The risks of buying real estate in Tokyo
Japan’s capital, Tokyo, is a global city with many foreign investors. According to experts, however, there are factors that need to be considered when investing in this city.
There are two reasons why Tokyo is preferred. One of these reasons is low interest rates and strong laws for foreign investors. However, buying property from Tokyo is slightly different from buying property from the US and Europe. The purchase of property from Tokyo holds some risks.
The most important factor to pay attention to when buying property from Tokyo is earthquakes. In Japan, the world’s most severe earthquakes are experienced. In addition, the tsunamis together with the earthquake can cause great damage to structures.
If you buy property from Tokyo, you need to buy a house that meets earthquake standards. You have to choose the buildings after 1981. Do not buy an unstructured property with RC.
Another disaster that threatens Tokyo is the fire in disaster. The main reason for the fires is dry Tokyo summers. If you are going to buy a house or an office in Tokyo, you must have insurance. Talk in detail about how much the insurance company can pay for the damage.
If you are going to rent a house in Tokyo, you need to pay attention to the structure of the population. Tokyo has an aging population. In Tokyo, families are also declining, and people are usually single. Apart from these, suicide rates are very high in Tokyo. For these reasons your old tenant may die or commit suicide. Many Japanese are unwilling to rent and buy a house that has been suicidal from within.
According to Article 47 of the Real Estate Processing Act in Japan, real estate agents must tell their property history to buyers in full detail. The Yakuza mafia in Tokyo has a negative impact on real estate purchases.
Characteristics of regions not preferred to buy in Japan
the vicinity to cemeteries (most temples have an adjacent cemetery), slaughterhouses or other institutions associated with death,
red-light districts (like Kabukicho),
areas frequented by yakuza, and
former burakumin ghettos
Sevdenur Demir / [email protected]