What is the outlook for the Japanese residential real estate market this year? Has the recent turmoil in global markets affected foreign buyer interest? In fact, bilingual real estate agencies in Tokyo are continuing to receive strong interest from foreign buyers in and outside Japan, as the fundamental attractions of Japanese residential property continue to be solid. Despite the uncertainties in the global market, the demand for Japanese real estate remains steady. The question is, what does it take to buy a home in Japan, and what are the essential steps to follow?
General home buying procedures in Japan
The process of buying a home in Japan involves several steps, including initial fact-finding, needs analysis, and explaining cultural nuances. This includes understanding the various types of homes available, including apartments, houses, and land. Buyers must also familiarize themselves with the fees and taxes associated with buying a property in Japan. * Fees and taxes associated with buying a property in Japan:
• Registration fees (around ¥100,000 to ¥300,000)
• Real estate agent fees (around ¥200,000 to ¥500,000)
• Transfer taxes (around ¥500,000 to ¥1 million)
• Property taxes (around ¥50,000 to ¥100,000 per year)
Financing options
Financing options for foreign buyers in Japan vary depending on their visa status and interest rates. As of 2023, the interest rates for foreign buyers have been steadily declining. However, it is essential for buyers to research and compare different financing options to find the best fit for their needs. • Visa-based financing options:
• Visa Waiver Program (VWP): This program allows foreign visitors to stay in Japan for up to 90 days without a visa. • Specified Skilled Worker (SSW) visa: This visa is designed for highly skilled foreign workers who have a job offer in Japan. • Intra-Company Transferee (ICT) visa: This visa is for foreign employees who work for a company that has a branch in Japan. • Joint mortgage plans for couples:
• Dovetail Inc. offers joint mortgage plans that allow couples to co-sign for a mortgage, regardless of their immigration status. • This option is ideal for same-sex couples, LGBTQ+ individuals, and couples who are separated. • Interest rates:
• As of 2023, the interest rates for foreign buyers have been declining. • However, interest rates can fluctuate, and buyers should research and compare different options.
Akiya vs abandoned houses
The term “akiya” has become a marketing label in Japan, referring to abandoned houses that have been converted into homes. Akiya are often marketed as affordable and sustainable housing options. However, it is essential for buyers to research the history and condition of the property before making a purchase. • Characteristics of akiya:
• Affordable pricing
• Sustainable materials and energy-efficient design
• Unique architectural features
• Risks associated with akiya:
• Limited availability of services and amenities
• Potential for mold and water damage
• Limited resale value
Market trends
The Japanese real estate market is experiencing a period of growth, driven by demographic changes and urbanization. According to a recent report, the number of foreigners buying property in Japan has increased by 20% in the past year. • Drivers of market growth:
• Demographic changes: Japan’s aging population and low birth rate are driving demand for housing. • Urbanization: Cities such as Tokyo and Osaka are experiencing rapid growth, leading to increased demand for housing. • Challenges in the market:
• Shortage of affordable housing: The demand for housing is outpacing supply, leading to higher prices and limited availability. • Limited foreign buyer interest: Despite the growing demand for housing, foreign buyer interest remains limited.
Q&A session
The webinar will feature a Q&A session, where attendees can ask questions and receive answers from the experts. The Q&A session will provide an opportunity for buyers to clarify any doubts and gain a better understanding of the home buying process in Japan.
Speakers
The webinar will feature two experts: Yasuhiro Kitagawa, CEO of Dovetail Inc., and Shinichi Kawamura, CEO of LINC Inc. Both experts have extensive experience in the real estate industry and will provide valuable insights and advice. • Yasuhiro Kitagawa:
• CEO of Dovetail Inc. • Bilingual real estate brokerage services
• Experience in housing support services for foreigners
• Shinichi Kawamura:
• CEO of LINC Inc. • Experience in consulting services for the real estate industry
• MBA from an overseas university
Join the webinar
Join Dovetail Inc. for their webinar on how to buy a home in Japan. The webinar will be held on May 9, 6 p.m. to 7 p.m. (Japan Standard Time). Register now and take the first step towards owning a home in Japan. Join the conversation on social media using the hashtag #buyinghomeinJapan, and get ready to unlock the possibilities of owning a home in this fascinating country.
