{ "@context": "https://schema.org", "@type": "FAQPage", "headline": "FAQ - Mr.LAND", "author": { "@type": "Organization", "name": "Mr.LAND Co., Ltd.", "url": "{{$url}}" }, "image": "https://storage.googleapis.com/production-os-assets/assets/14eb7ea2-a35d-4c20-b2d0-24b74d0619f5", "url": "{{$url}}", "publisher": { "@type": "Organization", "name": "Mr.LAND Co., Ltd." }, "mainEntity": [{ "@type": "Question", "name": "Can foreigners purchase property in Japan?", "acceptedAnswer": { "@type": "Answer", "text": "

Yes, foreign nationals (whether residing in Japan or not) can purchase real estate in Japan.

" } }, { "@type": "Question", "name": "How can I find a property to buy in Japan?", "acceptedAnswer": { "@type": "Answer", "text": "

If you can read Japanese, there are real estate listing sites such as Suumo, At Home and Homes. There are also English language real estate listing sites such as Real Estate Japan and Japan Property.

Or you can let us curate a personalized list of properties for you. Please let us know your requirements and search criteria and we will be happy to create a list of potential properties for you.

Please click here.

" } }, { "@type": "Question", "name": "Can a resident foreigner get a home loan from a Japanese bank?", "acceptedAnswer": { "@type": "Answer", "text": "

Foreigners with permanent residency (eijyuken) can apply for a loan in the same way as Japanese nationals. However, some banks may require a certain level of Japanese proficiency.

In some cases, a Japanese spouse or a spouse with permanent resident status can be a guarantor for a home loan.

For those without permanent residency, some banks do offer loans but many conditions and requirements apply.

Please feel free to contact us for a consultation regarding loans.

" } }, { "@type": "Question", "name": "Can a non-resident foreigner get a loan from a Japanese bank?", "acceptedAnswer": { "@type": "Answer", "text": "

Unfortunately, it is very difficult for non-resident foreigners to obtain a loan from a Japanese bank.

" } }, { "@type": "Question", "name": "Do I need to get pre-approved from a bank? How can I get one?", "acceptedAnswer": { "@type": "Answer", "text": "

It is advantageous to get pre-approved from a bank so that you can put in an offer as soon as you find a property you like.

Please contact us for more information on how to get financing and pre-approval from a Japanese bank.

" } }, { "@type": "Question", "name": "How much are brokerage fees?", "acceptedAnswer": { "@type": "Answer", "text": "

The maximum amount of brokerage fees in Japan which a real estate agency can receive is set by the Real Estate Brokerage Act. For properties with a sales price of 4 million yen or more, brokerage fees are (sales price x 3% + 60,000 yen) + consumption tax.

" } }, { "@type": "Question", "name": "What other fees and expenses are involved in purchasing real estate in Japan?", "acceptedAnswer": { "@type": "Answer", "text": "

In addition to the actual purchase price of the property, there are other expenses called shokeihi in Japanese which include but are not limited to: earnest money deposit, title registration fees, brokerages fees, property taxes, etc. These other expenses are about 6-10% of the purchase price.

For more information, please see our Guide How to buy a home in Japan by clicking here.

" } }, { "@type": "Question", "name": "What real estate taxes are there?", "acceptedAnswer": { "@type": "Answer", "text": "

In Japan, real estate is subject to annual taxes called fixed asset tax and city planning tax. Property taxes vary from municipality to municipality, but usually a bill is sent around April or May each year, and payment is made to the municipality in which the property is located.

There is also the Property Acquisition Tax which is a one time tax imposed when acquiring real estate. It will be due about 4-6 months post-purchase.

" } }, { "@type": "Question", "name": "What is the earnest money deposit and when do I pay it?", "acceptedAnswer": { "@type": "Answer", "text": "

The earnest money deposit is money paid by the buyer to the seller when concluding a sales contract for real estate such as condominiums and land. In many cases, the contract will state that the deposit shall be applied to a portion of the sales price at the time of payment of the balance. The earnest money deposit is approximately 5-20% of the real estate sales price and it is common for the buyer to pay the deposit to the seller by the day of the contract, and upon confirmation of the deposit, the sales contract is concluded.

" } }, { "@type": "Question", "name": "What are building management fees? Reserve funds for repair fees? Do I have to pay them?", "acceptedAnswer": { "@type": "Answer", "text": "

Condominium owners are obligated to pay monthly building management fees and fees for reserve funds for repairs. The building management fee is for the daily upkeep of the condominium while the repair reserve fund is saved as a construction cost for areas that will need repair as the condominium grows older.

" } }, { "@type": "Question", "name": "What is leased land?", "acceptedAnswer": { "@type": "Answer", "text": "

Leased Land (or Leasehold) is the right to lease land from another person for rent. In the case of a leasehold, the landowners consent is required when selling the building on the land to a third party. In the case of superficies, the building can be freely sold or subleased.

" } }, { "@type": "Question", "name": "What are the different types of new houses in Japan?", "acceptedAnswer": { "@type": "Answer", "text": "Newly constructed single-family homes can be divided into three types:

(1) custom-built homes.In the case of custom-built housing, the land and building are separate. Floor plans, designs, and facility specifications can be freely selected.
(2) land with building conditions.In the case of land with building conditions, the land and building are separate. The building company is already chosenand you can choose from already prepared floor plans, designs and facility specifications.
(3) ready-built homes for sale.In the case of ready-built houses for sale, the land and the building come as a set. The floor plan, design, and facility specifications are already decided.

Each has its own merits and demerits, so please feel free to consult with us." } }, { "@type": "Question", "name": "What are gross yields and how are they calculated?", "acceptedAnswer": { "@type": "Answer", "text": "There are two main types of yields in real estate investment:surface (or gross) yields and real (or net) yields.Surface (or gross) yield is the rate of return on rental income earned in one year relative to the investment amount (property value).

- Real yield (net yield) is the rate of return obtained by subtracting expenses from the rental income earned in one year against the investment amount (property price).
- Yields posted in real estate advertisements and on real estate websites are generally surface yields. Since various expenses are incurred in real estate investment not only at the time of property acquisition but also at the time of operation, be mindful of making judgments based only on surface yields.

" } }, { "@type": "Question", "name": "How do I find a property (or rental) management company to manage my investment property?", "acceptedAnswer": { "@type": "Answer", "text": "

When you purchase an owner change or already tenanted property, it is often the case that a management company is already operating the property. If communicating in Japanese is not an issue, you can simply take over the property management company as well.

If, on the other hand, you do not speak Japanese or you wish to install a different property management company, please consult us and we can introduce you to a different management company or a company that can handle the property in English.

" } }, { "@type": "Question", "name": "Can you purchase an investment company from outside Japan?", "acceptedAnswer": { "@type": "Answer", "text": "

Yes, you can purchase property from abroad. We can handle contracts and close remotely.

Please ask us for advice on how to handle international transactions.

" } }, { "@type": "Question", "name": "Can I rent out my property on a short term basis like on Airbnb?", "acceptedAnswer": { "@type": "Answer", "text": "

In the case of condominiums, the building management association must allow short term stay accommodations (in most cases, they do NOT allow short term stays). In addition to the above, the property must meet certain requirements, such as having a building certificate, meeting a minimum floor area, and meeting building and fire codes. In some cases, you also need a minpaku (short term stay) license. Please consult your local municipality for more information on short term stays.

" } }, { "@type": "Question", "name": "If I buy property in Japan, will I qualify for a visa?", "acceptedAnswer": { "@type": "Answer", "text": "

No. Immigration laws are very strict in Japan. In order to obtain permanent residence, an applicant must have lived in Japan for at least 10 years, and applicants are subject to very careful screening.

However, it is possible to obtain a status of residence known as an Investment and Management Visa or Investor Visa by setting up or managing a business in Japan that invests in Japanese real estate. Please consult with a specialist for more information.

" } }, { "@type": "Question", "name": "What kind of insurance should I get?", "acceptedAnswer": { "@type": "Answer", "text": "

If you are purchasing a building, please consider purchasing fire and earthquake insurance to prevent a fire from destroying the purchased house and leaving you with only the borrowed funds. You should also consider purchasing life insurance to ensure that the remaining family members will not have difficulty repaying the loan in the event of the purchasers death. Insurance coverage will incur premiums.

" } }, { "@type": "Question", "name": "What is a teitouken?", "acceptedAnswer": { "@type": "Answer", "text": "

A teitouken is the right of the financial institution to use real estate such as land or buildings as collateral in case the repayment of the mortgage is delayed.Therefore, when you take out a mortgage loan, the financial institution asks you to set a teitouken up on the land and or building.

"} }] }