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8/5/2020

Buy Land and Build a Custom Home-3

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Would you like to build your own house? Buy Land and Build a Custom Home.

Today, the third day, starts with the explanation of ​STEP 7: Building Planning and Design, which continued from yesterday.

From Purchasing Land to Planning a House (approximate period: about 3 to 10 months)

STEP 7: "Building Planning and Design"
Here, concretely decide the image of the house you want to build. First of all, it is important for the family to discuss what kind of life they want to live in. For example, write down your wishes, such as "I want to put in a lot of sunlight," "There is a stairwell," "Warm in winter, cool in summer," "The kitchen is large," "The child room will be divided into two rooms in the future" . Then, prioritize each of them and consult with the construction company to have them design and plan the building. Also, when deciding on an image or considering a plan, clarifying the following points will facilitate planning with a construction company.
​
Points when considering a floor plan
- Family structure and age structure
- Living and dining area
- Do you need a Japanese-style room, guest room, study room, etc.
- How do you use the children's room? (Bedroom? Study? Both?)
- Besides, request for floor plan of house
- How many cars and bicycles will you park on the premises?
- ​What about the outdoor areas such as the garden and balcony?
Points when considering facilities and buildings
- Would you like to make a house that uses a lot of natural materials such as solid wood and diatomaceous earth?
- Equipment grade such as bath, kitchen and washbasin
- What kind of furniture do you want to have? Is it ready-made or made-to-order such as fabrication?
- What are the specifications and shape of the outer wall?
- Structure (Is there anything particular about seismic isolation and seismic control?)
- ​Heat insulation performance (outer heat insulation, etc.)
Picture
STEP8 "Construction Contract"
When the building plan is finalized, it is finally time for the contract agreement. At the time of contracting, four documents will be handed to you: "Construction Contract Document", "Construction Contract Conclusion Form", "Quotation" and "Design document". All of these are voluminous and it is almost impossible to check them all on the contract day. We recommend that you obtain a copy in advance and contact us in advance if you have any questions or questions.
STEP9 "Construction Confirmation Application"​
It is finally the start of construction, but before that, a building plan confirmation review will be conducted. As for the building plan you thought of, whether it complies with the Building Standards Act, etc., the building owner (usually a contracting construction company) applies for a building confirmation to the designated confirmation inspection agency of the government or the private sector, will undergo a confirmation examination.
You cannot start construction work unless you receive a building confirmation certificate.
It also serves to prevent the construction of buildings that are not in compliance with the law.
Tomorrow, we will explain about mortgage contracts, construction, and building delivery.

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7/1/2020

How much is the Cost of Dismantling a Detached House?

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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.
Picture
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.

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6/7/2020

Information on the Land Registration Certificate

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Today, we would like to change from yesterday and explain what kind of information can be obtained from the registration certificate. First, the following is an example of a registration certificate of the land registry.
We will explain the important contents according to the numbers.
① Location: Location of the land; xxx Town, xxx ward, Kyoto City
②-① Lot number:  #xxx
②-② the Classification of Land Category: Type of Land (residential land)
②-③ Acreage: Land Size
③ Right Department (Section A) (matters related to ownership): Order of registration, purpose of registration, date of receipt, right holder and other matters. (Reason for registration, owner's address, owner's name)
*If there is an underline, the content has been changed and the registration has been deleted.
④ Right Department (Section B) (Matters related to rights other than ownership): creation of mortgage and revolving mortgage, etc.
⑤The order of registration, purpose of registration, date of receipt of registration, right holder and other matters  (reason for registration, amount of claim, interest, debtor, etc., Mortgagee's address, mortgagee's name and catalog number)
⑥ Common Warranty Catalog: If mortgages are to be set for buildings as well as land, joint common warranty will be made.

The above items are important confirmation items. When purchasing real estate, it is necessary to confirm whether the lot number is correct and whether the land area is correct. 
Regarding the rights department (Section A), it is necessary to first confirm whether there is seizure. In addition, if there are multiple owners, it is necessary to confirm whether the seller has all the ownership rights, in the case of a large number, all of them are sellers and whether there is a power of attorney. If there is underlined to the mortgage, it has already been deleted, so it is necessary to confirm it as well.
The right department (Section B) has mortgages and revolving mortgage when the seller has a loan. Elimination of mortgages is often done at the same time when the settlement is delivered, and the judicial scrivener confirms the legitimacy of the erasure procedure and confirms that the remaining amount can be paid. This is also the same as above, and if it is underlined, the mortgage has been deleted.

The common warranty catalog will be detailed in this section if, for example, you purchase land and a building and mortgage both real estates. The symbol and number of the common warranty catalog will also appear on the mortgage holder and other matters. Old deleted information remains as history, but if there is an underline as well, it has already been deleted, so you can trade with confidence. Tomorrow, we will explain the the building registration certificate.

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Real Estate agent in Kyoto, Buy and Sell, Leasing, Renovation and Construction, Management for Investment and Vacation Property, Professional Services for International Customers. We deal in KyoMachiya houses, detached and attached Houses, new and old Condominium Apartments, Block of Apartments and Buildings for Commercial, Residential and Investments use, Manage and Support Operation and New Development of Guesthouse, Ryokan and Hotel, Total Supports for Land and Buildings Real Estate in Kyoto.
Yours sincerely, Founder Ken Hayashi
Real Estate Broker Company License No. Kyoto-Fu Governor ( 1 ) 14044 , ​Member of Kyoto Association of Residential Land Building Business
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
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