Some of you regular readers will recall that the original purpose of
this blog was to document our adventures in the Japanese housing market.
I will admit to being much remiss on this front. So to make up for this
negligence here's the story so far..... After deciding that we did not
want to live full time in Japan, Shizuka's instinct was to sell the
house. I was more in favour of renting it out but the thought of a quick
profit is always enticing so I went along with it.
We had talked
to a local agent in Kameoka around the time we finished the renovation
project. He was a very quiet unassuming fellow and we sort of wrote him
off as being not so interested in marketing our house. Once back in NZ
Shizuka did some research and found an agent in Nantan. Our salesperson
took some good photo's and had some enquiries but none of them really
lead anywhere. She called when I was in Japan with news that she had a
customer who wanted to see the house. This was the day after the
Typhoon/tree falling incident and Shizuka told her not to bring him as
the place was a mess of broken trees, broken roof and broken car. She
decided to ignore that advice and proceeded with her viewing. The
results were entirely predictable with the customer taking one look and
running for the hills. As the months went on she seemed to lose interest
and once the sole agency agreement expired we decided to find someone
else.
Next up we contacted Century 21 in Kyoto and were assigned a super
enthusiastic sales guy. He quickly had some ads done and before long he
came to us with an offer from an interested buyer. The offer was
conditional on the buyer obtaining finance which we figured should not
be a problem. Done deal. Or so we thought... What happened next was yet
another lesson in how frustratingly senseless and inflexible the
bureaucracy in this country can be. Here is our understanding of what
ensued.
The potential buyer was a widow who lived locally in a
rented house. She had been given notice by her landlord and had to find
somewhere to live quickly. Her son was a policeman and had agreed to
help her buy a house by becoming a co borrower with her. They had seen
the add for our house, contacted the agent, arranged a viewing, then a
second viewing and had put the offer in. Next the agent had the contract
drawn up and everything was a go. The buyers then dropped the bombshell
that they had no money and would be seeking a 100% mortgage from a
bank. At that point both the agent and ourselves thought that this was
not necessarily a show stopper, after all, Y5,000,000 isn't exactly a
lot of money. The son has a good job, good credit history and has no
dependants so has some chance of pulling this off. A week went by. Then
news that they had been approved by the bank and that there were just a
few formalities to be observed around the usual paperwork that plagues
the average Joe in this land. The buyer had to supply his Koseki (Family
register certificate) to prove his relationship to his mother and his
Juminhyo (certificate of residence) to prove he actually does exist and
has a place of residence along with proof of income and the other
various things that one needs to obtain a mortgage. And this is the
point where we depart from reality, or at least my version of it. The
policeman's Juminhyo had his registered address as his police barracks.
Apparently some cops live in accommodation supplied by the police
department. This address was in Shiga Prefecture. Our house is in Kyoto
Prefecture...right next to Shiga. The bank refused to advance the money
unless he changed his registered address to the house he was about to
buy. The principle being that if you want to borrow money for a house
you have to live in it. The cop didn't think that was a problem... who's
going to know if he actually stays there and as long as he pays the
mortgage who really cares? Well it turns out that his employer cares.
When he approached his boss at the Shiga Police for permission to change
his residence to Kyoto he was told bluntly that in Japan, a cop (or a
junior one at any rate) must reside in the same prefecture that he is
employed by. And just like that, our deal was dead in the water. The
widow was gutted, the cop, bewildered and the agent irate that these
people had wasted so much of his time. The cop asked for some time to
try a finance company but the agent told us that the only kind of lender
that would finance him was exactly the kind that police were expressly
forbidden from having dealings with.
I could not believe that A) the
bank could be so inflexible, B) the agent had not qualified the
buyers...ie. asked them how they were going to pay for the house, BEFORE
he went through the whole process and C) the buyer's embarked on their
search and signed a contract without having first talked to their bank.
This
last one, I was about to find out is exactly what everybody here does.
Where I come from people look at adds for property, talk to some agents,
maybe go to some open homes but before anybody signs any contracts they
talk to their bank and find out whether they can actually follow
through.
Anyway.....Century 21 man soon has another potential buyer for
us. This guy tells us he wants to buy the house, puts in his offer which
we reject and then proceeds to negotiate hard. Back and forth we go for
a few days until we reach an agreement. He then informs us that before
he will proceed he wants to check that the street can get high speed
internet coverage and that it's in the right school zone for his kids.
As usual it's ass backwards from the Western norms I am used to. Why the
fuck would you not do all this before you start making offers? So I
wasn't really surprised when he pulled out of the deal because, yep,
it's too far from his kids' school of choice.
After that our sales
guy seemed to wane. . around that time he was the one involved in the
great agent - builder face off. He had been sending us weekly reports on
enquiries but these became fewer and farther between and suddenly
stopped. A call to his office yielded the helpful revelation that he had
left suddenly due to an unspecified illness....reading between the
lines we got the impression that the illness was of the mental variety.
His replacement left us in no doubt that he was not in the least bit
interested in inheriting our account.
We had taken out an add on a website where owners advertised their own properties. It is becoming more popular to do this in NZ but Japan is a bit behind in this trend. We got one hit from a man from Tokyo. He was retiring soon and was looking for a place in the countryside. He had looked at the photos and decided that it was exactly what he wanted and wanted to send us the money straight away. By now we have become pretty cynical about Japanese house buyers and told him that we would not enter any arrangements until he had got all his ducks in a row. We arranged for him to come and see the house while I was there but he postponed the day before and did not come to see the house until after I had flown back to NZ. It seems the day he arrived it was raining and that he was alarmed at the fact that one of the gutters was leaking onto the ground due to a twisted bracket. This he deemed to be a huge problem and consequentley he would not buy the house. We did not even bother to point out to him that a new bracket would cost about Y100 and take all of 5 minsutes to fit. Reason and logic has no place in the mind of the typical Japanesehome buyer.
So, while in Kameoka in
summer 2012 I went to see the Agent we had talked to first. His quiet,
understated way had put us off before but I figured that it was worth a
try. The bigger agencies had shown us that they weren't interested in the
more challenging cheaper properties so I thought that a small local
agency might be a better bet. He suggested that renting the house might
be a better outcome for us and I quickly came to the same conclusion.
He explained to me that Japanese people just don't have the experience that westerners have with property. Most of them will only ever buy one house in their lives...usually a new one from a development company. They just don't know how to go about the process hence the time consuming, ridiculous, back to front way most of them approach it. That made some sense to me. I told him to go ahead and try to find someone to rent the house. Within 2 months I was back in Japan preparing the house for the tenant
he had signed up for a 2 year lease.
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