Condomanic-depressive

January 24, 2016 by

DSCF2154Last week the media reported that the Ministry of Land, Infrastructure, Transport and Tourism was devising a plan to limit the number of abandoned houses and apartments in Japan to no more than 4 million by fiscal 2025. As of 2013, the year the results of the last ministry 5-year survey were released, the number of vacant homes in Japan was estimated to be 8.19 million, about 40 percent of which–3.18 million–were not on sale or for rent. At the present rate, the number of abandoned abodes would rise to 5 million by 2025, so the ministry has decided to put into effect measures to bring down that number. They will announce these measures in March.

According to reports, the plan would involve “putting some abandoned houses and apartments back on the market and removing others,” as well as “offering such houses and apartments to low-income earners and families with children.” In addition, the government would also promote “the replacement of aging condominiums.” Any of these measures would require a much larger existing home market, which was worth about ¥4 trillion in 2013. The ministry thinks it can boost it to ¥8 trillion by 2025 and increase the remodeling and renewal market from ¥7 to ¥12 trillion. Since there would be no attendant increase in the population, the new home market would probably have to decrease in order for these targets to make sense; that and salaries would have to see a boost.

Since new housing starts has always been a chief economic motivator in Japan, it’s difficult to imagine that the government would do anything to discourage new home construction, and as long as it’s a priority it will be difficult to reduce the vacant home problem. For one thing, only new home buyers get tax breaks. More to the point, while the problem of abandoned single-family homes can be addressed in a relatively direct fashion–either fix them up to make them sellable or tear them down–the problem of abandoned units of collective housing is not so simple. For one thing, in order for a building to be rebuilt or “replaced,” four-fifths of the owners of the building’s units must approve, and that’s a hard portion to reach, especially given the fact that a lot of condo owners do not live in their units but rather rent them out. According to Yomiuri Shimbun, the government is thinking of changing the law so that absentee owners of condo units can be ignored if for whatever reason they do not participate in the vote for rebuilding. Read the rest of this entry »

Year Zero (2)

January 2, 2016 by

CIMG3303The landscaping took more than two weeks. It rained off and on, thus making work a bit difficult. We were surprised at how much equipment was needed to do what we had assumed was a fairly simply job, and wondered how they could charge so little when they were using backhoes, steam shovels, and cranes installed on the beds of large trucks. One of the reasons we didn’t order any concrete work was because we didn’t think it was worth the expense, the reason being that you had to hire an outside company with a cement mixer regardless of how much cement you were going to pour, but in any case on a few days there was quite a bit of equipment on the property.

CIMG3478The first order of business was moving the huge mound of dirt displaced by the septic tank. An older man did that and it wasn’t until the second day or so that we realized he was the father of the huge guy in charge of the project. It turned out to be a fairly tedious task. Since carting the dirt away would have cost us more money we asked if he could distribute it evenly along the akamichi–the strip of city-owned dirt road that bordered the southeast side of our property. We didn’t bother asking for permission from the city since it was obvious no public vehicle was ever going to use it. The old guy did as we asked for no extra fee, though to us it looked like extra work, since after depositing the dirt on the road he had to spread it around. In the end he did quite a good job of making it look inconspicuous–except that at the far end of the dirt road, just after it reached past the end of our property, there was a noticeable dip. Read the rest of this entry »

More Than Enough

October 17, 2015 by
Pamphlet from local government explaining how property is assessed

Pamphlet from local government explaining how property is assessed

We’ve written about Japanese property taxes a few times and in our JT column we once mentioned that the system for assessing property values and calculating the amount owed is complicated. Consequently, local governments, who do all this work based on laws implemented at the national level, sometimes make mistakes.

Apparently, the problem is even more widespread than we thought. According to a survey conducted by the Ministry of Internal Affairs, between 2009 and 2011, 97 percent of local governments reported at least one case of overcharging for property taxes, though, of course, that would indicate there are probably many more cases. A recent issue of the tabloid-style weekly Friday interviewed an official from a support network for “asset preservation” who pointed out that property taxes are very different from income taxes in that they are completely determined by the authorities. With income taxes, at least the taxpayer can see how his taxes are calculated since he has the documents with all the pertinent information. But property taxes are determined by the local tax office and the property owner simply receives a bill every year saying how much he owes without any explanation of how the bill was calculated, and unless the taxpayer has knowledge about the property tax laws and how they may apply to his particular circumstances, he won’t know whether or not the amount charged might be wrong.

The extent of the problem was illustrated in a feature in the Oct. 5 Asahi Shimbun, which cited a number of recent high-profile cases. Last May, the owners of apartments in a complex in Isehara, Kanagawa Prefecture, found out that they have been paying too much property tax for their units since the complex was built in 1972 by the then national housing corporation. Condominium values are assessed according to floor area, and almost all of the 600 units in the complex are about 63 square meters, but they also have verandas. The city tax office was including the verandas, which are about 8 square meters, into the assessment, but verandas are considered kyoyo, or common property, meaning they don’t belong to individual owners, but rather to all the owners, just like corridors and building foyers. The assessment for common property in a condo is divided up among all the owners but taxed at a much lower rate than property that is owned individually. Read the rest of this entry »

Fill ’em up

July 18, 2015 by

DSCF3268The central government is supposedly working on new measures to deal with the ballooning vacant home problem, and it’s no secret they would prefer local governments handle the matter, even though most local governments don’t have any extra money to throw at it. Recent media reports, however, indicate that Maebashi, the capital of Gunma Prefecture, is working on a very ambitious program for not only addressing the vacant home problem, but increasing the city population at the same time.

According to a 2013 survey, the vacancy rate in Maebashi is 15.9 percent, which is higher than the national average of 13.5 percent. Officials decided they had to do something about it and boldly earmarked a ¥200 million budget program. The idea is that the owner or purchaser of a vacated property receives subsidies for renovating an existing structure. Under such circumstances, the owner would receive either ¥1 million from the city or one-third of the cost of renovation, whichever is higher.

Other local governments have similar programs, but what makes Maebashi’s different is the “special cases” that offer even more money. For instance, the city will pay a resident of Maebashi ¥200,000 toward the renovation of a vacant home if it is within one kilometer of the person’s parents’ home, thus encouraging the children of elderly or soon-to-be-elderly city residents to be in close proximity so as to be able to take care of them. In the same spirit, ¥200,000 extra will also be given to people who renovate a vacant property into a two-generation abode as well as to extended families who tear down a vacant house and replace it with a new two-generation home. Read the rest of this entry »

Sub Standard

June 20, 2015 by

CIMG3720Last year we wrote a Home Truths column about real estate schemes being promoted to property owners whose legacies would be subjected to higher inheritance taxes under new government rules. Since the government also is in thrall to the construction industry, it offers tax cuts and deductions to people who build on their property or improve it. The focus of our report was on rental apartment buildings that property owners could have built by companies that would then manage them for the owners, thus killing two birds with one loan: greatly reducing the inheritance tax burden for the owners’ children, and bringing in income from the property itself.

However, according to a special report that NHK aired a few months ago, these schemes have turned out to be a great deal of trouble for property owners. Typically, a real estate company gets a landowner to build an apartment building on his piece of land and helps the landowner secure a loan. The company then guarantees a certain amount of “rent” to the landowner for the next thirty years and subleases the apartments. The company does all the work: solicting tenants, maintaining the building, collecting rents, etc. The owner simply pays for the structure and sits back and collects money. Or, at least, that’s how the scheme is sold.

The NHK program profiled an elderly farm couple living in Gunma Prefecture. Though both are in their 70s, they continue to work the land, but don’t have the energy to work all of their land any more. However, if they let part of it go fallow, the property taxes for that portion will go up. And then there was the inheritance taxes to think about when they died. Ten years ago they were approached by a real estate company who had a plan that would solve all their problems and set them up with a monthly income for the rest of their lives. All they had to do was take out a ¥100 million loan to build an apartment building on the unused portion of their land. They took the offer. Read the rest of this entry »

Year zero (1)

April 19, 2015 by

CIMG3311Two weeks ago we received a phone call from N, the salesman at A-1 whom we worked with when we built our house. There was a young couple who were thinking of asking A-1 to build a house for them, but they hadn’t yet secured a piece of land. Apparently, their desires are similar to what ours were: an area that had a bit more nature than your average subdivision. They currently lived in Matsudo, which is about 45 minutes west of us.

The request was a surprise. A-1 doesn’t advertise, since advertising adds to their overhead and thus to the cost of their products. They don’t build model homes for the same reason. When a potential customer wants to get an idea firsthand of what their homes are like, they ask past, presumably satisfied customers if they can bring the potential customers in for an inspection. We did it ourselves when we started looking for homes and read about A-1’s philosophy and design concepts, and were impressed, much more so than with any manufacturer’s model home display. In A-1’s case, you get to see how the owner is actually living in the house designed for them.

However, we thought our home may have been too individualistic for this kind of tour. When N called we had just received the property tax bill for the house and land. Since we moved in after January 1, 2014, we didn’t have to worry about a tax bill for the house until this calendar year, and last summer, when a city official came to assess our property, he almost laughed, implying that what we had wasn’t really worth that much. The tax bill seemed to bear out that implication. The estimate for the house came to less than ¥50,000. Of course, that wasn’t based on an assessment of the market value of the house, but nonetheless, even if you take into account the special deduction that reduces the amount due on a building for tax purposes to one-sixth its assessed value, the assessment was much less than what we paid for it a year ago. We’re not sure what that means, but we do understand that our house is unusual and, perhaps, not the kind of thing that would attract the average buyer: the kitchen and bath are on the second floor, the bedroom on the first; few doors and walls. It was designed to be inexpensive and to satisfy our peculiar needs, so it wasn’t exactly marketable, especially when you compare it to the vast majority of Japanese homes, which, we assume, reflect market demand. We had to assume that N was bringing the couple here because of the environment–the surrounding woods and such–which would give them an idea of what A-1 could accomplish in such a place. Read the rest of this entry »

Home Truths for April 2015

April 5, 2015 by

HereCIMG3976 is our latest Home Truths column, about public housing in Japan and, more specifically, Tokyo. One point inadvertently removed during the editing process is that Tokyo’s public housing system is called toei jutaku. Koei jutaku is a general term for all public housing, anywhere. Kuei jutaku is public housing facilities run by an individual city ward (ku), etc.

Too much sharing

March 20, 2015 by
A share house in Adachi Ward, Tokyo

A share house in Adachi Ward, Tokyo

The Western, or, at least, American, idea of communal living has never caught on in Japan. It’s common for college students in the U.S. to rent a house together and share living expenses, and many continue this sort of living arrangement until they get married or make enough money to live alone. In Japan, it’s more common for college students who live away from home to rent small rooms if they don’t live in dormitories, but in any case, out of school they tend to live with their parents until they marry or may continue renting small apartments by themselves. The concept of small-scale shared abodes is rare, not so much because it’s not popular but because the housing market has never been accepting of such a situation. Landlords tend to be uncomfortable with multiple renters.

But for at least a decade now, something called “share houses” have become more prominent in Tokyo and other major cities. In most cases, they are commercial enterprises, houses built and maintained by companies for the express purpose of making money, and in that regard there’s very little difference between them and traditional Japanese apartments where individual units share toilet and kitchen facilities. What you usually get is a number of bedrooms, a communal living space that includes a kitchen, a communal shower, and a toilet or two. The tenants are coed and may or may not interact with one another. Of course, there has also been an increase in the number of conventional houses renovated so as to accommodate multiple individuals and which are closer to the American “roommate” style living situation, but share houses are more common.

But not common enough. A story that Tokyo Shimbun has been following since last fall shows that the authorities still don’t know what to do about share houses in terms of legal administration. An article that appeared in the paper in January described an anonymous, 41-year-old single woman and her daughter who started living in a share house in Kunitachi, Tokyo, in the spring of 2013. The woman makes a living as a freelance illustrator, but her income is not stable, so she applied for child allowances from the Kunitachi city office and received two payments, the jido fuyo teate, which is provided by the central government, and the jido ikusei teate, which is provided by Tokyo Prefecture. Combined, these two allowances, which in principle go to the children of single parents, amounted to about ¥40,000 a month. The money was approved by Kunitachi, which administers both allowances. Read the rest of this entry »

Passive Houses: A conversation with Kevin Meyerson

October 31, 2014 by

While doing research for our November 2014 Home Truths column in the Japan Times, we talked to Kevin Meyerson, who has lived in Japan for 25 years and recently sold his web design business in Tokyo and moved to Karuizawa in Nagano Prefecture, where he built a passive house. Our conversation about his new home lasted more than an hour, and, obviously, only a small part could be used in the article. Here’s a bit more.

-How did you find out about passive houses?

We bought land in Karuizawa in 2010 and I was going to commute to Tokyo. I wanted to build an environmentally friendly house. My company had gotten ISO 14001 certifications several years before and I became more aware of energy efficiency and environmental issues concerning the use of energy, so I wanted to build an energy efficient house and looked at Japanese smart houses. There’s a new Japanese standard being considered for 2020 and I looked into those houses, and then I found out about LEED in the U.S., which is similar to CASBEE here in Japan, and I talked to the LEED architect for a while and found out through him about passive houses and that there was an architect who just brought the standard to Japan. She built the first one in Kamakura in 2009. There’s about ten now in Japan and a bunch more under construction. It’s going really fast, actually.

The LEED architect’s comment sort of blew me away with regard to passive houses. “I could probably build you a house that could be heated by a single candle, but why would you want to do that?” But my thinking was, if you can do that why wouldn’t you? So I contacted the architect who brought the passive house standard to Japan and she was quite busy but we were in a rush, and about nine months later her schedule became open and she decided to take on the project.

-Is LEED a company?

No, it’s a standard in the U.S. In Japan there’s a similar kind of system, though it’s not really a standard. It’s a checklist: Do you have solar panels on your house? Do you eat organic? There’s a whole bunch of stuff indirectly related to environmentally sound living. It’s been adopted by some architects who want to make environmentally friendly structures.

-Is it like LOHAS?

It’s a bit more formal than that. The passive house is a very simple standard in that it’s extremely focused on energy consumption on a per-square-meter-of-floor-space basis. If you have a square meter of floor space in your house you can only use 120 kilowatt-hours of energy per year. There are a couple of other standards besides overall energy consumption, but it’s focused on reducing the amount of energy you use per square meter while maintaining a comfortable living environment. The LEED standard, like CASBEE in Japan, is broader. It’s not just about energy consumption. It’s about a whole bunch of things. Some people think that’s a better way to do it, but if you build a house that’s LEED-certified it still can consume a lot of energy, so some people have been criticizing LEED and CASBEE as being a means of looking environmentally friendly without actually being environmentally friendly.

-When you first decided to build a passive house, did you have a model you looked at?

I looked up a bunch of stuff on the net and found that the passive house standard is quite common in Europe. And it’s becoming more common in the U.S. as well. And in all the cases the comments of people who lived in passive houses was that they never knew how comfortable a house could be, or now that they live in one they couldn’t live anywhere else. Read the rest of this entry »

You Got to Move (2)

July 5, 2014 by

CIMG3375The move was relatively straightforward and painless, and even cleaning up the apartment turned out to be less of a hassle that it’s been at other apartments when we left, mainly due to the fact that we were only there a little more than two-and-a-half years.

CIMG3349But the settling-in has taken time; not so much the arranging of furniture and figuring out storage options, but wondering about all the stuff we told A-1 we didn’t need because we were going to do all that ourselves. As mentioned previously, we had no real idea what the place would look like once it was finished, so we didn’t want to predecorate it and then later find out that it didn’t work; which is the way most people go about building a house. In the weeks leading up to the move we had bought shelves and racks and lights and curtain rods and curtains as we assessed the interior during its evolution into living space. We still needed blinds on all the windows, floor coverings, ceiling fans–not to mention extra counter space, since all we had was the kitchen island on the second floor. Though we aren’t huge fans of Ikea, we decided to do a run on the home furnishings monolith since it would just be easier to order what we needed all in one place and have it delivered all at one time. As usually happens when people go there, we left exhausted, frustrated, and a little abashed at the fact that we had let the place get to us. But we found most of the stuff we needed.

CIMG3275We ordered one set of drapes for the bedroom at Mujirushi, but their blinds were over-priced, we thought, and there wasn’t much of a selection in terms of colors. So we went to Nitori, a home furnishings store that’s a notch or two below Muji in terms of stylistic cachet. We were quite pleasantly surprised with the selection of blinds–about a hundred different colors–and they could custom make each set to the exact specifications of the windows, which were all different sizes. Nine sets came to a little more than ¥100,000. Later we ordered lace curtains for the smaller windows on the north side of the house, 7 in all, and it was less than ¥20,000. For the two square windows in the “living room” (more of a nook) we bought Japanese noren–the curtains that hang at the entrances to restaurants and public baths–and put them over the windows suspended from pipe we bought at our local DIY store. Read the rest of this entry »


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