Procedures for Buying a House in Japan｜What are the procedures for buying a house in Japan? What are the conditions for buying a house in Japan? How to buy a house in Japan?

In recent news, we often see Taiwanese entertainers and internet celebrities buying properties in Japan, but in fact, not only entertainers, but also Japanese mortgage interest rates and the yen exchange rate have continued to fall in recent years. More and more investors are seeing the possibility of buying and investing in houses in Japan! What should I look out for when buying a house in Japan? What are the eligibility restrictions and conditions? This time, we would like to guide our readers through the process and precautions of buying a house in Japan!

The Process of Buying a House in Japan

step 1. Find a reliable housing agent

Like Taiwan, Japan also has a real estate (housing) brokerage industry, which mediates through intermediaries and handles the process of buying and selling houses, which is basically similar in nature to housing brokerage in Taiwan. Therefore, if you do not have relatives or friends in Japan, you will not be able to speak the language to buy a house in Japan, and there are many taxes and fees associated with real estate ownership, so it is recommended to look directly for a trusted, Chinese and English-speaking housing broker to protect the safety of your home purchase and prevent the risk of fraud!

step 2. Select an object

If you want to buy a house in Japan, you can negotiate with a broker online or browse the property online. Many people go directly to Japan and are guided by a broker to tour the house. You can actually go there and understand more about the lighting, surrounding environment, and home safety.

step 3. Apply for a home purchase

After selecting the right property, the brokerage company will provide you with a Purchase Application Form, fill out the application form to finalize your purchase desire, and then the brokerage company and the seller will discuss the terms of sale!

step 4. Prepare the materials

When buying a home, it is essential to prepare contract documents and expenses, and choose the right payment method! I will organize the documents and materials required for the contract for all readers who need it:

• Passport
• Deposit: Buyer should pay 10% of the item price as deposit
• Fees: Half of the security deposit will be a housing agent’s fee
• Stamp duty: When concluding a sales contract, stamp duty is paid by affixing a stamp to the contract according to the sales amount (stamp duty is exempt if you sign a contract in Taiwan, but stamp duty is charged if you sign a contract in Japan)

step 5. Conclude a contract

After the negotiation is reached, both the seller and the seller sign and seal, at this stage, the buyer must come to Japan and sign the contract, or the Japanese real estate broker must come to Taiwan and sign the contract. If you really can’t meet, ask the Japanese broker to represent the buyer and sign the contract with the seller in Japan, and the Taiwanese buyer can further check the progress and situation on TV.

In addition, the buyer must also pay a deposit at this stage, and once the deposit is paid, the real estate sales contract is concluded!

step 6. Settlement balance, house delivery and name change

After the contract is signed, the buyer immediately obtains the original copy of the contract, relevant documents and payment notice, the buyer completes the payment by the specified date, and continues to register the change of ownership registration procedures. You can officially complete the process of obtaining the keys and handing over the house!

What are the conditions for buying a house in Japan? What documents do foreigners need to prepare to buy a house in Japan?

Looking at it this way, the home buying process in Japan is almost the same as in Taiwan! So, readers who are new to Japanese real estate may be wondering if there are any eligibility restrictions for purchasing a home in Japan.

In fact, the conditions for purchasing real estate in Japan are relatively loose and free. You can buy and sell real estate in Japan regardless of your nationality when buying a house or buying or selling land.

However, the documents that non-Japanese need to prepare when purchasing a house in Japan are relatively complicated, and a preliminary inventory includes the following:

• Front and back color photo of ID card
• Color passport photo
• 1 copy of family register manuscript
• Cut Knot Book
• Seal certificate

💡 [Room sense small thoughts]
When buying a house in Japan, look for a translation company to translate the family register copy and seal certificate you paid into a Japanese translation book, go to a court, a private notary unit, or the Ministry of Foreign Affairs for certification, and then use it in Japan. You can use it!

 How can foreigners buy a home loan in Japan? We will introduce the flow of home loans in Japan!

If you like Japan’s low interest rates and want to purchase Japanese real estate, the loan barrier is a relatively difficult one. Currently, many Japanese banks do not make open banking loans to foreigners who do not reside in Japan, so you have to make loans to Taiwanese banks that have branches or subsidiaries in Japan. For example, there are Bank of Taiwan, Daiichi Bank, Megabank, and China Trust in Tokyo, and mainland banks such as Megabank and China Trust in Osaka!

💡 Mortgage rates for buying a home in Japan are almost the same as in Taiwan, with mortgage rates falling to a range of about 2.2% to 2.7% in 2024!

However, be aware that there are conditions when applying for a loan, such as:

• Housing Age Within 20 years
• The winning bid price of a house is 35 million yen or more.
• The loan ratio is about 50% to 70% of the transaction price
• Mainly 15-25 years of principal and interest repayment
• No grace period
• Must have an annual income of NT $1 million or more
• The purchased area is 50 square meters or more (approximately 15.12 tsubo)

Frequently asked questions/precautions about buying a house in Japan!

Q1. Japan has low mortgage interest rates, so is it a good deal to buy a house?

Mortgage rates in Japan are generally lower than those in Taiwan, but this is limited to Japanese banks and Japanese people. Taiwanese people who do not have permanent residence permits still have to enter a Taiwanese bank to take out a loan to buy real estate, so they do not necessarily enjoy low interest rates.

💡 Those who are interested in building real estate in Japan can compare and evaluate them carefully!

Q2. There are many earthquakes in Japan. How do I get guaranteed housing?

In order to protect buyers, all information about Japanese housing is actually public and transparent, and can be searched online!

Investigating the potential effects of earthquakes, soil liquefaction and flooding 💡: Housing Security Institute
💡 I would like to find out if there has been an accident in and around this property: Teru Oshima Oshima property announcement website

Q3. Which areas do you recommend to buy a house in Japan?

If you have no intention of settling in Japan, it is advisable to consider looking for areas that are easy to rent in Japan, focusing on whether there are people who will rent here and who you can sell to later! However, even if you see something that catches your eye while traveling to Yukimi in Hokkaido or Shujima in Okinawa and want to get it for your future trip, it’s actually not a good deal and it’s a better choice to stay in a hotel. is.

Where are the essence areas that are easy to rent? I first suggest narrowing down the area within a few minutes’ walk from local stations, restaurants, drugstores and other living functions, focusing on the top three regions in Japan with GDP per capita, such as Tokyo and Osaka.

Q4. If you want to rent a house after buying it, how should you manage it?

After purchasing Japanese real estate, in addition to their own homes, many investors choose to rent the property and receive rent. Unlike Taiwanese homeowners who often manage their rental homes themselves, it is quite common in Japan to entrust the management of their rental homes to a rental management company!

If you are planning to rent a property, pay attention to the types of lease agreements in Japan! Rental contracts in Japan are divided into regular contracts and fixed-term contracts.

• At the expiration of the normal contract, the tenant has the right to renew the contract, and the landlord must not request the tenant to return the rent without permission.
• A fixed-term contract is when the tenant has to move out according to the contract when the contract expires.

From this, if you intend to recover the real estate you live in Japan in the future, it is recommended to adopt a fixed-term contract and sign with a tenant! However, if you sign a fixed-term contract, the rental income will be lower compared to a regular contract, so you must think carefully before arranging a rental!

Q5. Is it profitable to buy and sell a house in Japan?

Many people invest in Japanese real estate not only for rental income, but also for capital gains! However, capital gains tax must be paid when selling Japanese real estate, and the tax rate for selling Japanese real estate in the name of an individual in Taiwan is 5-40%, while the tax rate for selling Japanese real estate in the name of a Taiwanese corporation is 26%, 15. 15%-30. 63% for an individual sale in Japan, and 30-35% for a Japanese corporation. What you must be especially careful about is that you must pay the minimum tax burden system and business income tax after you return to Taiwan! Therefore, if readers are willing to invest in Japanese real estate, they can calculate and evaluate the tax burden themselves!

Japan’s housing sales tax burden is a lazy bag!

Costs of Buying a House in Japan In the article, we have already organized for our readers the costs that must be paid at the initial stage of buying a house in Japan and at the time of ownership. This mainly organizes all the tax burdens you come into contact with when buying and selling a house in Japan!