Akiya Renovation Update | Costs & Timeline
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- āđāļāļĒāđāļāļĢāđāđāļĄāļ·āđāļ 26 āļĄāļī.āļĒ. 2024
- I help foreigners buy properties in Japan.
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I bought an abandoned house in Japan.
And I recently completed the renovation of it.
In this video, I'm going to share the cost and timeline of the purchase and renovation process of my akiya.
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#japan #realestateinvesting #financialfreedom #passiveincome #akiya #abandonedhouses #homebuyingtips #cheaphouses #housingmarket #japanhousingmarket #buyingahome #japanvlog
Disclaimer: I am not a financial advisor. This video and the ideas presented in it are for entertainment purposes only and should not be construed as financial or legal advice. Please also note that the past performance indicated in the video does not guarantee future results.
00:00 Hook
00:08 Intro
01:01 November 2023 Walkthrough
02:18 January 2023 Walkthrough
03:16 February 2023 Walkthrough
05:17 March 2024 Walkthrough
08:13 Property Recap
10:02 Outro - āļāļąāļāđāļāļīāļ
Is buying an akiya in Japan a good idea or bad idea in 2024?
Depending on your situation. I plan on buying a fully renovated home in Japan, because I don't want to waste time on renos and would want it rent ready ASAP. If you have time to design and plan all the renos, akiya are the way to go. My two cents.
Well it really depends on the location and reason for buying as a rental or vacation home or investment.
What I think should be a concern is local laws, especially since I heard about new laws targeting foreign people mainly tourists. It mainly focuses on tourists harassment of geisha and other misbehavior of people like that one guy who did that thing on the train bragging about the dropping of the atomic bomb, and other people stealing or creating nuisance of themselves. From what I heard and it really is not from a main source so the information may be wrong certain areas will have curfews for foreign people and some areas may be restricted entirely. Understandable and not targeting normal foreign people just got me thinking about it is best to understand the laws that may affect you. I would like if possible a video that would cover what laws that would affect you if you buy a house in Japan. You covered some slightly and I downloaded your free book and will read it soon
From how it was to how it is now is a huge difference. You are literally saving those houses from slowly falling into ruins giving them a new lease on life ð
Yes, how I see it is that it's more than just real estate investing - hoping to solve Japan's akiya problem one house at a time ;)
That staircase to the second floor definitely needs light! It sure was a messy abandoned home turned better.
Transparency, Honesty and Consistency. Thatâs why I Love your Channel, Shu. ð
And, Iâm a big fan of your Thumbnails, You always look Great!ð
Thank you for your kind words! Really appreciate it ð
I always wondered why everyone in Japan dislikes older houses. especially for buying but for rent tioo).
and now I think I see why.
this is no renovation.
I have seen 50 years old social housing that looks better than what this is.
the kitchen and the batch are stomach-wrenching and I would probably puke being in there.
Old yelowed plastic everywhere even ion cheapo parts like switches.
this was not a renovation. this can barely be accounted for as an emergency sanitation.
i am sorry for anyone who ends up there.
Clearly, this was not done to make a nice place to live that someone could rent. This was done to maximise profit without spending the appropriate amount of money.
I personally would be ashamed of renting a property in this state.
Nice work Shu. The property looks great.
Thank you! Appreciate your kind words :)
I like how Shu offers a lot of info for those looking to get into the Akia ownership and renovation scene!
This video was really good to watch!
Have a good 2024, Shu!
Thank you for your kind words! Really appreciate your encouragement ð
Perfect timing for my morning coffee. You are so inspiring. I hope I'll follow your steps soon. Working hard towards this goal right now
Appreciate your kind words! Let us know if you need help achieving your goal :)
@@shumatsuopost I will definitely do it. Thank you for letting me know that it's ok to approach you on this matter
congrats shu! the return on this akiya is super great, really happy for you. and looking forward to cooperate with you in the near future
Thank you! Appreciate your kind words.
Ooo more of this series please!
Yes, a lot more to come :)
@@shumatsuopost Wonderful! Looking forward to it ðĨģ
7-8% ROI not bad. Well done. We may work on the future
Great job buddy ð
Thanks!
That was a very nice house Shu! I renovated a house in Northern Virginia during COVID and it was tough, but I saved a lot of money. I hope you're able to rent that one out quickly, it took me about 2 months to find a good fit and they have been amazing so far. I've been looking at international real estate for a while now, and I find Japan so interesting. The Washington DC metro area is very safe for rentals, but the properties are so expensive and contractors can be pricy! I will continue to follow as your portfolio continues to grow!
Very good information ð
Thank you
I like the blue. Thanks for the video
Thanks for watching!
Good morning Matsuo san. Yoir channel is very consistent and is very inspiring. I wish you success and getting a good long term tenant.
Thank you!
Lots of empty homes in Fukushima.
Can you do break downs that include how much property tax & insurance?
Would love a video on property tax in Jp and how it varies from city to city or if itâs a national one size fits all.
Reminder itâs Easter. Views may be off today.
Dreams don't take a break
ð
It's Ramadan.
@@TotsukiMahono but itâs not EID until next month.
@@lo674 I just didnât want him to think it was the video itself not generating interest. Some are all day busy today.
Appreciate you so much! If my wife and I weren't expecting our first child next month, I would be reaching out to you about assisting with this process! Love Post FI!
Congrats on your first baby! A house can wait ;)
It looks great Matsuo san. The cost of acquisition and renovation was very reasonable. I am sure you will have no issues finding a tenant.
I very much enjoy your channel.
Best,
Jeff
Thank you - appreciate your kind words!
12% yearly return, not bad. How much does the value of the property go down every year in %? Also what do the taxes look like in terms of capital gains
Watching live from japan ðŊðĩðšðŽðððš
I keep being told that because of the long days in the working culture of Japan, meals aren't prepared at home and instead, are purchased ready to eat. Are kitchens usually this bare? It looked like a rough finish and not like the quality of the remainder of the home. Thank you for all the information regarding a "turn key" operation.
Thank you for all that you are sharing Matsuo-san, very informative. Can I ask if you were to do the renovations yourself, do you need any permits? Thank you in advance.
Super interesting and informative video, thank you!
Just one potentially silly question... What is your long term goal/strategy with this property? And with real estate in Japan in general?
Thank you for the walk thru! Such useful info! Can you share the name of your renovation company?
great vid shu, for reference the term black&blue means beat up (ie. bruised) its an older phrase but usually used in a threatening way like " I'll make you black & blue " lol
Hey Matsuo san, the house looks nice!
I found an akiya house in Tokyo when going on a walk but after doing some research, I couldnt find any listings for the property so I was wondering on how to acquire the house and is it possible if you can suggest me some links for some akiya banks. I could barely find any akiya house listing on AtHome and Summo.
Thank you!
Going through this journey next year! My work is happy to relocate my wife and I to their Tokyo office, its fully remote work so just comes down to location for my wife finding work.
We're spending the rest of this year to keep building on our savings then want to look in one of the prefectures neighbouring Tokyo like Saitama or Gunma!
That is awesome! Good luck on your journey!
Wish you luck to find a good tenant âĪ
Thank you :)ð
At $462 a month, I'm assuming you're not looking to see a return anytime in the near future and this was more of a passion project?
$462x12 months is about 5K per year after taxes. So around 10% ROi per annum. I guess that is fair. 10 years for 100% payoff. Smart investment if he owns the land ..which is not mentioned.
@@stopato5772especially considering that interest rates in Japan have largely been negative or zero.
Wow Matsuo san!! Amazing renovation and turnover with this Akiya. Matsuo san, a question? Is there property like land available to buy in Japan to build a home? Please advise. Once again, great job
Nice little home for a single person or couple to stay life in. Single bedroom houses in America are very hard to rent out long term residents.
But from start to finish it turned out very well for a small house.
I think it's actually worth it!
Im trying to make this work in my head - maybe this is a good video topic.
Letâs say I buy and renovate for $50k usd, all in.
Letâs say I rent and clear $500 a month, thatâs $6k a year.
50k/6k = 8 years to break even and then $12k at the 10yr mark.
My $50k house will have reduced in value $40k given a 2% a year depreciation.
So at 10yrs Iâll have $52k - having only made $2k after 10 years of risk.
If I put $50k into a 5% money market (eg Fidelity SPAXX), after 10yrs Iâll have $80k.
And thatâs just 10yrs - given more time the Japanese property will continue to depreciate and my rent income *might* go up a little. But in that same time, my money market account would far surpass what I would make on the home.
So, what am I missing? Where have I gone wrong and what am I overlooking?
Thanks.
You motivate me to buy an akiya in Kobe where I live with my family. I'm earning USD and since I'm living in the house, it seems like a valuable investment to make.
I'm still looking in the Yamanashi area, I think I might have found something. My purpose for this one is more of a vacation/ retirement type home and family lives nearby.
I would LOVE to take the plunge, but I'm getting 5%+ interest on cash deposits. It seems a lot of hassle from an investment perspective!
What will you do when The interest rates are lowered?
@@jdskates.69 rumor on the streets has it, the fed's gonna lower interest rates by may 2024
Getting a house at minami yokohama for this price is a steal... Nothing comes close so it's a very impressive purchase
Yeah, I got very lucky :)
Been watching your videos because we are interested in buying an Akiya. Questions, did you/ are you doing the renovations yourself or did you hire someone to do it. Did you get rid of the things that were left behind or did you hire a company to do it for you? Mahalo ð
Is it correct the yield PA after all your cost is roughly around 9% ?
How did you get rid of the stuff what was the process? Thanks
How does this pencil out for ROI? With just the rent figure you provided, it seems like you wouldn't be positive for 8 years, and that's just for the purchase + renovation (not taxes, maintenance, etc). Does that feel like a good/fast return for you?
oh boy... love your videos but can't say we were a fan of the vinyl flooring you had put in. Everything else looked nice!
Appreciate your feedback ð
After renovation how much could you resale the property for?
Cash Jordan version of japan
Great project and hope you find a good tenant soon. Only negative I see is the kitchen seems a bit unfinished.
The final walkthrough was a bit premature - the team went in a couple more times and redid the kitchen now
Was the land included or is it lease hold?
I wanna buy an Akiya apartment complex ð
As a potential investor, it would be wonderful to know the financial details.
Congratulations Shu! What are PM fees in Japan? 10% like in the US?
Thanks! No, it's usually about 5%.
Wonder how do you get the previous ownerâs belongings removed or does it come under the renovation companyâs job?
Am asking because it looked like a massive job.
I guess when youâre renting, you spend a bare minimum on Reno.
Thanks Shu
Where are you listing the property?
You're going to have problems with that bath tub in the bath. Water will go all around that bath tub with not proper design drainage or silicone to prevent the water going behind and causing mold. I think you will hear from the tenant soon after
So, with a renter you break even in 10 years?
most properties in japan only gives 4~6% return, what shu found is super high already
It seems this plan only works of you get it under a Japanese loan. So If he bought it outright, it was probably not the best investment ðĪðĪ
@@thereviewboss if he was planning to live in it, it's not bad. But to rent and recoup in 10 years+, sounds like a poor investment.
@@rc3398x but one thing we are forgetting the house he got is super cheap for the area. Its already a 100%+ profit since bought. Minako-ku aren't cheap!
@@thereviewboss yah it was a slickdeal!
Would be nice if you could go through the process and costs of getting rid of all the previous owners belongings.
Do you go through a rental management company to lease out the property and if so what are the fees?
In the next update, I'm planning to share more about that - stay tuned :)
That would be very much appreciated. My wife is Japanese and we live in Australia but intend moving to Japan in the next 2 years to look after her mum and take over the family home. We will be wanting to buy a few Akiyas in order to start income stream. Your videos are very good by the way. One more thing, take a torch with you when you go looking at new places ð
Maybe it's me why not renovate the kitchen a little more
Costs
@@Inc.Co. I get the costs part, I might not know what is acceptable as a kitchen for Japanese.
@@torontoyes he did the MeetKevin reno ðĪĢ
I wonder what the property tax is on a property like this.
The kitchen still looks like it needs some updating. Those counter/sink units are so small and your house's looks really in need of updating. (or at least cleaning.) I am sure you had a budget, but sheesh, the kitchen is one of the biggest selling points of any house and that one still looks less than appealing. You did not mention the exterior at all. Did you make any upgrades or was it left as-is?
Stickers need to come off closet door. The flooring in the L and bedroom should be wood colored. Iâd be terrified to use the kitchen sink with all those cable and wires.
ð I'm going to have to attract someone who's going to be OK with all that ;)
@@shumatsuopost fair enough.
What are the wires/cables for anyways? Stove? Appliances?
It could be paid off in 4 years.
Did you finance the akiya? Is that even a thing sorry for my American mentality haha
I have a house in Japan and I want to sell it.
Where in Japan?
Tokyo Ome
Four bed room
Happy Easter! Jesus Christ Is Alive!ðð
Good luck finding good tenant ð Id avoid renting to foreigners,,ð