Understanding the Challenges of Co-Ownership Properties in Japan

The Hidden Challenges of Co-Owned Properties in Japan

In Japan, approximately 8 million households are grappling with issues related to co-owned properties. According to a recent survey conducted by Nexwill Co., Ltd., more than 80% of respondents are unaware that such properties can be sold. This situation is alarming, especially given the complexities surrounding inheritance and property management.

Unveiling the Numbers

The survey, which targeted 11,199 individuals aged 40 and above, estimates that 8.45 million dwellings across the country fall under the category of co-owned properties. Out of these, about 6.12 million are currently inhabited, while the remaining 2.33 million are unoccupied, raising concerns regarding vacant homes and potential inheritance disputes.

Interestingly, only 16.5% of those surveyed know that co-ownership allows for the potential sale of these properties. This leaves a vast majority, approximately 83.5%, in the dark about their rights and options regarding co-owned assets. It appears that awareness and knowledge about navigating such assets are major barriers that need to be addressed urgently.

The Burden of Co-Ownership

A significant portion (9.4%) of respondents noted they are already facing challenges associated with co-owned properties. Common issues include the management and disposal of the estate after the passing of an owner, complications linked to shared interests among relatives, and burdening costs such as taxes and maintenance fees. The survey highlighted that 46.7% of participants felt financially overwhelmed by these expenses, indicating a dire need for practical solutions.

Younger generations particularly struggle with co-ownership problems, as they tend to lack clear communication among co-owners. Many were puzzled by the whereabouts of co-owners or unable to establish contact, which escalates tensions and complicates decision-making further.

The Push for Action

Perhaps most concerning is the fact that 70% of those aware of their struggles wish to resolve these issues swiftly, with 10.3% looking for immediate solutions. However, the rate of individuals who have consulted professionals about their co-owned properties is abysmally low, with an astonishing 88.7% admitting they have never sought expert advice. Engaging specialists like real estate agents, tax advisors, or legal professionals could empower individuals with the knowledge required to navigate their unique predicaments.

The Increasing Market of Co-Owned Properties

The increasing number of co-owned properties along with rising inheritance rates suggests that we are likely to see even more instances of 'problematic' real estates in the near future. From forced co-ownership situations resulting from familial inheritance to houses that can't be sold due to complex rights issues, the market is poised for growth

This trend emphasizes the pressing need for widespread education concerning the nature and value of co-ownership rights. As public awareness expands, those burdened with co-owning properties may find solutions that not only alleviate their current struggles but also prevent further deterioration of the property market.

The Role of Nexwill

Nexwill Co., Ltd. is at the forefront of addressing these issues through its services. Their program, “Wakegai”, specializes in purchasing troublesome properties, managing the complexities associated with ownership, and streamlining the resale process. Their C2C platform, “URI-KAI”, connects buyers and sellers of co-owned and problematic properties online, offering a seamless way to engage with the real estate market.

In a society where inherited properties often become liabilities due to the complexities they present, initiatives by Nexwill and similar companies are essential for helping individuals reclaim control over their assets. Possibilities for co-ownership need clearer paths to sale and liquidation. Educating the public on these options is crucial to mitigating the issues associated with co-ownership problems in Japan.