 16M and 20M for renovation right? I mean... for a person who need to take loan for that you could build a new earthquake safe house.
@GoodOldHousesJapan26 күн бұрын
@@breeze9248 You have a point. However, if I am that concerned with earthquakes then I wouldn't be living in Japan in the first place. 🥲
@hinaimran83632 жыл бұрын
What’s the value for the land?
@GoodOldHousesJapan2 жыл бұрын
About 80% of the purchased price was for the land. The rest was the value of the house itself.
@jeffreymartin92662 жыл бұрын
Sorry if I missed it but what was the total cost?
@GoodOldHousesJapan2 жыл бұрын
Roughly 18mil for the house itself and 22mil for the renovation (tax and all misc cost included).
@TheYah00netstar Жыл бұрын
@@GoodOldHousesJapan *Yeah, right...*
@TheYah00netstar Жыл бұрын
@@GoodOldHousesJapan *Yeah, right...*
@hemaccabe4292 Жыл бұрын
Would you have the option to tear the house down and rebuild in concrete and steel particularly if you were willing to maintain exterior appearances?
@titiwa5768 Жыл бұрын
Hey, no answer? Okini domo. 😅
@GoodOldHousesJapan Жыл бұрын
Sorry! Here is a good site for properties in Kyoto. realestate-kyoto.com/ There are a lot more but all in Japanese...
@BrandonAEnglish3 жыл бұрын
All of these taxes.... Just seem like oppression to me 😂
@GoodOldHousesJapan3 жыл бұрын
Wait until the tax when we have to sell the house 😂...
@BrandonAEnglish3 жыл бұрын
@@GoodOldHousesJapan tax every time its bought, tax every time its sold, buyer pays tax and seller pays tax... Such a scam!
@JulietGermanotta11 ай бұрын
How does a American buy a house a akiya in japan ? I want to move there so bad I want to live in the rural part of Japan so bad. I wish somebody would do a step-by-step guide. I know I’m not having a midlife crisis just because I’m 42 and single. I have always wished to live in Japan and have like a little Homestead.
@dekamecha28542 жыл бұрын
Can I add you on socials? just in case I need someone to assist me buying a good price range house:)
@GoodOldHousesJapan2 жыл бұрын
Hi Deka, you can reach me on this Instagram page that I run. @koryoya.oldhouses.japan
@Vieen18103 жыл бұрын
Hello, What web site is that exactly please? Thank you
@GoodOldHousesJapan3 жыл бұрын
Which site are you referring to? athome is the one I use most of the time. www.athome.co.jp/