The process of buying real estate in Japan

The steps for investing in Japanese real estate are as follows.

1. Understand information and make plans

The types of Japanese houses that can be purchased will vary depending on your own funds and personal attributes (annual income, work location, etc.) . How much money you plan to use, whether you need to borrow money from a financial institution, etc., you need to have a plan that suits you.

2. Find Japanese real estate that suits you

There are many Japanese real estate portals online, and investors can certainly search. However, this information is time-sensitive, and the house you are satisfied with may not still be for sale, so you need to confirm it specifically. Or communicate your needs with the Japanese real estate agent and receive new housing information as soon as possible. No matter what the house looks like, you need to arrange it through the developer or real estate agent to view the house. If you cannot go to Japan to view the house in person, you can also entrust an agency to show the condition of the house by taking videos and photos.

3. Submit a house purchase application

It is recommended to prepare the required notarial certificates in advance, including basic information such as name, domestic address, personal seal, etc. After clarifying your purchase budget and criteria, if you find a suitable house, you can immediately ask a Japanese real estate agent to assist you in submitting a home purchase application.

If there are multiple buyers applying to purchase an item, the seller will choose a final buyer among them. How do you decide who to sell to? Generally, it is easier for such people to get priority: those who submit purchase applications early, those with high purchase expectations, and cash buyers.

4. Accept loan review

If the amount of property purchased is relatively large and you want to use a loan to purchase the property, you need to accept loan review. For foreigners who do not have Japanese identity and do not have any credit accumulation, it is more difficult to get a loan in Japan in their own name. If such foreigners want to get a loan to buy a house in Japan, they can register a company in Japan. In the name of the Japanese company, they can successfully apply for a loan. In fact, based on past experience, using loans to leverage can not only achieve rent-to-support loans, but also obtain good returns.

5. Sign the sales contract

After accepting the explanation of important matters arranged by the Japanese real estate agent, the seller and the buyer reach an agreement and sign the sales contract (ownership transfer). It is necessary to confirm whether the deposit settlement and daily rent settlement are correct.

6. Select a real estate management company

If you need to entrust the management of the property later, you need to select a management company. There are cases where the management company is taken over from the seller, and there are cases where a new management company is found. Even if you choose self-management, it is necessary to find a rental agency that can recruit tenants in advance.

7. Settlement and transfer

The so-called settlement refers to payment and completion of the transaction, that is, the buyer pays the transaction price to the seller. After that, the property is delivered (the seller hands over to the buyer the documents related to the house, the warranty for the attached equipment, etc.), and the transaction of buying and selling the house is completed. From signing the contract for purchasing a house to obtaining the real estate certificate, the process can be completed in about a month at the fastest.