[HN Gopher] Japanese government is selling houses for $500 to po...
       ___________________________________________________________________
        
       Japanese government is selling houses for $500 to populate rural
       areas
        
       Author : protomyth
       Score  : 104 points
       Date   : 2021-05-31 15:36 UTC (7 hours ago)
        
 (HTM) web link (www.insider.com)
 (TXT) w3m dump (www.insider.com)
        
       | 3np wrote:
       | I live in a Japanese small town and have been looking into this,
       | some random thoughts:
       | 
       | This keeps getting resensationalized[0],
       | 
       | While it varies a lot per region, a lot of these can come with
       | clauses such as making it your residence, doing certain
       | maintenance/reparations/replacement etc.
       | 
       | I have been looking around a bit for something like this in the
       | local akiyabanks, but there's just a handful of items on there,
       | most have been there for years and the entry of new ones is
       | really low. Not to say that there hasn't been success, but the
       | reality is that most of these require significant investment
       | and/or dedication to be attractive. There are also other
       | programs, like renting them out rent-free in exchange for
       | maintenance (really, would you invest 100,000s of yen to replace
       | the boiler in exchange for rent on your 6-month notice rental
       | contract?). Still, most empty homes are not part of anything like
       | this and are left to ruin. Anywhere except the bigger cities (and
       | sometimes even there), this has a significant impact on towns.
       | Driving anywhere in a more remote prefecture and you see
       | abandoned houses falling apart pretty much everywhere. It can
       | really be nice living here, though.
       | 
       | 0: https://soranews24.com/2015/04/10/so-who-wants-a-free-
       | house-..., https://www.bbc.com/worklife/article/20191023-what-
       | will-japa..., https://edition.cnn.com/2018/12/05/asia/japan-
       | vacant-akiya-g...,
       | https://www.atlasobscura.com/articles/japanese-ghost-houses,
        
         | leoc wrote:
         | https://www.youtube.com/watch?v=TwRjO3kHxU4 seems to be pretty
         | balanced and informative too.
        
       | pmoriarty wrote:
       | There are places in the US which will give you a home for free
       | and some will even pay you to move in as long as you fix it up
       | while you live there.
        
         | the-dude wrote:
         | So where do I go?
        
           | WillPostForFood wrote:
           | Free land here: https://www.wideopencountry.com/free-land-in-
           | the-us/
           | 
           | Free or nominally priced homes:
           | https://www.businessinsider.com/where-are-free-homes-
           | cities-...
        
       | dheera wrote:
       | Okay, so VERY serious question here.
       | 
       | Can I, as a citizen/resident of the US, buy one of these $500
       | houses and keep it as a vacation home for whenever I feel like
       | going to Japan and chilling?
       | 
       | That's literally less than 3 days worth of hotel stays at a
       | decent hotel, and it sounds like an excellent deal if there
       | aren't other strings attached.
        
         | panny wrote:
         | You can, but it may collapse in an earthquake or landslide
         | before you arrive. Common wisdom in Japan is an empty home will
         | begin to collapse within two years. Then you need to pay for
         | disposal, which is a major expense. Buying a $500 home will be
         | like adopting an old shelter dog. It requires lots of care and
         | will still die soon. If you want to move in and make it a great
         | place it might be possible. As a vacation home for one week a
         | year to see sakura flowers? No, bad idea.
        
         | raincom wrote:
         | Do you think these $500 homes are habitable?
        
         | lhorie wrote:
         | It's probably not as romanticizing as you expect.
         | 
         | Watch the beginning of Totoro to get an idea of what an
         | abandoned house in rural Japan looks like (rundown, in the
         | middle of nowhere). Vacation homes anywhere get quite dusty in
         | a mere week, so you'd be looking at a spring cleaning event on
         | every trip (very much like in the movie).
         | 
         | Bear in mind also that flight tickets to Japan aren't exactly
         | cheap either; you can get a week worth of hotel stays in the US
         | for the price of the round trip flight from US to Japan.
        
           | dheera wrote:
           | I mean yes, they aren't cheap, I've been there a couple of
           | times before, but lodging costs in Japan are sky high as
           | well, which is more my intention.
        
             | lhorie wrote:
             | Well, if your idea of chilling is being away from
             | civilization w/ moderate amounts of physical labor, then
             | rather than acquiring a rural abandoned property, a
             | possibly less committed option with more flexibility for
             | tourism is camping.
        
       | janmo wrote:
       | There is no mention of how the internet connectivity is.
        
         | numpad0 wrote:
         | I see utility poles and neighboring homes in the photos, so
         | most likely gigabit wired and LTE wireless are available.
         | Amazon Prime next day delivery probably works too.
        
         | dubcanada wrote:
         | huh? It's not a real estate website. It's a news website.
         | 
         | Go look it up for yourself.
        
           | janmo wrote:
           | I think this is an important point. I would consider living
           | in a remote area, but usually the internet access there goes
           | from very slow to non-existing.
        
             | dubcanada wrote:
             | None of the information has anything to do with a specific
             | location, every single individual house has specific
             | internet options.
             | 
             | You can't say, oh all of rural Japan gets 10mbps. Cause
             | every different part has different options.
             | 
             | You need to go look at a real estate website that has
             | internet availability information.
        
             | hocuspocus wrote:
             | This is Japan we're talking about. Remote isn't _that_
             | remote. Like numpad0 mentioned above, even in the outskirts
             | of small towns, you can typically expect aerial fiber
             | pretty much everywhere, and the actual broadband options
             | will depend on the last few meters.
        
               | janmo wrote:
               | Thank you, this is the kind of information I was looking
               | for.
        
             | vnchr wrote:
             | Coming soon to your farm... StarLink!
        
             | jacoblambda wrote:
             | If the house is in the few thousand to tens of thousands of
             | USD range, you could probably afford to pay for a fibre run
             | out to your property with the money saved compared to the
             | cost of a house in the US or EU.
        
         | 3np wrote:
         | Japan has extremely good fiber connectivity. You can live in a
         | small cottage high up on the mountainside of a small village
         | and have the NTT monopoly get you near-1Gbps installed for
         | 20,000 yen and ~5,000 per month. You can usually get cable for
         | cheaper and even the LTE can be good enough for many.
        
           | bruxis wrote:
           | I'm not sure where you have this impression from, but I can
           | assure you that in many non-urban areas getting fiber
           | (hikari) is a non-option.
           | 
           | Many folks resort to LTE or WiMax to compensate, which has
           | poor performance in general and even worse in poor weather.
           | 
           | For context, even in Tokyo, you would be surprised at the
           | number of apartment buildings that come with shared 100Mbit
           | lines for 30+ units, with no way of installing faster direct
           | lines (in large part due to owner/agency refusal).
        
             | numpad0 wrote:
             | It's NTT policy or something to lay only single 1Gbps fiber
             | per building, ever, so if you're living in a single family
             | home with nice front yard you're forced to share the fiber
             | with -- no one else. But for 30 units apartment your
             | connection is at mercy of 25 kids trying to download Apex
             | Legends in background while taking remote schooling
             | classes.
             | 
             | If you're desperate find a place that already has or allows
             | Sony Nuro installation. They lay fibers given owners'
             | permission, whereas NTT won't and just send you a Fast
             | Ethernet VDSL modem(with a blue Cat.5 8P4C cable to match!)
        
         | walrus01 wrote:
         | One of the things that has led to widespread gigabit class FTTH
         | in Japan is that they're not averse to using overhead utility
         | poles and lines almost everywhere. As an ISP it's much less
         | costly and complicated to do real FTTH if your infrastructure
         | can be purely aerial.
        
       | [deleted]
        
       | eloff wrote:
       | Japan is very difficult to immigrate into, and I'm not sure what
       | foreign ownership of property is like - I'm guessing unfriendly.
       | Someone will likely comment in reply if they know better.
       | 
       | These are also very barely within the definition of a house by
       | Western standards. Houses in Japan, especially these ones are
       | less permanent affairs. Poor construction quality, no central
       | heating, etc.
       | 
       | This is not a good opportunity for people outside of Japan.
        
         | 3np wrote:
         | 1. Buy property for >= 5 mil JPY
         | 
         | 2. Use it as capital for your newly formed Japanese company
         | 
         | 3. Rent it out to yourself or someone else, or AirBnb it
         | 
         | You should now be eligible for a Business Manager visa.
         | 
         | I rent and don't own any property, but I've seen people do
         | this.
        
           | csomar wrote:
           | 5 mil JPY is not a lot of money if I'm doing the conversion
           | right. The question is, how difficult is the Business Manager
           | visa to get.
        
           | eloff wrote:
           | That's just a visa, not immigration which would require
           | permanent residency status.
        
         | aikinai wrote:
         | This is one of those factoids people constantly repeat because
         | it sounds like it would be true. Japan is far easier to
         | immigrate to them most other developed nations, especially the
         | US, which most on this site will be comparing to.
         | 
         | Also it's very easy for anyone to buy property.
        
           | tormeh wrote:
           | > This is one of those factoids people constantly repeat
           | because it sounds like it would be true
           | 
           | Preventing immigration (both permanent and temporary) has
           | been a political priority in Japan for centuries. Are you
           | saying this has changed recently? The US is a bit special
           | because even with the hurdles it has it still receives a lot
           | of immigrants. Japan, to my knowledge, would never accept
           | being in such a position.
        
             | bluepizza wrote:
             | > Preventing immigration (both permanent and temporary) has
             | been a political priority in Japan for centuries.
             | 
             | Implying that the very immigration friendly modern Japanese
             | government is the same as Tokugawa Ieyasu is almost as
             | absurd as implying that Britain is a divorce crazy country
             | due to Henry VIII.
        
             | _game_of_life wrote:
             | I am also surprised but you can check and it does indeed
             | seem the majority (90%+) that apply for citizenship every
             | year are accepted...
             | 
             | I would hazard a guess this is because of their population
             | crisis, maybe? They have one of the oldest populations in
             | the world and their birth rate is still less than 1.5.
             | That's a recipe for social and economic disorder, with
             | current levels of automation.
        
           | _game_of_life wrote:
           | Huh, TIL...
           | 
           | Looking at some sources the issue seems to be fairly complex,
           | however it does indeed seem fairly easy relative to other
           | countries like Canada to gain Japanese citizenship (though
           | very few apply).
           | 
           | https://en.wikipedia.org/wiki/Immigration_to_Japan#Immigrant.
           | ..
           | 
           | Looking at this and other citizenship guides, the main
           | requirements seem to be that:
           | 
           | 1. You live and work in Japan for 5 years (not counting
           | student visas)
           | 
           | 2. Are the age of majority in your country and over 20
           | 
           | 3. Have not broken any laws while in Japan
           | 
           | 4. Are able to support yourself financially and are willing
           | to renounce other citizenships
           | 
           | It seems that about 90% of people that apply for
           | naturalization are accepted. Yet less than ~10,000 are
           | accepted every year, so applying for citizenship seems
           | unpopular relative to other G7 countries.
           | 
           | Neat. I wonder why I was so certain that immigration was next
           | to impossible and only visas were granted?
        
             | bluepizza wrote:
             | When requesting naturalization, you have to go through
             | interviews in Japanese, and send a handwritten letter in
             | Japanese as well.
             | 
             | That puts a lot of permanent residents off - why go through
             | that when they can already stay indefinitely anyway?
        
               | slim wrote:
               | I find this selection process fair and efficient
        
             | novok wrote:
             | Sometimes in immigration, what is written down and what is
             | reality is two different things. Ex: In panama I've heard
             | of legit citizenship applications just rotting on the desk
             | for many years.
             | 
             | In a country like japan where it's more by the book, I'm
             | not sure although. To get PR it takes 10 years to 1 year,
             | so that might be a barrier, or maybe it's just a place that
             | doesn't pay well + language barriers and thus wasn't that
             | much of a draw to immigrate to?
             | 
             | https://allabout-japan.com/en/article/7143/
        
             | walrus01 wrote:
             | In addition to the points above I have heard that you need
             | to pass the Japanese reading/writing/verbal equivalent of a
             | TOEFL test with a fairly high score.
        
           | rsj_hn wrote:
           | When most people say "immigrate", they are not referring to
           | foreign worker status that allows for long term residency,
           | but actual naturalization.
           | 
           | Japan has some pretty high bars and the number of naturalized
           | people is quite small -- about 10,000 per year, and these are
           | primarily Koreans of Japanese descent. The high bar is not
           | the "good moral character" bit (which is also required but
           | that is common) but rather financial stability. So if you are
           | from a wealthy nation and a high earner you will be fine, but
           | that is not the typical immigrant profile, and so for this
           | reason there are very few naturalized immigrants in Japan
           | compared to US or other nations that do not have financial
           | stability as a criteria for naturalization.
        
             | selimthegrim wrote:
             | You probably meant Japanese residents of Korean descent?
        
             | riffraff wrote:
             | > When most people say "immigrate", they are not referring
             | to foreign worker status that allows for long term
             | residency, but actual naturalization.
             | 
             | do they? I always thought it referred to long term
             | residency.
             | 
             | E.g. I consider myself an immigrant even tho I do not have
             | the citizenship of the country I live in.
        
               | rsj_hn wrote:
               | In English at least, "immigration" and "immigrants",
               | refer to _permanently_ moving to a new country, not long
               | term residency or guest worker programs. I.e. you are
               | intending to never return to your original country. If
               | you are intending to return, then you are a long term
               | resident, but not a permanent resident.
               | 
               | e.g. Merriam-Webster: "a person who comes to a country to
               | take up permanent residence"
               | 
               | OED online: "a person who comes to live permanently in a
               | foreign country."
        
               | sixhobbits wrote:
               | This is just playing with grammar. You can live somewhere
               | permanently (in the grammar sense) while on a temporary
               | permit (in the legal sense) and most people who emigrate
               | go through various stages of (legal) temporary permits
               | before being granted permanent residence (eg often
               | requires 5 years of uninterrupted "temporary" residency)
               | or citizenship (often 10-15 years).
        
               | cedilla wrote:
               | The majority of migrants don't permanently move to a new
               | country. And really, does it make sense to categorize
               | people on their unknowable intention?
               | 
               | Especially since this can clash with legal reality.
               | Undocumented migrants sometimes intend to stay
               | permanently, but as soon as immigration laws are
               | enforced, they will leave. And many foreign workers who
               | intend to return to their home country never do so,
               | rendering the distinction moot.
        
             | wenc wrote:
             | > When most people say "immigrate", they are not referring
             | to foreign worker status that allows for long term
             | residency, but actual naturalization.
             | 
             | It depends on how the country defines it, but to
             | "immigrate" doesn't generally mean naturalization.
             | 
             | Immigration means to obtain _permanent_ residency (in the
             | U.S., a green card or LPR status; in Canada, Australia, NZ,
             | landed immigrant or permanent resident status; in the UK,
             | indefinitely leave to remain). Permanent residency
             | generally confers most rights of citizenship, apart from a
             | few like the right to hold a passport of that country, to
             | vote (exceptions exist), etc.
             | 
             |  _Naturalization_ means to obtain _full citizenship_. It 's
             | the step that comes after immigration, and it is optional.
             | Not all immigrants elect to naturalize for various reasons
             | (e.g. wanting to keep original citizenship in cases where
             | dual citizenship is prohibited, tax rules, military
             | service, etc.). Some choose to remain permanent residents
             | forever, and they can. It's their choice.
             | 
             | And you're right -- if someone has a temporary status like
             | a foreign worker status (even if it's infinitely
             | renewable), that would be considered neither immigration
             | nor naturalization.
             | 
             | I'm not sure how things work in Japan, but it is possible
             | for a country to be easy to immigrate into, but hard to
             | naturalize in. These two things can be simultaneously true.
             | 
             | (in other words, easy to get permanent resident status, but
             | hard to get citizenship)
        
               | cedilla wrote:
               | Immigration doesn't imply permanency. Indeed, most
               | migrants don't aim for permanent residency.
               | 
               | There is a widespread idea to count permanent migrants
               | only, but in practice, that's impossible to determine in
               | the first place, and has no tangible consequences either.
               | 
               | Think about undocumented migrants, who do not have the
               | right to abode, permanent or otherwise. Think about
               | nations that don't offer permanent residency to newly
               | arriving immigrants, or at all. Think about people who
               | already have the right to abode (e.g. a citizen of
               | Ireland in the UK) - are they immigrants without setting
               | foot in the country?
               | 
               | Tying migration to a permanent status just doesn't make
               | sense. Indeed, the UN Migration Agency (IOM) defines a
               | migrant as:
               | 
               | > any person who is moving or has moved across an
               | international border or within a State away from his/her
               | habitual place of residence, regardless of
               | 
               | (1) the person's legal status;
               | 
               | (2) whether the movement is voluntary or involuntary;
               | 
               | (3) what the causes for the movement are; or
               | 
               | (4) what the length of the stay is.
        
               | fbcpck wrote:
               | > Immigration doesn't imply permanency. Indeed, most
               | migrants don't aim for permanent residency.
               | 
               | I believe you're confusing _immigration_ [0] and
               | _migration_ [1]. The former aims for permanent residency
               | or naturalization, the latter is temporary.
               | 
               | [0]: https://en.wiktionary.org/wiki/immigration
               | 
               | [1]: https://en.wiktionary.org/wiki/migration
        
               | cedilla wrote:
               | I don't. Immigrants and emigrants are the same just seen
               | from different perspectives, with migrants describing
               | both.
               | 
               | Please note that general dictionaries are always a poor
               | source when discussing word definitions. Their aim is to
               | clarify word usage, not to define terms.
               | 
               | Wiktionary is also sadly of garbage quality, and I say
               | that as a former very active wiktionary editor.
        
               | [deleted]
        
           | eloff wrote:
           | Immigrate as in obtain permanent residency.
        
           | spookybones wrote:
           | Do you know any websites/resources with more info on this?
        
       | [deleted]
        
       | aphextron wrote:
       | How's the internet in these towns?
        
         | trhway wrote:
         | that reminds about the Finland approach - bunch of years ago i
         | read that the government specifically targeted high speed
         | internet expansion into rural/remote areas (in particular the
         | Baltic sea shores which are beautiful to live on) to provide
         | jobs and thus avoid depopulation.
        
       | Tiktaalik wrote:
       | I wonder how this works in the context of the fact that Japanese
       | houses, unlike those in the rest of the world, supposedly
       | depreciate to $0 in just 25 years.
       | 
       | For example will a bank even lend money against such a home or is
       | there some underlying assumption that you'd have to demolish and
       | rebuild new before they'd even consider it?
       | 
       | The land is seemingly worth nothing and the building itself worth
       | zero or really a liability.
        
         | brundolf wrote:
         | > The land is seemingly worth nothing and the building itself
         | worth zero or really a liability
         | 
         | This doesn't make any sense to me. What economic mechanisms
         | cause it to be true?
         | 
         | > Japanese houses, unlike those in the rest of the world,
         | supposedly depreciate to $0 in just 25 years
         | 
         | Same for this.
         | 
         | I've never heard of either of these being true; do you have a
         | link?
        
           | trophycase wrote:
           | Lots of houses are liabilities. If you've ever been to a
           | place like detroit, where they are abandoned, the roofs are
           | half collapsed, there is water damage everywhere, etc. The
           | cost to repair is higher than destroying it and building
           | something new.
        
           | bhickey wrote:
           | https://www.economist.com/finance-and-
           | economics/2018/03/15/w...
        
             | ryanSrich wrote:
             | https://archive.is/5eFO6
        
             | brundolf wrote:
             | Huh, that's fascinating
        
           | gruez wrote:
           | first result for "japanese house depreciation":
           | https://www.theguardian.com/cities/2017/nov/16/japan-
           | reusabl...
           | 
           | >Unlike in other countries, Japanese homes gradually
           | depreciate over time, becoming completely valueless within 20
           | or 30 years.
        
             | tpmx wrote:
             | _This scrap-and-build approach is a quirk of the Japanese
             | housing market that can be explained variously by low-
             | quality construction to quickly meet demand after the
             | second world war, repeated building code revisions to
             | improve earthquake resilience and a cycle of poor
             | maintenance due to the lack of any incentive to make homes
             | marketable for resale._
        
               | masklinn wrote:
               | Also high summer humidity which basically gives the
               | choice between extensive maintenance requirements (which
               | requires that the house was built to allow for it) or...
               | just tearing down the house before it's gotten to rot.
               | 
               | I also expect the situation is different in Hokkaido:
               | it's drier with lots of winter precipitation (spring is
               | the driest season in sapporo versus winter for tokyo),
               | and the more extreme winter weather probably leads to
               | higher quality construction (for instance central heating
               | and extensive insulation is common in hokkaido while it's
               | quite rare on honshu which tends to go by "tactical
               | heating" and quite drafty houses).
        
           | lazide wrote:
           | Some good peer links. There are several ways to value things
           | 
           | - economic value (how much money it produces or how much
           | money it saves by having it), both current and
           | projected/speculative.
           | 
           | - emotional value (this is my grandfathers house, I wouldn't
           | part with it for anything)! Or FOMO, or 'being established'.
           | How much is it worth to feel that way?
           | 
           | - scarcity value. You need x or something terrible will
           | happen, it's in a bidding war, how much can you spend to win?
           | This can also be current or projected.
           | 
           | The signal you're seeing is that for people eligible to buy
           | the property, it is near zero value on all these axis.
        
           | Shadonototro wrote:
           | well, if they sell the houses for $500, it is because that
           | statement is true, over time, they worth nothing because
           | nobody wants to live in the country side, what you buy for
           | $500 is worth $500
        
         | glandium wrote:
         | As siblings have already said, the land is not worth nothing,
         | but the article doesn't seem to say, from a quick glance,
         | whether property of the land is included in the transaction.
         | Because in Japan, land can be rented too (yes, you can rent
         | land to build something on top of it, that's called shakuchiken
         | (Jie Di Quan )).
        
           | panny wrote:
           | Not in every case naturally, but land can also be worth
           | nothing in circumstances where it has become unstable. Japan
           | has places where old homes exist and new home building is not
           | permitted because it has become a hazard zone for landslide.
           | No wells can be dug, no foundations, it may trigger a
           | collapse which affects your surrounding neighbors.
           | Eventually, earthquake will take the place and no one will
           | buy in the area with this knowledge.
        
         | 3np wrote:
         | It's rare that the land is actually worth nothing, but it can
         | be worth less than the loss of liquidity + the cost pf
         | demolishing the current house (which you're right on).
        
         | masklinn wrote:
         | > The land is seemingly worth nothing and the building itself
         | worth zero or really a liability.
         | 
         | The land is worth as much as it otherwise is. This is
         | essentially a very large subsidy towards interesting people in
         | living in rural areas (which is where most of those houses
         | would be).
         | 
         | > For example will a bank even lend money against such a home
         | or is there some underlying assumption that you'd have to
         | demolish and rebuild new before they'd even consider it?
         | 
         | The bank doesn't care about the house if the building is
         | considered to have no value either way.
         | 
         | I may be mistaken but my understanding is that japanese houses
         | depreciate quickly because they're considered largely
         | disposable, at least when it comes to "modern" homes.
        
           | Tiktaalik wrote:
           | I really wonder how the lending against houses/land works in
           | Japan.
           | 
           | It seems like the timing of things is such that by the end of
           | your 25 year mortgage the house is worth $0. Ok.
           | 
           | So what happens if after this point you want to borrow
           | against your house?
           | 
           | In NA nbd since the bank knows it can sell the house. In
           | Japan is the bank squeamish about whether they can sell the
           | house because the house is "worth $0."
           | 
           | Similarly I wonder if you wanted to buy a house that is
           | "worth $0" is the bank only going to give you a mortgage if
           | you are going to knock it down and build a new house?
        
             | masklinn wrote:
             | > It seems like the timing of things is such that by the
             | end of your 25 year mortgage the house is worth $0. Ok.
             | 
             | > So what happens if after this point you want to borrow
             | against your house?
             | 
             | You... don't? You never did? What do you fail to understand
             | in "the land is worth money, the house is not"?
             | 
             | > In NA nbd since the bank knows it can sell the house. In
             | Japan is the bank squeamish about whether they can sell the
             | house because the house is "worth $0."
             | 
             | Japanese banks are squeamish either way, but they can sell
             | the land. The land is not worth $0.
             | 
             | > Similarly I wonder if you wanted to buy a house that is
             | "worth $0" is the bank only going to give you a mortgage if
             | you are going to knock it down and build a new house?
             | 
             | You're not buying a house, you're buying land, which has a
             | house on top of it, which you may want to replace.
             | 
             | When you buy a car you buy _a car_ , you don't buy the seat
             | upholstery, and you can replace that. Well the land's the
             | car, it's the actual thing.
        
               | Tiktaalik wrote:
               | It's easier to sell land with a building on it that is
               | immediately useable. This impacts bank decision making.
               | 
               | For example when you buy bare land recreational property
               | you often have to pay cash because no lender wants to
               | have bare land on their books.
               | 
               | You will struggle to get a lender to give you any money
               | for a condemned building (I've tried).
               | 
               | In Canada it is simple to get a mortgage on on a property
               | with a house on it because there's a "usable" house on it
               | and the bank can easily sell the property.
               | 
               | Perhaps this is the same in Japan as well, even if the
               | house is 25 years old, but it depends on how they look at
               | that 25 year old "worth $0" property. Perhaps as long as
               | it's "livable" lenders don't mind and one doesn't run
               | into the road blocks one would run into if they were
               | trying to buy bare land.
               | 
               | Or perhaps it's simply much easier to buy bare land in
               | Japan than it is in Canada!
        
         | resoluteteeth wrote:
         | > For example will a bank even lend money against such a home
         | or is there some underlying assumption that you'd have to
         | demolish and rebuild new before they'd even consider it?
         | 
         | If they're being sold for $500 why would you expect a bank to
         | want to lend money against it? It already has no value as
         | collateral.
        
           | Tiktaalik wrote:
           | My concern would be that if the land is worth ~$0, and
           | building worth ~$0, that the bank won't even lend you money
           | to build a new building.
        
             | lazide wrote:
             | It can actually be even weirder. The land might be worth
             | -$money (in some cases like Detroit, tax liens and other
             | issues meant the '$1 house' was actually $50k+ because of
             | the liens.)
             | 
             | And yes, no sane bank is going to lend against collateral
             | that is fundamentally worthless. Construction loans are
             | problematic because the property can be worth -$$$ if say
             | the work isn't finished and the builder starts putting
             | (western concept, not sure how it maps to Japan) builders
             | liens on the property for all the work they did, and then
             | it all rots because no one put windows or a roof on it.
             | 
             | These properties are at these prices because they are
             | currently fundamentally not worth more. They sit on the
             | market because they won't even sell at that price.
        
             | tormeh wrote:
             | The bank could take collateral in something else than the
             | house. But if you have that kind of collateral, you might
             | not need a loan in the first place...
        
           | onlyrealcuzzo wrote:
           | LOL - on a 30 year term, too!
           | 
           | =PMT(0.02/12, 30*12, -500)
           | 
           | $1.85 per month!
        
       | city41 wrote:
       | Sounds similar to the one euro homes in Italy. At least according
       | to this video, that program seemed pretty successful:
       | https://www.youtube.com/watch?v=nP2vtDLTAgM
        
       | siruncledrew wrote:
       | I wonder how long of a lasting impression this creates? I've seen
       | videos from Japanology on Youtube about rural communities trying
       | to come up with incentives and revitalization measures to varying
       | success. From an outside perspective, it's commendable to see
       | small communities care and try to be creative and "startup-y".
       | 
       | At the same time, this also is like the analogy "a solution
       | looking for a problem". Supply exists, but demand does not.
       | 
       | For example, across the Rust Belt in the US, probably someone
       | could buy a house for $10k or an entire block of homes for dirt
       | cheap, but it would be rundown and not very much fun to live in a
       | town with more inconveniences than amenities.
       | 
       | Unless someone is trying to do the homesteading(?) thing, having
       | a free/cheap house somewhere is only a small part of the
       | equation. Maybe I'm wrong, but I would bet even if someone from a
       | city like San Fran, LA, or NY took a deal to live in (e.g.) rural
       | Missouri in a $500 house, they wouldn't be able to last 2-3 years
       | before going stir-crazy.
        
         | visualradio wrote:
         | > For example, across the Rust Belt in the US, probably someone
         | could buy a house for $10k or an entire block of homes for dirt
         | cheap
         | 
         | In 2021?
         | 
         | > Maybe I'm wrong, but I would bet even if someone from a city
         | like San Fran, LA, or NY took a deal to live in (e.g.) rural
         | Missouri in a $500 house, they wouldn't be able to last 2-3
         | years before going stir-crazy.
         | 
         | According to zillow, uninhabitable \ barely habitable wood
         | frame homes requiring substantial repairs still sell for about
         | $30,000 in rural Missouri.
        
           | na85 wrote:
           | I think the point, though, is that irrespective of the exact
           | price in the Rust Belt, prices are a fraction of those in
           | desirable places like SF or NYC.
           | 
           | You can't create demand by government fiat. People aren't
           | living in rural Japan or Missouri because nobody wants to
           | live there, for a littany of reasons of which the direct
           | financial cost of home ownership is but one.
        
             | visualradio wrote:
             | I think the bigger issue is that prices may be extremely
             | inflated in both locations, relative to construction cost
             | of replacing current improvements with new improvements of
             | equal utility, due to national or global real estate credit
             | bubbles, which have the power to wreck the economy.
             | 
             | The external value of the location should not be heavily
             | capitalized into the sales price regardless of the
             | amenities of the location. When someone asks $400,000 for a
             | building which costs $200,000 to replace, the buyers are
             | likely to build a new building next door for cheaper unless
             | the land is impossible to acquire or being held off the
             | market at high prices. The duration which private owners
             | are allowed to hold vacant land off the market and hold out
             | for higher prices is ultimate determined by public
             | financial policy.
        
           | MattGaiser wrote:
           | https://www.zillow.com/homes/for_sale/house_type/?searchQuer.
           | ..
           | 
           | I found some dirt cheap ones.
        
             | visualradio wrote:
             | The cheapest listing I see in Iowa City is $25,000 for a
             | vacant lot with no building.
             | 
             | edit: This is a good indication of real estate bubble btw.
        
           | walrus01 wrote:
           | A while back I did some research related to this, and while I
           | wouldn't want to get into the uninhabitable house part of it,
           | there do appear to be habitable and in fairly good condition
           | 3BD size houses in _very rural_ areas for sale in some small
           | midwest towns in the USA for around $40-50k. If you go look
           | at some small towns in southern IL and set the zillow max
           | price to 50-60k you 'll see them.
           | 
           | At the very lowest end of the scale I found habitable houses
           | in the 20-30k range in KS, OK and that area in small farming
           | towns that have seen significant post-1960s exodus and
           | population decline.
           | 
           | If you have the budget to build your own custom house and do
           | something like an off grid solar setup, there's plenty of
           | places in rural eastern WA state where you can buy 20 or 40
           | acres for $1k per acre.
        
       | enahs-sf wrote:
       | It would be interesting for the Japanese government to rent some
       | of these properties out short term. I'm sure lots of tourists
       | would be willing to rent them for short periods of time. Although
       | it's a lot of overhead to facilitate, maybe it would allow for
       | enough revenue to keep the properties maintained and managed.
        
         | eloff wrote:
         | These are not in touristy areas. There would be little to no
         | demand. If you want to stay in small town rural nowhere there
         | is no reason to go all the way to Japan for that.
        
           | dheera wrote:
           | I spent 2 weeks biking around rural Japan, away from touristy
           | areas, and it was fantastic, to say the least.
           | 
           | Easy access to Japanese food, small town Japanese aesthetics,
           | and unique landscapes are what made it worth it.
           | 
           | Not to mention that even if you want to go to some of the
           | more popular areas of Japan, it's rather easy to get to them
           | from the rural areas with the excellent public transit
           | infrastructure they have, so if you have a job that you can
           | work remotely, and you like the rural daily lifestyle but
           | occasional urban fun and weekend trips to the city, Japan is
           | just about as ideal as a place as you can get to have that
           | lifestyle.
        
           | hungryforcodes wrote:
           | Unless of course you like Japan.
        
             | masklinn wrote:
             | Even if you like japan, unless you like / intend the small-
             | time rural farmer aesthetic. Which I don't think most
             | people who "like" japan really do.
        
         | janmo wrote:
         | I don't think Japan is visited by enough tourists for this to
         | work. The article mentions 8.49 million vacant homes.
        
           | Macha wrote:
           | There's also the question of if these homes are located near
           | where tourists go. If someone's looking to visit Tokyo,
           | they're not going to be interested in staying in Wakayama.
        
       ___________________________________________________________________
       (page generated 2021-05-31 23:02 UTC)