Getting Rich In Japan By Buying Court Auctioned Properties

This is a follow-up to an article I wrote more than three years ago on buying distressed properties. I have had so many people who have responded and asked various questions on this subject I wanted to update and address some of these questions here on JP. There have been some changes in the law and court procedures since I wrote this and I feel a strong need to address them, along with the experiences of myself and numerous others who have been kind enough to contact me describing their ordeals and accomplishments.

[Before reading this post, check out the original article.]

THERE HAVE BEEN SOME CHANGES IN THE LAWS regarding disposal and transference of distressed properties that are auctioned by the court. These changes have resulted in making court auctioned properties more attractive to potential bidders in several ways.

THE PROCESS HAS BEEN SIMPLIFIED AND SPED UP so that from application to closure, what used to take months for administration, has been shortened and made more efficient. I understand now that what previously used to require a substantial period of time, from start to finish, now requires only a matter of weeks in some cases. This obviously benefits the buyer eager to get hold of their property.

IT IS EASIER TO EVICT THE DEBTOR/OCCUPANT after the property has been auctioned. One of the biggest worries to many potential bidders has been getting rid of former owner/occupants who will claim possession of their property ’till they drag out my dead bones.’ Formerly occupants rights in Japan favored the tenant who absolutely refused to vacate. Now the process of eviction is simpler and covers the new owners rights in getting access to his property in a timely manner.

PHOTOGRAPHIC EVIDENCE OF THE INTERIOR WILL BE PROVIDED to the potential bidder. This is truly a godsend to the potential buyer of a property who up till now has wondered and had no idea of what the interior of the property consisted of. Whether it was left neatly or totally trashed was always a mystery and never known by the winning bidder until after purchase was finished and they finally had access to the inside. Also this evidence will be taken twice by the court once at the beginning and again shortly before closure to ensure that the interior has not been destroyed or gutted by the former occupants.

ANYONE CAN BID a little known fact has been that ANYONE can bid on a property at court auction in Japan, you don’t even need to be a resident of the country. This is great for the potential investor or anyone not currently residing in Japan who wishes to bid on a property. Several enterprises have sprung up in recent years to assist non-native speakers through the process, for a fee of course.

OWNING SOMETHING MAKES IT A LOT EASIER TO GET FINANCING as many have found when trying to obtain mortgages from Japan banks. Any sort of property ownership already demonstrates long term stability and gives the bank something to attach a mortgage to when granting a loan. Some people have used property they purchased at auction to finance their own or other real projects. It also has come in very beneficial for some while seeking Permanent Residency.

Since writing that article, I have had the chance to hear from many happy folks who were able to not only obtain real property for themselves and their families at reasonable prices, but many have taken advantage of the opportunity to greatly increase their net worth. Whether for resale/rental income/retirement, and other opportunities, becoming a real estate millionaire is a dream that has been achievable even over a relatively short period of time (3 years) for some I am glad to be able to say.