What are the disadvantages of purchasing or inheriting leased land? [Survey Results Announcement]

Survey on the disadvantages of acquiring leased land While leased land offers stable ground rent income, it is a type of real estate with unique difficulties, such as restrictions on the free use of the land, and challenges in contract renewal and dispute resolution with leaseholders. However, there is currently insufficient information available regarding its specific risks and actual management. Therefore, Dream Planning Co., Ltd. (Naka-ku, Yokohama, Kanagawa / Representative Director: Takashi Takahashi), which operates the real estate problem-solving website URUHOME, conducted a survey targeting individuals interested in real estate (289 valid responses) to understand their perceptions of the disadvantages of acquiring leased land. [Request regarding citation and reproduction of data] When using the survey results and images from this release, please include a link to the URUHOME (ウルホーム) URL (https://uruhome.net/sokochi-demerit-survey/) where the survey results are published. No permission from our company is required for publication. [Survey Target] 〇 Target: "Individuals interested in real estate" 〇 Valid responses: 289 〇 Gender composition: Male: 179 (approx. 62%) Female: 110 (approx. 38%) 〇 Age group composition: 20s: 52 (18.0%) 30s: 97 (33.6%) 40s: 81 (28.0%) 50s: 45 (15.6%) 60s: 14 (4.8%) 70s and above: 0 (0%) 〇 Survey organizer: Dream Planning Co., Ltd. 〇 Survey method: Internet questionnaire survey 〇 Survey period: 2025.7.28-2026.2.1 What are the disadvantages of purchasing or inheriting leased land? What are the disadvantages of purchasing or inheriting leased land? ● 1st place: Prone to disputes 128/289 44.3% ● 2nd place: Difficult to negotiate with leaseholders 120/289 41.5% ● 3rd place: Difficult to sell 95/289 32.9% ● 4th place: Requires specialized knowledge 90/289 31.1% ● 5th place: Meaningless as one cannot use the land oneself 51/289 17.7% ● 6th place: Difficult to convert to cash 41/289 14.2% ● 7th place: Not well understood 32/289 11.1% ● 8th place: Difficult to obtain financing 18/289 6.2% ● 9th place: Appraisal value at inheritance is higher than market price 13/289 4.5% ● 10th place: Few disadvantages 6/289 2.1% Specifically, what are the disadvantages of purchasing or inheriting leased land? Next, we will introduce comments from those who chose 1st to 5th place. 1st place: Prone to disputes 128/289 44.3% The biggest disadvantage of leased land, "prone to disputes," approached the majority at approximately 44%. Many respondents expressed anxiety about human relationships and rights adjustments with leaseholders and related parties, with comments such as "Negotiating prices with leaseholders seems difficult," "Likely to have conflicts over ground rent increases," and "Troubles seem to increase further if there are multiple heirs." ★ ★ "I felt that negotiating prices with leaseholders would be difficult. Also, I thought it would be difficult to predict fluctuations in leased land prices and to determine the timing of sale. From the perspective of an heir, I would want it to be organized before inheritance to avoid disputes." 50s, Female "If you inherit, you also inherit the circumstances surrounding that property, so I would prefer it to be disposed of before inheritance if possible. There are many disadvantages such as being difficult to sell and prone to disputes, and I feel it's not worth getting into trouble over inheritance." 40s, Male "While not needing to maintain the building is attractive, the disadvantage of difficult negotiations with leaseholders felt greater. If you want to avoid trouble, it might be better not to get involved." 30s, Female 2nd place: Difficult to negotiate with leaseholders 120/289 41.5% "Difficult to negotiate with leaseholders" was chosen as the 2nd place answer. As one respondent stated, "I felt that inheriting it as is would be difficult because I have experience with the disadvantages checked above," indicating that even those who have actually negotiated with leaseholders found it difficult. ★ ★ "I felt that inheriting it as is would be difficult because I have experience with the disadvantages checked above. In particular, I am concerned about difficult negotiations with leaseholders and the difficulty of selling." 40s, Male "Difficult negotiations with leaseholders and difficulty in selling stood out as disadvantages. I feel it would be better to sell it before inheritance if possible, or if it cannot be sold, to hold onto it and earn ground rent income." 60s, Female