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It's easier to sell land with a building on it that is immediately useable. This impacts bank decision making. For example when you buy bare land recreational
by Tiktaalik 5y ago
It's easier to sell land with a building on it that is immediately useable. This impacts bank decision making.
For example when you buy bare land recreational property you often have to pay cash because no lender wants to have bare land on their books.
You will struggle to get a lender to give you any money for a condemned building (I've tried).
In Canada it is simple to get a mortgage on on a property with a house on it because there's a "usable" house on it and the bank can easily sell the property.
Perhaps this is the same in Japan as well, even if the house is 25 years old, but it depends on how they look at that 25 year old "worth $0" property. Perhaps as long as it's "livable" lenders don't mind and one doesn't run into the road blocks one would run into if they were trying to buy bare land.
Or perhaps it's simply much easier to buy bare land in Japan than it is in Canada!
- masklinn 5y ago> It's easier to sell land with a building on it that is immediately useable. Have you considered that a country where houses are essentially never considered usable buildings would have a different outlook on the matter? > Or perhaps it's simply much easier to buy bare land in Japan than it is in Canada! Well yes considering it’s more or less the norm in Japan but not in Canada.
- quartesixte 5y agoThe average Japanese “home buyer” will, upon purchasing the lot they wish to live, immediately demolish the previous house and set about getting the house they just ordered from one of a multitude of builders/designers/brands (Muji sells houses!) built within about a 3-4 months so they can move in. Land has value in Japan. Houses do not.