Value of Forest Land Zone lots

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crew
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Value of Forest Land Zone lots

Post by crew » Fri Feb 08, 2019 5:08 pm

I am looking at a property that is very cheap as it is under forest land zone. What are the restrictions on these kinds of land? Also from an investment point of view, do these ever change in value (upwards or downwards)? I assume it only goes down as it is not even farm land.

Also what can one do in 2 hectares of forest land apart from building a house there (assuming it is even allowed). Hopefully something profitable that can finance the purchase eventually.

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Zasso Nouka
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Re: Value of Forest Land Zone lots

Post by Zasso Nouka » Sat Feb 09, 2019 6:05 am

Is it classified as 'Sanrin' ? If so you generally have a fair bit of latitude to do what you like with it. Although having said that much will depend on the municipality it is located in, probably worth finding out from them if it is located in some sort of conservation area or has any restrictions placed upon it.

My land is all classified as 'Sanrin' so maybe similar to your prospective land and there have been no restrictions placed upon it. The previous owner clear cut about 75% of the trees to create an open space in the middle of the forest and that didn't raise any eyebrows with the city authorities. We haven't needed any special planning permission to build our house or cafe, just informed the local council once we started building and they came around when it was finished to asses them for tax purposes.

On the subject of tax, our local council includes proper roads as house & garden for tax purposes but doesn't include dirt roads, so if you want to construct an access road (concrete, crushed rock or whatever) do that after the council has been around for tax assessment then that land area won't be taxed at the higher rate.

If you have no building restrictions on that land you could put up a couple of log cabins and rent them out I guess or do something similar.

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Re: Value of Forest Land Zone lots

Post by crew » Tue Feb 12, 2019 4:51 pm

Thanks for the reply. Yeah saw a few that were classified as sanrin. Most fall under the urban readjustment restriction though. Its difficult to really see long term before purchase as what I can do with the land seems dependent on permits etc. that I would only know I can get once I purchase.

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Re: Value of Forest Land Zone lots

Post by Zasso Nouka » Wed Feb 13, 2019 5:33 am

It might be worth going and having a chat with the local councils for each property to see what their attitude is to granting permits. The differences vary quite wildly be locations or just narrow the search down to properties that don't have urban readjustment restrictions, then you have a freer hand.

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Re: Value of Forest Land Zone lots

Post by farmingnoob » Wed Feb 13, 2019 3:36 pm

What are urban readjustment districts in Japanese? 市街化調整区域?

Would this mean you'd have to get permission to grow on sanrin land?

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Re: Value of Forest Land Zone lots

Post by gonbechan » Wed Feb 13, 2019 8:37 pm

It is more about building than growing
This Japanese article from Suumo is quite useful and even translates relatively well with Google translate.
https://suumo.jp/article/oyakudachi/oya ... oseikuiki/

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Re: Value of Forest Land Zone lots

Post by LeeB » Mon Mar 04, 2019 6:37 am

Do any of you watch that TV program, sorry I can't recall the name, where they go around Japan looking for isolated houses out in the middle of nowhere?

Watched a few of the episodes and they were quite interesting.

Also another TV show where some famous guy was looking for cheap land in order to build some kind of animal refuge. Most times the land was cheap, but by the time everything else was added in the cost was astronomical!

"On the subject of tax, our local council includes proper roads as house & garden for tax purposes but doesn't include dirt roads, so if you want to construct an access road (concrete, crushed rock or whatever) do that after the council has been around for tax assessment then that land area won't be taxed at the higher rate."

In regards to all those nifty RE taxes in Japan, when you bought your place, was there much difference between the purchase price and the 'value' that that was in the koteishisan kazeidaichou? I assume that 'value' in the koteishisan kazeidaichou was also used rather than the purchase price?

Also was there much difference as the koteishisanzei that you have to pay is also based on that 'value' in the koteishisan kazeidaichou rather then the purchase price or does you city adjust the values to reflect the purchase price?

I've heard various stories about how RE tax is assessed and the various 'values' used..............

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Re: Value of Forest Land Zone lots

Post by Zasso Nouka » Tue Mar 05, 2019 6:11 am

LeeB wrote:
Mon Mar 04, 2019 6:37 am
Do any of you watch that TV program, sorry I can't recall the name, where they go around Japan looking for isolated houses out in the middle of nowhere?

Watched a few of the episodes and they were quite interesting.
It's still running on sunday evenings, watched it after Nani Kore Chin Hyakkei

LeeB wrote:
Mon Mar 04, 2019 6:37 am
"On the subject of tax, our local council includes proper roads as house & garden for tax purposes but doesn't include dirt roads, so if you want to construct an access road (concrete, crushed rock or whatever) do that after the council has been around for tax assessment then that land area won't be taxed at the higher rate."

In regards to all those nifty RE taxes in Japan, when you bought your place, was there much difference between the purchase price and the 'value' that that was in the koteishisan kazeidaichou? I assume that 'value' in the koteishisan kazeidaichou was also used rather than the purchase price?

Also was there much difference as the koteishisanzei that you have to pay is also based on that 'value' in the koteishisan kazeidaichou rather then the purchase price or does you city adjust the values to reflect the purchase price?

I've heard various stories about how RE tax is assessed and the various 'values' used..............
Can't remember exactly but I think our land tax value was based on a survey by city officials. Originally all three plots were classified as sanrin but when they came around parts of the main plot were reclassified as house and garden while the rest remained sanrin and that altered the tax value. Can't be 100% sure but don't think the sale value came into it, whether this is how other cities assess land tax or do it differently I have no idea.

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Re: Value of Forest Land Zone lots

Post by crew » Tue Mar 05, 2019 8:58 am

What would be the general steps to build a structure on sanrin land? Would there be any exceptions if it were a trailer house or other impermanent structures?

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Re: Value of Forest Land Zone lots

Post by LeeB » Tue Mar 05, 2019 10:10 am

I think the name is pototsun to ikkenya...........