| > | | | | You don't have the safety blanket of knowing that |
| For a foreigner, buying a property in Japan can be a | | | | you are saving on rent if you are only purchasing the |
| confusing, difficult and frustrating experience if you | | | | property as an investment, so the risk is greater. If |
| don't know how to approach it. This article provides | | | | you are looking for an investment place and think the |
| inside tips from an expert on how to go about | | | | property is not going to go up in value then you are |
| purchasing a property in Japan from scratch, whether | | | | better off not purchasing. A simple question to ask |
| you are a resident or non-resident. | | | | yourself is "Can I get a better return than the cost |
| For a foreigner, buying a property in Japan can be a | | | | of the loan?". Last year there were some increases in |
| confusing, difficult and frustrating experience if you | | | | property prices, making it more difficult to achieve |
| don't know how to approach it. | | | | positive yield (positive yield means you are making |
| General advice for people looking to purchase | | | | more money from renting your property out |
| property in Japan | | | | compared to the total of your other costs). If one is |
| The type of place you purchase will depend on the | | | | buying then a longer term commitment is required, so |
| reasons why you want to purchase a property. I | | | | it could be a costly mistake if it doesn't suit your |
| recommend taking a pen and writing down all the | | | | purposes. |
| reasons you can think of as to why you wish to | | | | Is there any law against foreigners buying houses |
| purchase a property. This will help you to better | | | | apartments in Japan? |
| understand your own reasoning behind your decision | | | | There is no law or legal restriction against foreigners |
| to buy or not to buy. | | | | buying a property in Japan, either as a non-resident |
| You should ask yourself two important questions1) | | | | or resident. The biggest problem for foreigners |
| do I want an investment property? OR2) do I want | | | | buying property in Japan is getting the loan. If you |
| to live in it? | | | | have been a resident of Japan for some time (at |
| Your answer to these questions will influence your | | | | least 2-3 years) it helps with the loan application. If |
| decision on what type of property you purchase. If | | | | you have a stable income and have been at the |
| you are purchasing because you want to live in it and | | | | same company for at least three years your chances |
| stay a while, you have more options than if you | | | | of getting a loan dramatically increase. Those who |
| looking to purchase an investment property. If you | | | | are married to a Japanese person will also find it |
| intend to live in the property for a long time, you will | | | | easier than other to purchase a property because |
| be saving on the rent you would have been paying | | | | they have the spouse visa. |
| anyway on a rental property so the decision to buy | | | | It's important to note that tax treatment is different |
| in many respects is a lot easier. If you intend to live | | | | depending on who purchases the property. |
| in Japan for more than 5 years I generally | | | | How do non-residents of Japan go about purchasing |
| recommend purchasing a property as opposed to | | | | a property? |
| renting. | | | | If you are a non-resident it is necessary to set up a |
| There are personal and market considerations. If you | | | | special purpose company through which their real |
| are going to live in it, make sure you live in a place | | | | estate properties are held. This used to be done |
| which is suitable now and for the future. If your job | | | | through a Yugen Gaisha (or YK) which are now |
| is likely to change, make sure you can rent it out or | | | | obsolete. There are several companies you can use |
| easily sell it. In terms of location this will obviously | | | | which are known as special purpose vehicles for |
| differ from person to person. For example, one | | | | holding real-estate. The costs involved in doing this |
| person may want to live in Yokohama near sports | | | | differs depending on the structure; up to 1/2 million |
| facilities while someone else may want to live near | | | | yen for simple purchases and more for complex |
| Roppongi so they can enjoy the night life. Others | | | | ones. If you are a resident of Japan it will usually not |
| may just want something cheap to live in. | | | | be necessary for you to do this. |