One day, while chatting with a fellow broker about recent cases, I heard a story that left a strong impression on me.
An overseas buyer, through that broker, had purchased a vacant house in Tokyo’s 23 wards for less than ¥5 million.
When asked how much renovation would be needed to make it livable, the broker told them about ¥4 million should be enough.

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In central Tokyo, a property priced under ¥5 million speaks for itself. Out of curiosity, I asked what their exit strategy was. The broker replied, “The best case is to sell it to the next-door neighbor.”
Given the price, it was clear that the property likely carried some legal issues, and that it was at least 30 to 40 years old.
That means key infrastructure—such as private water lines—could be heavily deteriorated if nothing had been updated for decades.
Yet, none of this seemed to have been discussed.
The buyer was told not to worry, since they only wanted to make minor repairs to make it “livable.”
Of course, the Explanation of Important Matters must have mentioned that the facilities had aged and any repairs would be the buyer’s responsibility.
But is that really enough?

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At first glance, visible defects may seem easy to identify—but they represent only a fraction of potential issues.
The cost of building materials and labor continues to rise year by year.
Depending on the property’s age, elements like the water supply pipe or electrical panel may already be near the end of their lifespan.
Without an inspection or an estimate from a renovation contractor, any “rough idea” of renovation cost should be treated with caution.
A broker is not a renovation professional, so they cannot provide accurate estimates.
What they usually say is something vague like “It shows signs of age” or “Major repairs may be needed.”
And in most cases, the buyer’s expectations based on such general comments or the contract documents differ drastically from the actual risks and realities.
 

If the property cannot be rebuilt, reselling it will be extremely difficult.
Yes, if the next-door neighbor buys it, that would be fortunate—but that’s wishful thinking, not a strategy.
There’s no guarantee that the neighbor would even find it beneficial to buy.
Given the property’s location, its below-market price, and current market conditions, the asset risk should be taken very seriously.

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It’s unclear why the buyer purchased that property, but from what I heard, no proper advice or warnings about risks were provided—despite the extremely low price.
When the buyer eventually decides to sell, they will likely face serious difficulties.
Considering the property’s size and condition implied by that price range, expecting to recover the investment would be unrealistic.
Markets evolve, and regulations change. Nothing is ever 100% safe, but from an investment perspective, it’s far wiser to avoid something that is obviously high-risk and low-return—unless there’s a solid, strategic reason to do so.

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Of course, there are cases where, after weighing all the risks, such a property may still be the best fit for a buyer’s goals and budget.
The problem arises when the buyer’s perception of risk is overly optimistic—when their plan is based not on reality but on expectation.
I’ve seen this happen many times.
Each time, I’m reminded of how crucial consulting is for overseas buyers.
 

Unfortunately, few overseas buyers truly understand the value of consulting.
Many place greater trust in their own assumptions—formed through real-estate experiences in other countries—or in what they find on social media or YouTube, rather than in the perspectives of professionals who actually work in Japan every day.
As a result, they often underestimate renovation costs or overlook the challenges and expenses of property management, maintenance, or operations.
Many start searching with unrealistic budgets and plans based on hope, not on reality.

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One of the most common mistakes among overseas buyers is trying to apply what worked in their home country to Japan—and failing.
They may understand the procedural side of real-estate transactions, but they often lack the deeper understanding of what’s truly required to achieve their purpose.

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Japan is a different country—with its own laws, culture, customs, and social norms.
It’s important to reset prior assumptions and build strategies not on expectations, but on the realities of Japan.
That requires thorough research and accurate information, along with an understanding of practical processes, costs, and management methods—while bridging the gaps of culture and common sense along the way.

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For Japanese buyers, this is relatively easy.
They can gather information, plan, and attend seminars or community discussions in their own language.
For overseas buyers, however, everything takes much longer.
Language barriers, cultural differences, and unfamiliar systems make understanding far more difficult.

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Every investment carries risk—but there’s a big difference between recognizing a risk and not realizing that one exists.
If each piece of information is a dot, connecting those dots to form lines, and then building those lines into a complete map, is what enables a strategic and realistic approach.

Consulting is about helping you draw that map.

Overseas buyers start from an inherently disadvantaged position compared to Japanese buyers, facing higher barriers of language, culture, and access to information.
Recognizing this difference changes how you plan and how you act.
After seeing and hearing countless cases of difficulties and failures among overseas buyers, my hope is that more of them will take a grounded, realistic approach—understanding the process step by step, and making their dreams in Japan come true.

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