Investing in Japan’s Real Estate Renaissance:
Uncovering Opportunities in Tokyo and Beyond
In the ever-evolving landscape of global real estate investment,
it’s essential to keep a close eye on emerging trends and opportunities.
One such opportunity that has recently come to light is the significant growth
in real estate investment in Japan’s capital region.
Hello, dear readers and investors!
As a real estate agent based in Tokyo, I have the privilege of assisting numerous foreign investors
in navigating the intricacies of the Japanese property market.
Today, I’d like to share some insights on a critical aspect of real estate transactions in Japan
– the extension of settlement dates and loan cancellation dates in sales contracts.
This topic is particularly relevant for those planning to finance their property purchase through a housing loan.
In the realm of real estate transactions, it’s common for buyers to finance their purchases through housing loans. In Japan,
when a buyer opts for a housing loan, a specific clause, known as the housing loan clause (or loan cancellation clause),
is typically included in the sales contract.
This clause provides a safety net for buyers,
allowing them to cancel the contract if they fail to secure loan approval from their financial institution.
Now, let’s consider a scenario where the buyer’s financial arrangements are delayed,
leading to an agreed extension of the settlement date (the payment date) with the seller.
A question that often arises in such situations is – does the extension of the settlement date also imply an extension of the loan cancellation date?
Reviving Japan’s Countryside:
How Foreign Investors are Transforming Vacant Houses
into Opportunities
Are you an overseas investor or foreign national intrigued by the charm and allure of traditional Japanese homes?
If so, there is an exciting opportunity waiting for you.
As the appreciation for traditional Japanese architecture grows,
a promising trend is emerging that not only provides a unique investment opportunity
but also contributes to solving a significant societal issue in Japan – vacant houses.
Foreign buyers are increasingly attracted to these vacant, traditionally styled homes,
often located in the heart of Japan’s beautiful countryside.
Fueled by the rich cultural heritage encapsulated in these properties and a relatively lower cost
due to the weaker yen, this trend provides an opportunity for foreign investors to own a slice of authentic Japanese culture.
Have you ever considered becoming
a digital nomad in Japan?
As the safest country in the world, Japan offers a diverse range
of entertainment options,
an unrivalled food scene and a unique blend of tradition and innovation.
With relatively affordable rent and a world-class healthcare system,
Japan is an increasingly attractive destination for digital nomads looking to
immerse themselves in a new culture and way of life.
Moreover, the Japanese government is actively encouraging
digital nomads and foreign investors
Will permanent residency be
given to foreign workers?
As a real estate agent in Japan targeting foreign investors,
it’s important to keep up-to-date on the latest changes to immigration policy.
On April 24th, the Japanese government proposed a significant expansion of
the “Specified Skilled Worker 2” residency status, which allows skilled foreign workers to work in Japan.
If approved, this would allow for unlimited employment of foreign workers in 12 sectors facing labor shortages.
(View from the property)
Beautiful property with full Mt. Fuji view is now for sale in Fujigane, Fujikawaguchiko-cho,
Minamitsuru-gun, Yamanashi prefecture.
Estate
House 165m2
Resident lot(land) 990m2
Agri land 19800m2 (massive land)
Access
20min to the shopping mall
20min to Kawaguchiko Station/Fuji Q Highland
Rural pastoral town, Expansive views
2hrs to Tokyo – door to door
Business opportunity
You can turn the house into a hotel and get a hotel license.
(*Additional investment is required)
The area receives tens of thousands of foreign tourists every year and it could be
a lucrative business.
View
Mt Fuji views 90% visibility.
360-degree panorama view
Tax matters.
In fact, the most expensive item in our life is not ‘real estate’ but ‘our government’.
And the government is the tax.
So what kinds of taxes are imposed on real estate in Japan?
Real estate-related taxis include personal income tax, corporate tax, fixed-asset tax, city planning tax, real estate acquisition tax, registration tax, stamp duty, and consumption tax
Personal income tax related to real estate is the tax on individuals who gain rental income or capital gain through the sales of real estate.
Corporate tax is a tax on companies that have taxable income. Therefore, their real estate rental income and any profit from a real estate sale have an impact on their total taxable income level.
The corporate tax rate in Japan is currently about 37% (as of July 2019) so if you have a very profitable property, it is wise to hold the title under a corporate name rather than an individual name.
(Naeba ski resort in Niigata)
Sparkling ?
There are many resort condos in Yuzawa in Niigata for sale at a very reasonable price.
I found an interesting article about resort condos and would like to share the summary with you today.
After the burst of the bubble, the residents of the condominiums became elderly.
Yuzawa Town, Niigata Prefecture, the Joetsu Shinkansen entered Ueno in 1985, and the entire Kanetsu Expressway was opened, becoming a tourist destination that attracts 10 million people annually.
You can enjoy skiing and hot springs effortlessly from the Tokyo metropolitan area.
In the bubble economy, 58 resort condominiums were built by 1993 with a total of approximately 15,000 units.
According to real estate information company Tokyo Kantei, there are about 80,000 resort condominiums nationwide.
Yuzawa accounts for close to 20%.
However, the ski boom has gone, and prices have fallen due to oversupply.
About 30 years since the bubble, condominium users have also changed significantly.
According to the town, out of over 8000 townspeople as of April 2016, more than 1000 people registered the current address in apartments.
It accounts for 12% of the townspeople.
Fine-looking market?
TOKYO KANTEI Monthly report June 2019
Remarks:
Source: Tokyo Kantei (June 2019) The market in central districts in Tokyo is starting to show the downtrend.
Red : Market movement (sellers listing price)
Tokyo Kantei (real estate think tank) just announced the latest report on the price movement of the second-hand condominium market.
The price of second-hand apartment buildings in major metropolitan areas continued to fall at ¥ 45.59 million in the 23 wards of Tokyo, down 1.5% from the previous month.
It is thought that this is due to the case share reduction in the central Tokyo area and weakness in the surrounding area.
In addition, Saitama City (-1.7%, 27.74 million yen) and Chiba City (-2.8%, 18.32 million yen) are also negative, and the rate of decline in Chiba City, where the number of cases from old buildings increased, was compared It became huge.
On the other hand, Yokohama City has maintained its upward trend, with + 0.9% at 31.12 million yen.
The average prices of major cities in the Kinki region (Osaka area) rose for three months in a row to 32.84 million yen, which is + 1.1% from
the previous month.
What is the purpose of the mission of the Building Standards Law?
The Building Standards Law （建築基準法）was created for the MLIT to provide basic rules for construction during a building and the stipulates minimum engineering safety requirements concerning fire earthquake and other natural disasters.
It also stipulates the types of buildings we can build according to each zoning district(用途地域)
under the city planning law.
A building not contracted to meet this requirement is regarded as an illegal building however a building previously constructed in compliance with a standard existing at the time of the construction but which no longer meet current construction standards is not considered as an illegal building but rather called non-conforming building. (既存不適格）
*
When you find the cheap property, please make sure if it is a non-conforming building or not. It is not a fatal mistake to buy such a property, but you have to understand what you are running into beforehand.