I want to buy land and build a house that I like. Have you ever thought about that? Buying a detached house is one option, but if you can build a house with the desired floor plan and specifications, why not get excited?
I want to build a custom-built house, but I don't know what to do when and what to do. Today, we will clear up such questions and explain the general process for moving in and the setup. If you are considering this, please use it as a guide.

STEP1 "Create an Image of Living"
Let's start by envisioning the lifestyle of the family, "where and what kind of life do you want to live in?" The image of the building and "whether the base of life should be in the city center or the suburbs where a large land can be desired, giving priority to raising children". Let's create an image referring to the following method.

Think from the conditions that are assumed in advance
- Non-negotiable conditions (such as housing performance) and price
- Image of building (design house, imported house, etc.)
- Area you want to live in

Focus on surrounding environment and location conditions
​- Time to the nearest station
- Commuting to school time
- Education facility time and reputation
- Level of medical welfare
- Sufficiency of commercial facilities such as supermarkets
- Market price in that area (comparison with a detached house, price of land, etc.)
- ​Convenience such as transportation

STEP2 "Let's make a Financial Plan"
And the important thing is financial planning. First of all, firmly grasp the current amount of savings, consider how much self-fund can be prepared, and how much money can be repaid each month without difficulty, and make a comprehensive budget such as "land cost + building cost". You can also check the land price in the area you want to live in advance to find out how much you will spend on the land and how much you will spend on the building.
It is important to note here that in addition to the construction cost for the building fee, incidental construction costs for electricity, gas, exterior construction, etc., survey costs, application fees to inspection institutions, moving fees to new houses, various expenses other than construction, such as new furniture costs. Approximately 70 to 80% of the total budget for the building fee is the actual construction cost.
In addition, such expenses are usually paid before delivery, so it is necessary to prepare money in advance. If you use a loan, be careful about that point.

STEP3 "Let's find a Concrete Land"
Once the image of the area or building you want to live in and the approximate budget have been decided, you will begin to search for a specific land. It is common to consult with a real estate company in the area where you want to live and let them know what you have in mind about your budget, size, and specific area, and ask them to find it. However, since there is no land with the same conditions, it is actually difficult to get around to a land that is close to ideal. Even if the condition of the land is a little bad, it is necessary to broaden the range of options such as "land with an old house" and search for a land that is close to your wishes. Here are some points and precautions that you should be aware of when actually looking for land.

Points and notes for land search
- Set a deadline and look for it (otherwise it may never be set)
- Prioritize desired conditions and make compromises according to priority except for conditions that cannot be negotiated
- Make sure the imaged house is built on the land
- As for "with an old house" where an old building is built, it may be necessary to dismantle the building separately or it may not be possible to reconstruct it, so please check in advance.
- Please note that land with "Construction Condition" basically requires a construction contract with a building company designated by the land seller within a certain period of time.

Tomorrow, we will explain about "STEP 4 How to find a Construction Company".

If you trade real estate through a real estate agent, you must pay the prescribed brokerage fee (intermediary fee) to the real estate agent. The maximum amount of brokerage fees is set by the Ministry of Land, Infrastructure and Transport Notification. 
When requesting a real estate agent to sell or purchase real estate, we conclude an intermediary contract with the real estate agent. The intermediary contract defines the period and conditions of the request, the amount of intermediary fee, etc. Brokerage fees are often paid half the amount when a sales contract is concluded and half the amount when the balance is paid.

Real estate ​brokerage fee rate

*¹ ​Amount not including consumption tax

<Calculation example>
Brokerage fee when condominium sale is completed for 30 million yen

(1) Principle calculation method *When calculating the brokerage fee, use a separate calculation.
2 million yen x 5.5% = 110,000 yen ････a
(4 million yen to 2 million yen) x 4.4% = 88,000 yen ････b
(30 million yen-4 million yen) x 3.3% = 858,000 yen...c
Total a+b+c = 1,056,000 yen

② Quick calculation method
30 million yen x 3.3% + 66,000 yen = 1,056,000 yen
Therefore, the maximum amount of brokerage fee (including consumption tax, etc.) will be 1056,000 yen when a real estate agent requests brokerage and the sale is completed for 30 million yen.

If you have any questions, please feel free to contact us.

We explained that the rent income from real estate involves four risks: vacancy, early cancellation, rent decline, and delinquency. This time, we will explain what kind of risks are involved in terms of the lessee's attributes, type, and market.

The tenant attributes of real estate for rent can be broadly classified into three categories: “residential”, “office”, and “store”. In real estate investment, the magnitude of risk varies depending on the lessee's attributes. We will explain the risks associated with attributes from the perspective of stable income.

The above is a general comparison that does not take individual circumstances into consideration. Stores and offices are subject to the risks of withdrawal and relocation, depending on location conditions and economic conditions. In addition, if there are vacancies, we must search for a store or company that meets the conditions, taking into consideration the location and other factors. Therefore, it can generally take some time to secure a new tenant. Naturally, residences are affected by location and economy, and there is a risk of vacancy, but since it is essential as a home of life, new lessee can be found unless rent conditions such as rent are set unreasonably. The cycle of finding new tenant is generally shorter than in offices and stores. From this point of view, by the stability of rent income, it can be said that the risk of residential is lower than stores and offices.

As mentioned above, the risk of income differs depending on the lessee's attributes, but in addition, the risk level also changes depending on the “business type”, “scale” and “quality” of the lessee in each attribute.

Again, this is just a general idea, and of course it depends on the individual case. As for offices, it is important to consider how the company is generating stable income and the occupation where stable income can be obtained. In terms of stores, restaurants are generally said to be at higher risk from the perspective of fire risk. In this way, the risk varies depending on the attributes and quality of the lessee. In other words, cultivate a sense of risk by imagining the possibility of obtaining stable income and the different probabilities.

If the rent obtained from the investment target real estate is higher than the market price in the neighborhood, there is a high possibility that the rent will have to be reduced at the same level as the market price at the timing of contract renewal or replacement of the borrower. Therefore, even if the yield at the time of property purchase is high, the rent may be reduced in the future due to replacement of the lessee or negotiations for rent reduction, etc., and as a result, the yield may decrease.

The degree of risk also changes depending on the number of real estate units you invest. If the number of rented units is large, the ratio of one rent to the total rent is small, so even if one vacant unit is vacant, the impact on rent income will be small. Conversely, if the number of rented units is small, the ratio of one rent to the total rent will be large, so if vacant, the impact on rent income will be large. In other words, the impact of vacancy per unit increases as the number of rental units decreases, and the impact decreases as the number of units increases. As shown in the table below, even if the investment amount and the yield are both the same, the income and yield when there are vacant rooms will differ due to the difference in the number of rental units.

We explained the risk related to income in two times, the last time and this time, but it does not mean that the risk is bad because it is high or low. If the risk is high, you can buy cheaply and get a high yield accordingly. In addition, if the risk is low, the yield will inevitably be low, so you may not be able to expect high profits, but stable operation may be possible. First of all, it is important to understand the risks and develop a sense and image that you can make an investment commensurate with the risks.

When investing in real estate, it is important to understand the intuition of the land, the unique circumstances of the real estate, demand, and major trends. However, starting with a small investment and gradually increasing it, you will be able to accumulate know-how and select the appropriate property from various investment targets. We also accept questions related to investment, so please feel free to contact us.

Real estate investment is often very large compared to stock investment. If you succeed, you will get a stable profit, but if you fail, you will regularly lose. Therefore, if you do not fully understand the characteristics and risks of real estate, you cannot make a successful investment. So what are the specific risks involved in real estate investment? This time we will discuss the risks associated with income from real estate.

The main source of income from real estate investment is the monthly rent income earned by lessee (residents, tenants) by renting real estate. Therefore, if lessee moves out for some reason, owner will not be able to earn rent income until owner finds a new lessee. Moreover, as a property of real estate, management costs, property taxes, city planning taxes, and other expenses are incurred regardless of whether there is a lessee or not. Therefore, if rent income does not come in due to vacancy, the balance will be not zero, but negative. For example, if six months of the year are vacant and you cannot get rent, the rent income will of course be halved, but expenses will be incurred throughout the year, so the actual income and yield will be less than half.

When entering into a lease agreement between the lessor and the lessee, the contract period is usually set for 2 to 3 years. However, even during the term of the contract, it is possible to cancel the contract in advance, excluding special contract types, by prior notice from the lessee (6 months to 1 month). In other words, for the lessor, the contract period specified in the lease contract is only expected to earn rent income, and even during the contract period, there is always the risk of being canceled early (vacant).

When land prices, commodity prices, and rents were rising, it was called the “lender market” and it was relatively easy to secure a new tenants even when there were vacancies. Also, at that time, land prices and rents were on the rise, so in some cases owners were able to rent under conditions that were more favorable than previous rents. In addition, key money and other lump-sum payments can also be received, so the early cancellation by the lessee was not a major issue. However, with the increase in the supply of rental properties, the number of vacancies has increased, and the polarization of land prices and rents is now remarkable, and it is called the “borrower market”, it's becoming a serious problem for the lessor whether or not a new lessee can be secured promptly after the tenant moves out, and whether the lessee can pay at the previous rent level. In the current “borrower market”, stable income cannot be obtained unless the next step is taken promptly when it becomes clear that the lessee has terminated early or has terminated.

If the rent obtained from the real estate to be invested is higher than the market price in the neighborhood, there is a high possibility that you will be forced to reduce the rent at the same level as the neighboring market at the time of contract renewal or when the lessee is replaced. Therefore, even if the yield at the time of purchasing a property is high, the rent may be reduced in the future due to the replacement of the lessee, negotiations for reducing the rent, etc., and as a result, the yield may decrease.

Even if the lessee has already been secured and there is no concern about vacancy for a while, but there is a risk of the rent will not be paid as planned due to the economical situation of the borrower and individual circumstances, etc. If the rent is overdue, a reminder to the lessee and a reminder to the guarantor will be required. In addition, if you request a real estate agent or lawyer to do business for moving out due to demand for rent, collection, or nonpayment of rent, there will be a charge. Thus, in addition to the effort and expense involved in paying rent in arrears, you may suffer even more damage than if the property were vacant, since you will not be able to secure a new tenant and generate income in the meantime. Even if the eviction is established, it is not known whether the rent for non-payment can be recovered or not.
Therefore, if you are investing in real estate, you will need to conduct a thorough investigation into the creditworthiness of guarantor as well as the creditworthiness of the lessee. It is desirable to investigate the lessee's past arrears history when buying the real estate that is already in lease.

Investing involves risk, and there is no investment product without risk. In real estate investment, a thorough understanding of the characteristics of these risks will determine the success or failure of your investment. In addition, the various risks associated with rental income discussed in this article can be mitigated to some extent through your own efforts, ingenuity and judgment. We will discuss ways to mitigate these risks in the next section.

Mortgages aren't the only things you pay monthly after you buy an apartment. After purchase, you will also have to pay a management fee and a reserve for repairs. Moreover, the reserve fund for repairs may be raised, so once it is decided, it will not end. Therefore, in this article, we will explain what the repair fund is used for, and then introduce the market price of the repair fund and the reason why the price increases.

In the case of a condominium, you have to pay a management fee and a reserve fund for repair in addition to the mortgage each month after purchase. Briefly, the management fee is a monthly fee paid by the resident to the management company for the daily management of common areas. The reserve fund for repairs is for the tenants to save the expenses through the management association in preparation for the maintenance and repair of the condominiums 10 to 20 years in advance. Please refer to the table below for each main use.

To explain in more detail about reserve fund for repair, in order to carry out the necessary repairs (maintenance of outer walls, repairs of common areas, etc.) to maintain the condominium over a long period of time, it is different from the management cost. In accounting, the thing to be saved is called reserve fund for repair.

Actually, how much is the market price to pay for the monthly reserve fund for repair?
According to the 2013 version of the “Condominium Comprehensive Survey” that the Ministry of Land, Infrastructure, Transport and Tourism regularly surveys, the average management cost in 2013 was 10,661 yen per month, and the average amount of reserves for repairs was monthly 17,83 yen. ​In other words, in addition to the loan repayment amount, you can see that there is an average monthly burden of ¥21,444. By the way, looking at the market price of reserve funds for the 1999 version (1999), the average amount of reserve funds for repairs in 1999 was 7,378 yen. In other words, you can see that the price has risen by more than 30% in the last 15 years.

The reason for the price increase
So why has the price so much increased in 15 years? When repairing condominiums, it is important to perform appropriate repair work in a timely manner in response to deterioration over time of the building. To that end, it is essential to accurately create the aforementioned long-term repair plan and set the amount of reserve for repairs based on it. However, in the past, there was no guideline on how to formulate a long-term repair plan. Therefore, the Ministry of Land, Infrastructure, Transport and Tourism formulated it in 2008. Therefore, the long-term repair plan was reviewed accordingly, and the reserve for repairs was calculated again. In other words, the proper amount of money is being collected.

The amount of the reserve fund for repairs is the same every month every year, but that is not the case. It may be worth noting that in some cases it may increase over time. It seems that the longer the building age is, the more likely it is that the reserve fund will increase. When carrying out large-scale repairs, the reserve for repairs is often reviewed as a result of estimating repairs. Large-scale repairs are generally done every 10 to 15 years.
The Ministry of Land, Infrastructure, Transport and Tourism's "Manual on Reconstruction Techniques for Condominiums by Renovation" shows an example of every 12 years, but even in that case, the reserve fund for repairs will be reviewed during large-scale repairs. It may be helpful to refer to it when purchasing.

Let's take a closer look at why reserve fund for repair might go up.

The initial set amount is low
The first reason is that the initial amount of reserves for repairs at the time of sale is low. Especially in the case of second-hand condominiums before the creation of the guidelines, it is highly possible that the initial set price is set lower than the appropriate amount, and as a result, the price will rise in the future.

Step-up accumulation method with fixed price increase
The second is when raising the reserve fund for repair price is a fixed collection method. There are two reserve fund reserve methods: the "equal fund reserve method" and the "staged increase fund reserve method." The equal fund method is a method of dividing required repair money by the planning period and paying the same amount every month. Therefore, the reserve fund for repairs will not change during the period. However, many condominiums use the latter method of gradually increasing reserves, and the reserve fund gradually increases in price. It is important to check carefully as you will be informed of the payment at the time of purchase.

Market prices for repairs are rising
The third is when the market for repair costs rises and the reserve fund for repairs rises accordingly. There is a concern that the workforce will decrease due to the aging of the population, and there will be a shortage of labor for construction workers, and such a shortage of labor will lead to soaring labor costs, resulting in higher repair costs.

Implementation of large-scale repairs not originally planned
Fourth, there are large-scale repairs that are not planned. When the building age has passed, the equipment, etc. will become old, so it is necessary to carry out large-scale repairs. Barrier-free construction and upgrade construction are not included in the long-term repair plan, and there is no reserve fund, so owners have no choice but to raise the price.
Fifth, the cost is high because owners left everything to the management company. As a result of these factors, the fund for funded reserves continues to rise.

Timing of price increase
Now that we know the reason for the price increase, we would like to touch on the timing of price increases. The timing of price increase basically depends on which method is used to accumulate. It seems that the timing for raising the price with the equal fund reserve method is often after the completion of large-scale repairs. It can be predicted that the cost was higher than the estimate at the time of planning. In case of staged increase fund reserve method, the timing of price increase comes every few years. It is necessary for owners to be informed of this when you purchase the condominium and schedule it yourself.

When purchasing a condominium, understanding the significance of the reserve fund for repairs and why the price will rise will change the criteria for choosing a condominium. Check whether the amount of the reserve for repairs will increase significantly or moderately, check the age of the building, and prepare in advance.
Please contact us for consultation on purchasing or selling real estate.

Usually used in the real estate industry, it is used as a matter of course or it is a business practice, and we will explain in a Q & A format such as words and ideas that are not familiar to the general public.

Q - What is the standard for walking time from stations?​

A - ​​Every 80 meters of road distance is converted to approximately 1 minute, and fractions less than 1 minute are rounded up to 1 minute and displayed.

Q - ​How should the unit of width be viewed?

A - ​​1 tsubo = 2 tatami mats (Jo) ≒ 3.3 square meters.
It's a good idea to keep this in mind because you often make calculations such as square meters × 0.3025 = ○ tsubo.

Q - ​What is the meaning of the symbols displayed on the floor plan?

A - ​​The meanings of the typical symbols displayed in the floor plan are as follows.
  L → Living
  D → Dining
  K → Kitchen
  S → Service room
  PS → Pipe space (drain and drinking pipes)
  UB → Unit Bus (Japanese English, meaning of modular bath)
  MB → Meter box (gas, water or electricity meters are installed)

Q - ​The floor plan often says "S" Service room. What kind of room is it?

A - ​​Service room as "Nando" means a room with 3 tatami mats or less, or a room without windows. This is in accordance with the Building Standards Acts, which does not recognize a windowless room as a living room. There are some rooms that are treated as service rooms because there are no windows even if they are more than 8 tatami mats.

Q - ​​It is often called the unit price per tsubo, but how do you put it out?

A - ​The result of dividing the sales price by the number of Tsubo (area) of the property.
If the trading price is 25 million yen and the area is 50 square meters, it will be as follows.
​
25,000,000 yen ÷ 50 square meters = 500,000 yen (per square meter)
500,000 yen x 3.3 square meters = 1,650,000 yen (per tsubo) ⇒ unit price per tsubo

Q - ​​I want to buy only the land and build the building in the future, but can't it be the land with construction conditions?

A - ​When a homebuilder sells land, it is called land with construction conditions. This is a land sales form, subject to a contract for building construction within a certain period (3 months). The contract type is a sales contract for land and a construction contract for buildings. If the building contract is not concluded within 3 months after the land purchase contract, the land purchase contract will be blank and all the money paid will be refunded. Therefore, in the case of land with construction conditions, it is not possible to purchase only the land. However, please be aware that some advertisements may look like advertisements for newly built homes, such as posting a large example of a building plan (floor plan).

Q - ​​Is there a consumption tax on the purchase of real estate?

A - ​When buying a used home, it can be divided into a case where the seller is a corporation and a case where the seller is a general individual. If the seller is a corporation, the house will be a commodity and will be subject to consumption tax. However, in most cases, the tax is included, so the tax will be included. If the seller is a general individual, it will not be taxed as it is not a product referred to in the consumption tax law.
In addition, the purchase and sale of land is not a target of consumption in the first place, and the transfer is considered to be a simple transfer of capital. Whether the seller is a corporation or an individual, the tax is exempt under the consumption tax law.

There are many reasons why real estate sales prices may fall, but the biggest reason is when supply and demand are out of balance. Regardless of real estate, if the demand is high, the price goes up, and if not, the price goes down. However, real estate is one-of-a-kind item, and if the real estate has a scarcity value, the price will equilibrate, or the pace of price decline will slow.

So from the standpoint of the seller, we would like to explain why the real estate is sold and why the price is lowered. Except for special cases such as auctions, the reason for selling real estate is because it is no longer used, sell it because it is not essential and can be sold high in the market, sell it because cash is absolutely necessary, sell real estate to relocate assets, or sell the real estate that was purchased to sell at a high price from the beginning. Let's look at each case.

Sell real estate because the seller doesn't use it
If the seller already owns his or her own residential property, but the property is acquired through inheritance, what will happen to the property? In the case of real estate inherited from their parents, they may have lived in their childhood. In that case, the building is probably over 50 years old. If demand for leasing is expected, it can be renovated and held as rent. However, if the refurbishment costs a lot of money, it will inevitably proceed to sale.

The owner does not necessarily have to own the real estate and sells because it seems that it can sell high in the market
If the owner finds that the property he/she is not planning to sell can actually be sold at a high price, if there is no compelling reason to own it, then owner sells the property.

Owner sells real estate for cash
It's similar to an auction of real estate, but if the owner can't afford to repay the loan or needs a lot of cash, owner sells own real estate and cashes it out.

Sell real estate to relocate assets
When an investor owns real estate for profit, it may replace the real estate after the end of its useful life. In this case, the real estate may be sold at a time when the yield decreases or the buyer's loan is easy to obtain.

Sell the real estate owner bought to sell at a high price from the beginning
This is a case where a real estate agent mainly sells as a business. For example, real estate purchased at a low price may be sold at a high price by resale, or real estate may be sold with added value such as renovation.​

Then, which of the above is the case where owner have to sell the real estate even if they lower the price?
​
The seller who bought the real estate for resale originally wants to sell it first. There is no purpose in owning real estate, and the difference between the amount sold, the amount purchased and the amount renovated is a profit, and they operate the business by increasing the turnover ratio of purchase and resale. Therefore, it is easy to operate the business in the environment where the price is rising, but in a recession, the profit margin decreases and the turnover rate decreases, which makes it difficult to operate the business. Since there are many cases where real estate is purchased using loans, considering the interest rate burden, it is a good idea to let go at the price and timing when they can sell.

Secondly, the seller who really needed cash, hurries to sell it, but there is always a price floor. Since the purpose of the sale is to cash the real estate and use it for payment, the price of cash in hand after paying the necessary expenses is the most important. In this case, the real estate is sold to the real estate agent. The price will be cheaper if agent buy it directly from the owner, but owner can get cash on the same day. Real estate agents do not care about things that general buyers are concerned about, such as defects in real estate. Therefore, here is the reason why real estate that does not appear in the table can buy at low cost by real estate agent.

Next is a seller who will never use the real estate owned by inheritance. In this case, the real estate that is three or five years old from the inheritance is put up for sale in the market. Some real estate agents subscribe to a list of owners of real estate whose inheritance has changed, and they will send a letter to the new owner of the listing to appraise the sale. By sending a letter to the owner who is considering how to use the real estate, new owners feel like trying to sell at the assessed amount once. In this way, inherited real estate is often sold on the market.

Sellers wishing to relocate their assets will consider lowering the price or suspending the sale. If the investor owns multiple real estate, owner will try to improve the financial condition by relocating to a more profitable real estate. They don't necessarily have to sell it, but in future plans, they will sell it at a convenient time.

And the seller who originally did not need to sell, but tried to sell at a high price, would either hold the sale itself or keep the price and sell when a good buyer appears. In this case, the purpose is to sell the real estate at the desired price, so there is no need or reason to reduce the price.

The price of real estate is formed by a mixture of the purpose of selling such real estate and the reason for lowering the price. ​On our real estate sales site, we will update the property whose price has dropped by dividing it into a new category. If you are interested in the trend of price cut real estate, please check here.

In some cases, the price of real estate will drop due to the impact of COVID-19, but in many cases the price will not change at all depending on the purpose and reason of the sale. The price reduction of real estate starts from the seller who wants to sell the real estate in a hurry, but the price depends on the seller's financing strength. If you have any questions or if you are considering selling real estate, please contact us.

Today, we will explain the newly started 360° Tour of real estate sales and rental properties. Please check here first.

Renovated Machiya building in 1902, for Sale near Nijo Castle​
https://realestate-kyoto.com/?post_type=fudo&p=1126

We took a picture for the first time today. As we introduced the other day, we bought a 360° camera, so we have tried taking photographs of the sale property and the rental property. If you are considering using a 360° camera for your own service, please refer to it. 
As a practical matter, we took a picture first. The shooting is divided into two types, a photo shooting for a 360° Tour and a spot photo in the Tour. For 360° cameras, setting the lens height slightly below the line of sight made it feel more like walking in the room. Also, the 360° camera works in conjunction with Mobile and presses the shutter button. Therefore, we installed a camera at each position and took care so that luggage and the photographer would not be reflected in the lens. Also, the brightness can be adjusted, so we took a trial shot first, decided which brightness to use, and then took a picture at each location. The photos of the spots were taken on mobile, so if you bring a mobile and a 360° camera, you can take a tour photo like this one.

This time, we are creating a Tour using Ricoh's service. We started from a free account, confirmed the contents, and changed to a paid service. Creating a Tour is easy. Create a Tour for each property and upload the photos we have taken. All we have to do was to register the floor plan as well and placed each photo at the shooting location on the floor plan. Also, spot photos will be registered in 360° photos. Here too, we only had to register the photo at the spot position. After that, we created a tour as if you were inside the room by simply connecting the points at each shooting location.

Studio Apartment for Rent, near Demachiyanagi sta., in Sakyo Ward
https://realestate-kyoto.com/?post_type=fudo&p=5869

Since this is the first time to create a Tour, we will continue to improve it each time to improve it. Please contact us if you are interested in how to register or set up, or the property. From tomorrow, we will continue to shoot other properties as needed.

In recent years, the issue of unoccupied houses has attracted attention in Japan. As a background to this, there may be many people hesitant to dismantle the house that "I do not know the cost of clearing the land" and "I am anxious about how much can be sold even if I vacate the land" even if they try to sell the house that they no longer live in on the vacant lot. When considering the purchase of real estate, the type of real estate may be land with an old house as the type of advertisement. This means that the value of the building is 0 yen and the price of the land will be sold with the existing building.

How much vacant lot can be sold depends greatly on the economic situation and location conditions, but it is possible to understand the rough amount of "dismantling cost" for vacant lot. Also, knowing the cost of dismantling an old house that will occur in the future is very useful for those who are thinking of selling land with an old house instead of vacant house, or those who are considering the construction of a new building by purchasing the land. Therefore, this time, we will explain about the dismantling procedures and costs of a detached house, how to judge the dismantling, etc.

What should owner do when you want to dismantle a detached house?
Who and what do you consult?
Who should you consult if you want to demolish a detached house? The actual dismantling is done by a professional dismantling company. Rather than inquiring directly to the dismantling company, the safest and smoothest way is to consult with the construction company (architecting company) and the architect (designing company) who took care when designing the house or building the house, consult with the real estate company you are requesting buy or sell the properties (a real estate broker).

How to request?
First of all, it is most important to discuss how to use the land after demolition of the building. If you are trying to build a new house after dismantling, but the land could not be built, the minimum area was not enough, and there are cases where you cannot return later. Therefore, after consulting with the above companies, it is better to have them conduct a field survey locally, present an approximate amount, and obtain a formal estimate before making a decision.

Should the Seller or the Buyer bear the Dismantling Costs?
If the market value of the old house is completely absent and the market value of the vacant lot is judged to be higher, it may be advantageous for the seller to pay the demolition cost. However, in reality, the seller cannot afford this demolition cost, so it's one of the reason why they often sell land with an old house. It is good if the buyer renovates, but if you want to build a new one, the buyer will dismantle after purchasing. In this case, the buyer will bear the dismantling costs. ​In real estate transactions, there is no uniform rule that which party has to bear the cost of dismantling, so it can be said that the mutual interests are determined at the point of agreement.

How to decide the Dismantling Cost?
◇ Case: How much does it cost to dismantle a 30-tsubo (about 100 m2) detached house?
For example, the market rates for dismantling costs for a detached house with 30 tsubo are as follows.

[In case of Wooden structure]
Unit price per Tsubo: 40,000 to 50,000 yen times 30 tsubo = total amount of 1.2M yen to 1.5M yen

[In case of Lightweight Steel structure]
Unit price per Tsubo: 60,000 to 80,000 yen times 30 tsubo = 1.8M yen to 2.4M yen

◇The dismantling cost depends on the location conditions and time
The actual cost of demolition varies depending on the structure and size of the building and for a variety of reasons. First, there are location requirements. It would be nice if they could use a large-scale machine for dismantling work, but if the road is narrow, they cannot put in the vehicle, so they have to manually dismantle and carry the waste materials. Therefore, the labor cost will be high. Also, in densely populated areas, costs such as curing will be high and dismantling costs will increase.
Second, dismantling time also has a bearing on costs. For example, there may be a construction rush in front of a large-scale event, and at such times, the company doing the dismantling work is also busy and the unit price tends to rise.
Third, if the building to be demolished contains asbestos, or if there are many unnecessary household items, disposal costs will be higher, resulting in higher demolition costs.

What are the criteria for Dismantling/Not Dismantling?
When selling land with an old house, if the price of vacant lot can ask higher on the market, it can be said that it should be dismantled from an economic point of view. Unfortunately, a wooden detached house loses its value after more than 30 years. After more than 40 years, the deterioration of the roof and outer walls will become remarkable, and if it is left untouched, it will become a very old building in 50 years. However, although it is extremely rare, it is difficult to find much economic value but there are houses with high rarity and cultural value, such as “a detached house, which is an early work by an architect who has become a famous now”, and “house decorations such as transom are made with traditional techniques and materials", which are difficult  for repeatability. Kyo-machiya house is also similar, and it may be more valuable to renovate than dismantle, such as different construction methods from now, non-rebuildable buildings in the back alleys, styled buildings popular with overseas travelers, future rarity value will improve. Today, renovation makes it possible to create a building that retains the value of an old building while incorporating the convenience of modern times. If you own a high scarcity value building, please consult once.
It is better to dismantle the old house as it is, but if the building disappears, there will be no tax reduction measures and the tax burden will increase. When dismantling a detached house, it is important to examine the costs involved and make a firm decision on "how to use the land after the house dismantled." It is possible to introduce affiliated architects and contractors, so please contact us.

What are the new earthquake resistance standards after 1981? Explain the difference from the old earthquake resistance standards
Have you heard of the word (new Earthquake Resistance Standards have been adopted since 1981) as property information, or have you seen that it says new Earthquake Resistance Standards or old Earthquake Resistance Standards? Earthquake Resistance Standards is divided into new Earthquake Resistance Standards and old Earthquake Resistance Standards since 1981. How are these new and old Earthquake Resistance Standards different? Therefore, this time, we will explain the new Earthquake Resistance Standards since 1981, and the differences between the new Earthquake Resistance Standards and the old Earthquake Resistance Standards. If you would like to know more about Earthquake Resistance Standards, please refer to it.

Earthquake Resistance Standards are the criteria for the durable structure of a building against earthquakes during the design stage of the building. The Earthquake Resistance Standards have been revised and the Earthquake Resistance Standards applied after June 1, 1981 are now became to called “new Earthquake Resistance Standards” and the standards applied before that are called “old Earthquake Resistance Standards”. 

In 1950, it is a standard set by the Building Standards Act for the purpose of protecting human life and property, and also sets standards for building sites, structures, and equipment. There is a rule that all buildings in Japan today must comply with this standard. The Earthquake Resistance Standards have been reviewed in response to the great earthquakes that occurred in the past. Due to the damage caused by such a great earthquake, the old Earthquake Resistance Standards were reviewed and the new Earthquake Resistance Standards were newly established.
Which buildings are built under the new Earthquake Resistance Standards?
Buildings that meet the new earthquake resistance standards are those that have been approved after the implementation of the new Earthquake Resistance Standards, to the best of our knowledge, it is said that the new Earthquake Resistance Standards have been applied to buildings completed after September to October 1981. However, there are cases where even the building built in 1982 was built with old Earthquake Resistance Standards. In the case of condominiums, the construction period is about one to one and a half years. Even if the building confirmation of the condominium was received in June 1981, it is considered that the new Earthquake Resistance Standards are applied to the building completed in the summer-autumn 1982 at the earliest.

What if you want to know whether the Earthquake Resistance Standards of a building is Old or New?
To find out whether the house you are currently living in or the building you are considering to buy is built with old Earthquake Resistance Standards or new Earthquake Resistance Standards, please check the date on which the building confirmation application for that building was accepted. If the date of issue of the building confirmation notice is June 1, 1981 or later, it is a new Earthquake Resistance Standards building, and if it is before May 31, it is an old Earthquake Resistance Standards building. If the property has a building confirmation, there is a building confirmation notice available. In the unlikely event that owner have lost the building confirmation notice, you will need to request the issuance of a certificate of the items listed on the confirmation ledger at the window of the local government or government office. Please note that if the property is too old, it may not be stored.

Difference between Old and New: Earthquake Resistance Standards changed to Seismic Intensity of 6
The big difference between new Earthquake Resistance Standards and old Earthquake Resistance Standards is the magnitude of seismic resistance standards. The old Earthquake Resistance Standards stipulates that "buildings will hardly be damaged by an earthquake with a seismic intensity of 5 or higher," and a standard was set to withstand medium earthquakes. However, the damage from the 1978 Miyagiken-Oki Earthquake was greater than expected,  the earthquake resistance was reviewed as it is expected that the old Earthquake Resistance Standards will cause significant damage even if a large-scale earthquake does not occur. Focusing not only on preventing buildings from collapsing due to an earthquake but also on ensuring the safety of people inside the buildings, the new Earthquake Resistance Standards set up based on the standard of "withstanding an earthquake with a seismic intensity of 6 or more" and take measures against large earthquakes. 

In addition, it is possible to reinforce the building of old Earthquake Resistance Standards to the same extent as new Earthquake Resistance Standards by renovation. However, since the structural design is different from the beginning, the idea is to strengthen it, and it is not always the same as the new Earthquake Resistance Standards. In the budget, please make a detailed discussion in the meeting about which part will be used to reinforce the building, which part will be replaced with new equipment and make it clean and beautiful property.