Is "not worth it" an assumption?

When my parents' house becomes an empty house, August 19th 19:11

"It's sad to tear it down, but I'm worried about continuing to own it

.

"

is.

Even if you want to let go, you may end up with a vacant house because you think it has no asset value.

Don't you think that only some properties in good locations sell?

But it may be too early to give up.

(Saturday Watch 9 reporter Yukiyo Nagano)

Anxiety about the vacant house

Mayumi Matsukawa (48), who lives in Tokyo with her family of four, lost her mother two years ago and inherited her parents' house.

Her house is in Yokoze Town, Saitama Prefecture, which takes about two hours by car.

A small town with a population of about 8,000 in the Chichibu region.

She's been dropping by once every few months to clean up, but she doesn't feel like leaving her family home anytime soon.

Mayumi Matsukawa

"I think it's better to deal with it quickly, but if you don't have a place to relax when you come to Obon or visit a grave, I feel that the chances of coming will decrease. I have to move on to the next step. But I also have memories, so it would be sad to tear them down.”

In the house, a picture of Matsukawa's son when he was a baby was still displayed with the message "Please stay healthy forever."

While I have a fondness for only the house I lived in for many years, it has been over 40 years old and is inevitably dilapidated.

Anxiety is said to be endless.

Mayumi Matsukawa:

"Is the roof damaged by the typhoon? Is the damaged roof blown away and causing trouble to the neighbors? Is the plant overgrown? Is there a suspicious person inside? Is the fire safe?" There's no end. I'm always worried. But what should I do?"

Do you think that "it won't sell"?

Mr. Matsukawa didn't know how to deal with it, and thought of his parents' house as a "negative" real estate.

It was a letter from the town hall that made her feel positive.

A leaflet was included with the document informing about property tax.

It was written that the local government and the real estate company will work together to investigate the condition and value of the house for free.

Mr. Matsukawa decided to apply immediately.

The survey is being conducted by a real estate company in Tokyo that has rehabilitated more than 170 vacant houses.

Employees who are qualified as "vacant house consultants" will visit the house and check the damage to the building, such as whether the pillars can be used without problems, and the degree of cracks in the walls.

We carefully check the inclination and strength of the house, the width of the adjacent road, etc. from the condition of the plumbing equipment, and investigate the value of the property in about an hour.

After that, we will calculate the assessed price when selling, the cost required to clear the land, and the renovation cost required to make it a rental property, and summarize it in a report.

In Mr. Matsukawa's case, it was written that it would cost more than 4 million yen to completely renovate, rent would be tens of thousands of yen per month if rented, and more than 1.5 million yen could be expected if sold.

Mayumi Matsukawa

“Until now, I thought that if I were to sell my house, I would have no choice but to sell it. I haven't made a drastic decision yet, but I feel like I've taken a big step forward."

This real estate company has investigated over 1000 vacant houses so far.

Most of them are properties that the current owner inherited from their parents, and there were many cases where they had given up because they had no asset value.

Mr. Shinichi Moriyama of FANTAS technology

"First of all, I want you to know the current value of the property through this survey, and it will be an opportunity for the owner to think about it. If no one lives in the house, it will deteriorate very quickly. Leave it as it is. If you do, you may be designated as a “specific vacant house” that is in danger of collapsing, and may be ordered to be removed by the local government.In that case, dismantling costs will also be incurred.While the house is in good condition, decide how to use it quickly and sell it. The value of the house is preserved by renting it out and using it.”

The problem of empty houses is serious not only in sparsely populated rural areas, but also in cities.

Reasons why vacant houses are increasing in Tokyo's 23 wards

The number of vacant houses in Japan is about 8.49 million, or more than 13%.

The number of vacant houses ranked by municipality is as follows.

▽ 50,250 units in Setagaya Ward, Tokyo

▽ 48,450 units in Ota Ward, Tokyo ▽ 47,580 units in

Kagoshima City ▽ 44,410 units

in Utsunomiya City ▽ 44,390 units in

Higashiosaka City ▽ 39,660 units

in Adachi Ward, Tokyo

▽ 39,340 units in Matsuyama City 39,040 units

in Gifu City 38,710 units

in Suita City, Osaka Prefecture 37,800 units in

Takamatsu City

(2018 Housing and Land Statistical Survey)

In a survey conducted by a real estate company in Tokyo among owners of vacant houses, more than 70% of them answered that they would like to use them. Negative answers were given, saying that remodeling and renovation costs money (29.7%) and that property taxes are high (28.3%).

As for the reasons for leaving vacant houses, "No matter what I do, it costs money (35.0%)," "I want to use it, but I don't know what to do (30.7%)," and "The building doesn't seem to have any value (23.7%)." )”.

(Survey of 300 owners of vacant houses in Tokyo and 3 prefectures in 2020 / Akisapo Vacant House Research Institute)

On the other hand, we do not know how to use it, and the financial burden is a problem.

Therefore, there is a movement to create demand by devising ways to rent even properties that owners think are "old and inconveniently located" without so-called asset value.

Are “inconvenient” and “old” vacant houses attractive?

A real estate company in Matsudo City, Chiba Prefecture, is focusing on a service called "DIY type rental".

It is characterized by the fact that tenants can make renovations by themselves and can rent cheaper than the market price.

It is said that you can move in at a rent that is 20 to 30% cheaper than the market price, and you can renovate it to your liking.

If you have refurbished with the owner's permission, you are not obliged to restore the original state when you move out.

For the property owner, there is also the advantage of not incurring a large initial investment or repair costs when renting out a house.

Normally, even if you want to use a vacant house, there are a wide variety of things you have to do, such as cleaning up, construction, recruiting and managing tenants.

Cost is also a hurdle, but DIY-type rentals can reduce such burdens.

According to this company, there is a strong need among people who like old houses, people who want to customize them to their liking, and artists and craftsmen who make things.

CEO of omusubi Real Estate Kengo Tonozuka

“For example, craftsmen who make shoes and artists who create works of art often seek a degree of freedom in their creative activities rather than the newness and beauty of the space. When trying to create a house, there are times when you can't take on the challenge due to real estate constraints such as "don't mess with the interior", but if you're a vacant house DIY, you can use it freely and cheaply even if it's old. It's like a stage for starting something new, and I think it has a lot of potential.For people who don't commute every day and work from home, the distance to the station doesn't matter."

Some people have decided to move in because they are attracted to being able to change their residence to their liking.

Lisa Suzuki, who lives in a property in Matsudo City, works as a company employee while also making hand-sewn leather bags and clothes using kimono linings.

She has three sewing machines, and she needs a space of about 3 tatami mats just for the materials necessary for production.

What I found there was a property that was built more than 40 years ago and looked quite old from the outside.

However, for Mr. Suzuki, the size of 63 square meters was perfect, and the rent was cheaper than the surrounding properties, so he said that he made a quick decision.

Taking advantage of the characteristics of DIY rentals, I changed the old kitchen and walls to my favorite color.

Ms. Lisa Suzuki:

"I've never done DIY before, but I feel a sense of accomplishment in researching construction methods and taking the time to create a comfortable space in order to change the room to my liking. It's old, but it's spacious, it's cheap, and I'm very satisfied."

First, discuss with your family.

Mr. Shinichi Ono, a housing consultant and representative of the real estate consulting company "Next Eyes" in Tokyo.

I also lost my father suddenly and inherited an empty house.

We asked him what he should do if he were to own a vacant house and not panic.

Mr. Shinichi Ono

▽First of all, grasping the current situation

Correctly organize the status of land and building rights, damage to the building, etc., and grasp the problems and market value.

▽ Judging how to use without rushing Determine whether to

sell, renovate and rent, or clear the land.

Recently, it seems that there are some companies who take advantage of owners who are worried about how to dispose of vacant houses, saying that "vacant houses cannot be sold" even if they can be expected to sell for a reasonable price, and buy them at exceptional prices.

Therefore, when considering selling, he said that he should negotiate with multiple vendors after properly assessing the value of the property he owns.

Even more important, he says, is to discuss inheritance issues with the family while the parents are in good spirits, so that they do not suddenly have to think about inheritance or get into trouble with siblings.

What do you want to do with the house where your parents live now, and what do you want to do in the future?

It may be difficult for the child to ask, since the story is based on the premise that the parent will die.

But if both of us are not healthy, we will not have the opportunity to talk.

Mr. Ono emphasized the importance of inheritance, saying, "Depending on whether or not the parents have communicated their intentions, the progress of the inheritance will be greatly different."

While the increase in vacant houses has become a serious problem, the spread of telework and soaring housing material prices due to the corona crisis are tailwinds for utilization.

I would like to expect that the value of empty houses will be reconsidered and efforts to make use of them will spread.

Saturday Watch 9 Economic Caster

Yukiyo Nagano

Joined in 2011 After working at the Gifu and Kagoshima Bureaus,

economic newscaster from April

in the Economic Department