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.
TOKYO KANTEI Monthly report June 2019
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.
Are you interested in Akiya ?
We receive an inquiry almost everyday about akiya investment.
They are mainly from western countries such as US, Canada and Australia.
Almost everyone just wants to buy a cheap akiya house for their financial benefit.
But akiya investment is not easy.
The stickiest issue is the renovation cost.
It could be very significant and a way more than the value of the houses.
We don’t search akiya for free.
If you want to buy akiya, you need to hire me on a fee basis
otherwise please contact other agents who can handle akiya on a commission basis.
(but I do not think there is any)
You need to understand how the Japanese system works and the traps and
challenges that exist.
Akiya (unused house) is cheap for a reason !
Please watch my YouTube video for more details.
Are you curious about the mortgage loan in Japan ?
Few individuals have enough savings or liquid funds to enable them to purchase property outright.
It is normal for home purchases to be funded by a mortgage loan.
A mortgage loan is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds
for any purpose, while putting a lien on the property being mortgaged.
The home mortgage loan is widely available in Japan, too.
The best referral source for obtaining a foreign national mortgage loan is a local real estate broker that works in Japan.
New listing in Japan’s old imperial capital !
The Kyoto district best known for its geishas, Shinto shrines, and teahouses.
I have visited beautifully renovated KYOTO Machiya house.
You will love it.
What’s notable in the Kyoto’s real estate scene is how old and new mix seamlessly.
And the key word in Kyoto is subtlety.
(Niseko ski resort, Hokkaido)
Long-lasting growth ?
The Japanese government recently issued a report on the average land price in Japan.
It is announced every year and surveys 26,000 spots all over Japan.
Today I am sharing some key findings and forecast for the future.
Overall, the national average price for commercial land increased 2.8 percent and that of residential land edged up 0.6 percent.
The average price of all types of land in Japan’s regional areas (namely local areas) rose for the first time since 1992 last year
due to the influx of foreign tourists.
We have recently launched our own YouTube Channel.
It is called ‘Japan Real Estate Investment for Foreign Investors’
The channel will post various useful information and property information for foreign people.
We hope you enjoy our videos.
If you have a question or topics you want us to pick, please let us know.
YouTube link ↓
Japan Real Estate Investment for Foreign Investors
Real estate investing consultant and author.
Founder of Yamamoto Property Advisory in Tokyo.
International property Investment consultant and licensed
real estate broker (Japan).
He serves the foreign companies and individuals to buy and sell
the real estates in Japan as well as own homes.
He holds a Bachelor’s degree in Economics from
Osaka Prefecture University in Japan
and an MBA from Bond University in Australia
Toshihiko’s book, “is now out on Amazon, iBooks (iTunes, Apple) and Google Play.
About the book
Now, the real truth about the real estate market in Japan !
I am often asked about the trend of the real estate market in Japan.
The most common question is
“Is it going to come off after Tokyo Olympics in 2020 ?”
What do you think ?
It is always difficult to predict how the market will behave but we can always make some analysis.
There are a few perspectives we should focus when analyzing the market.
First, let us walk through the recent high level market trend.
Average land prices in Japan rose from a year earlier for the first time in 27 years in 2018, fueled by the increasing foreign tourists and by urban areas where redevelopment projects are ongoing.
For example, the number of foreigners who stayed overnight in Kyoto in 2017 totaled 3.53 million, a record high.
The national average of benchmark land prices as of July 1 (in 2018) rose 0.1 percent from a year earlier.
The national average of commercial land prices was stronger than the residential segments and it went up
by 1.1 percent.
Happy new year 2019 ! Year of Boar.
New year has just begun and I would like to quickly review the market using some statistics.
The data always tells you the fact. How to read the data is a key for success.
It is too early to know if housing is in another bubble in Japan (I don’t think so)
It will depend on what happens with the global economy. Unfortunately, bubbles are only recognized with 100 percent certainty
in 20/20 hindsight.
The national average standard price of land
According to the government announcement, the national average standard price of land (基準地価) published in September 2018
by the Ministry of Land, Infrastructure and Transport, land lots for all uses excluding forest lands nationwide
went up by 0.1% compared with the previous year, rising for the first time in 27
years since 1991. The average rate of residential areas was down 0.3% nationwide, falling for 27
consecutive years, but the rate of declines shrank 0.3% from the previous yearRead more
Interested in high-performance Akiya (空き家, unused house or abandoned house) investment in Japan ?
Here are what you should know. If you are considering buying a akiya house, you need to know the basic knowledge of akiya investment.
There are lots of things you should know about before ever considering purchasing akiya property.
It is in your best interest to educate yourself about akiya to avoid getting into a situation that you regret.
Buying akiya can be quite useful and comfortable, but only if they are properly searched and if you share the same goals with your agent.Some investors find out akiya investment where they have purchased is not what they expected. In many cases, you’ll be disappointed to find out that the renovation cost of akiya is very expensive. There are a few options in akiya investment.But before I get into details, I want to warn you that I can’t teach you how to get rich overnight by akiya investment or find you a dream
akiya house for free near the ocean in Tokyo area. Unfortunately no house is free in Japan.