Case Study
Finding the Right Balance Between Commute, Convenience and Space in Tokyo
Overview
Our client was a single man who had already been living in Japan for around 15 years and was looking to purchase an apartment in Tokyo under joint ownership with his mother. He did not have a large budget, but he wanted to find somewhere of a reasonable size in a location that was pleasant to live in, in an apartment no older than 40 years.
He worked in Shinbashi in the center of Tokyo and wanted to keep his commute to within approximately one hour by train. He wanted somewhere to park his motorbike (he didn’t own a car), wanted to live reasonably close to a station, and also placed importance on having supermarkets, shops and other everyday conveniences nearby.
Although he did not currently have a pet, he wanted to keep that option open for the future. He was also looking for a nicely renovated apartment with enough additional space for visiting family members to stay comfortably.
Challenges
There were quite a few different priorities to balance.
The property needed to offer a manageable commute to Shinbashi, reasonable station access, good everyday convenience and enough space, while also allowing pets and ideally providing somewhere practical for the client’s motorbike.
After we located a number of properties that appeared to fit the search conditions, the client spent a day or two travelling along the main train line, getting on and off at different stations to get a better feeling for how livable each area actually was.
One of the first properties we viewed was on the first floor of a large apartment complex. In addition to a very large patio, it had exclusive use of a substantial side passage that could not be accessed by other residents. This was particularly tempting, as it offered an excellent space for storing and working on the motorbike.
However, despite the unusual outdoor space, the location was slightly less attractive than some of the other options, and the client eventually decided to pass on it.
We also viewed a number of newly renovated apartments located within 10 minutes of their stations. They were perfectly reasonable choices, but none of them produced that important “aha” moment.
Solutions
We then visited another renovated property around 15 minutes on foot from the station, but less than 200 metres from a major shopping centre.
Before arriving, this was actually one of the properties for which we had the lowest expectations because of the longer walk to the station.
Once we found the building, however, our impression started to change.
The building had an unusual design in which the entrance to each apartment felt almost semi-private, accessed from the staircase with its own entrance porch. The porch of this particular property also looked out towards a nearby park, giving the entrance a surprisingly open and pleasant feeling.
Once inside, it became clear that the renovation had been completed to a much higher standard than many of the other properties we had seen. Furniture had also been carefully positioned throughout the apartment, making it much easier to imagine how the space would actually work as a home.
The client was particularly impressed by the stylish renovation, the south-facing balcony, the entrance porch and the fact that every room had a window – and every window opened out onto a private space with complete privacy – something very rare in large apartment complexes.
The solid concrete walls between the apartments were another attractive feature, as they offered better separation from neighbouring units and helped reduce concerns about noise.
The client took plenty of photographs and videos during the viewing so that he could discuss the property with his family overseas.
Although the apartment building itself was approximately 40 years old, our review of the building finances also showed that it had a generous repair reserve fund available for future maintenance and repairs.
For reference, we also visited another apartment – slightly more expensive but located much closer to the station – that had also been very nicely renovated. However, on looking into the details of that apartment building, we could see that the repair reserve was underfunded and that, if the client were to buy it, he would be facing a sharp increase in the repair fund from ¥20,000/month to more than ¥45,000/month so that the building could pay for upcoming repairs.
Taking all of these factors together, the target property offered a much better overall balance than we had expected.
Results
The client decided to make an offer and was able to negotiate a small discount from the asking price.
The next challenge was making sure that his mother, who lived overseas, could also be registered as a joint owner of the property without complications.
There were a few initial hiccups, including some confusion over the Japanese requirements for an “affidavit,” but the client was eventually able to obtain the necessary documentation required by the Legal Affairs Bureau to confirm the identity of a foreign non-resident owner.
With the ownership arrangements resolved, the purchase funds were successfully transferred to Japan from overseas via the IREA corporate account and the transaction was completed successfully.
Before handover, we also helped arrange the utilities in the client’s name so that everything would be ready when he took possession of his new home.
The property that initially looked like one of the less likely choices on paper ultimately became the one that best matched the way the client actually wanted to live.
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