- Living in Japan for a long time, many foreigners consider buying a house instead of renting.
In this article, we will explain how foreigners can purchase a home in Japan, key points to consider, necessary documents, costs, and the possibility of getting a loan.
Schedule Guide for Real Estate Purchase and Moving in Japan, Suitable for Foreign Nationals
Can Foreigners Buy a House in Japan?
Under Japanese law, foreigners have the same rights as Japanese citizens to buy houses and land.
While some countries restrict foreigners from purchasing property, Japan imposes no such limitations.
This means that even those without permanent residency can buy a house in Japan, and non-residents can also purchase properties for investment purposes.
In June 2021, the “Land Regulation Law” was introduced, which restricts foreigners from buying land in Japan.
However, this law mainly aims to regulate land acquisition by Chinese capital and does not significantly affect the general foreign population looking to buy homes in Japan.
Methods to Search for Properties in Japan as a Foreigner
Finding a house in Japan can be challenging for foreigners who are still learning Japanese or are not proficient in reading and writing Kanji.
However, the basic approach remains the same as for Japanese citizens – using online real estate websites or visiting real estate agents directly.
Searching Online
There are numerous websites for searching properties in Japan, with popular sites like “SUUMO” and “HOMES” offering extensive listings across the country.
For those less comfortable with Japanese, English-language real estate websites are recommended. For instance, “PLAZA HOMES” allows you to search for properties in Japan in English.
Visiting Real Estate Agents
Visiting real estate agents directly is another good approach.
Here, you can discuss your requirements in person, which can be reassuring for those who find online information insufficient.
Sometimes, agents may have listings that are not available online.
However, many staff members at Japanese real estate agencies might not speak English, so it’s advisable for foreigners to look for agencies that cater to English-speaking clients.
For example, “Real Estate Japan” specializes in providing real estate services for foreigners living in Japan.
Documents Required for Foreigners to Buy a House in Japan
Foreign nationals may need different documents compared to Japanese citizens when purchasing a house in Japan. For instance, a Residence Card or Special Permanent Resident Certificate might need to be presented to the real estate agency as required.
The necessary documents vary depending on your residency status. For those without a residency status or not living in Japan, additional documents such as an affidavit might be needed.
In Japan, contracts often require a personal seal or ‘Hanko’. If you don’t already have one, it might be useful to get one made. Although signatures are often acceptable, a Hanko may be essential for certain transactions, such as obtaining a loan.
Costs Associated with Buying a House in Japan
Purchasing a house involves various additional expenses besides the purchase price. It’s important to be aware of these costs when buying a house in Japan.
Firstly, if you use a real estate agency, you will need to pay a brokerage fee. The amount of this fee is legally capped, typically ranging from 3% to 5% of the purchase price.
Taxes associated with the purchase also need to be paid. The main taxes involved when buying a house in Japan include real estate acquisition tax, registration and license tax, and consumption tax.
Registration and license tax is a fee for registering the property purchase with the government.
Additional costs may include fire and earthquake insurance premiums, as well as banking fees and guarantee charges if you opt for a loan.
Can Foreigners Get a Mortgage Loan in Japan?
Many people rely on loans for purchasing homes, as paying in full cash is rare.
Foreign nationals might wonder if they can secure a mortgage loan in Japan.
In short, it is possible for foreigners to get a mortgage loan in Japan. However, the process can be somewhat more challenging compared to Japanese citizens.
For instance, foreigners without permanent residency might find it harder to secure a loan than those who have it.
Nevertheless, even non-permanent residents who have lived in Japan for a long time and are married to a Japanese citizen might be eligible for a loan.
An alternative approach could be to have the Japanese spouse apply for the loan.
Summary
Foreign nationals can purchase properties in Japan, but the process can be more complex compared to Japanese citizens.
Factors such as having permanent residency and the need for a mortgage loan can affect the process significantly.
It’s crucial for foreign buyers to understand the appropriate procedures and requirements based on their specific circumstances.
I’ve written an article about purchasing property in Japan. Currently, I am in the process of buying a second-hand property myself, so I aim to provide helpful insights for those considering a purchase. Please check out my review on buying second-hand properties too.
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