Comprehensive Cost Analysis: What to Expect When Purchasing Japanese Property


The Japanese real estate market offers unique opportunities and challenges for investors and homebuyers alike.

This article delves into the myriad costs associated with property transactions beyond the listing price,

helping you to budget effectively and navigate the market with confidence.

Understanding Purchase Costs

When buying property in Japan, costs extend far beyond the advertised price.

These vary based on the property’s location, type, and the transaction’s specifics.

Brokerage Fees: (Shiho-shoshi, 司法書士)

In Japan, brokerage fees for real estate transactions typically consist of 3% of the property’s sale price, an additional fixed fee of 60,000 yen,

and a consumption tax, which is currently at 10%.

These fees are payable to real estate agents (buying agents).


Similarly, when you decide to sell your property through agents, the same fee structure applies.

You will need to pay 3% of the property’s sale price, plus a fixed fee of 60,000 yen,

along with the 10% consumption tax currently applicable.

These fees are payable to your selling agents.

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Understanding Key Clauses in Japanese Real Estate: A Guide for Foreign Investors


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?

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Credit Saison Co., Ltd. has begun offering the “Saison Real Estate Free Loan” , a service that allows users to freely utilize funds within the limit, using their owned real estate as collateral.


Credit Saison Co., Ltd. has begun offering the

“Saison Real Estate Free Loan” from March 31st ,2023,

a service that allows users

to freely utilize funds within the limit,

using their owned real estate as collateral.


It is presumed that among affluent individuals and property owners,

there are those who face challenges and concerns regarding asset management and operation,

such as inheritance measures for business succession, property succession, and real estate operation.

To address the diverse financial needs of affluent individuals, real estate investors (property owners),

and sole proprietors with various challenges, this service has been introduced as a new solution utilizing real estate.

The service leverages the know-how of real estate finance cultivated through various real estate financial services,

including those of the company’s group companies and the expertise of the credit card business.

As a non-bank product unique to the company, it offers “freedom of fund usage,” “extreme-type loans,” “high-value loans,”

and “selectable repayment methods.”


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“au Jibun Bank and SBI Sumishin Net Bank Shake Up the Japanese Home Loan Market: A Borrower’s Guide”


Competitive Landscape in Japan’s

Home Loan Industry

: Unraveling the Impact of

Internet-Only Banks


The Japanese home loan market is witnessing fierce competition, with internet-only banks


such as au Jibun Bank and SBI Sumishin Net Bank leading the charge.



These banks leverage their lower operating costs to offer attractive interest rates


on variable-rate home loans.


Recently, au Jibun Bank expanded its preferential rates, reaching as low as 0.196%


for some customers. Meanwhile, SBI Sumishin Net Bank,


which has a market share of around 5%, reduced its refinancing rate to 0.299%.



Traditional banks are also competing by lowering their expenses through digitization


and offering competitive interest rates.

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(Breaking news) New mortgage loan for the rental investment by a Japanese bank for foreign nationals

Just a quick breakthrough note :
Last week,  we have managed to establish the strategic alliance with one of the prominent Japanese banks who can offer foreign nationals loan for the investment property in Japan.
There are three categories.
1. Foreign nationals who reside in Japan with the permanent  residence
(Individuals who live in Japan without PR could be also eligible)

2. Foreign individuals who reside in Hong Hong (Hong Konger)

3. Foreign nationals who do not live in Japan

Category 2 and 3 are the breakthrough products.
No Japanese banks have been willing to offer the loan for foreign nationals who do not live in Japan but the window has just opened.
Obviously there are certain conditions such as down payment and taking out the mortgage.
And the approval is subject to the valuation of the property by the bank and financial status of each investor.
In addition, you need to carefully select a property which the bank is likely to offer the loan by meeting their criteria.

My bank is very picky about the location.

The property must be in the metropolitan cities where reasonable rental demand can be expected.

These cities are specifically Tokyo 23 wards, Yokohama, Kawasaki, Chiba, Nagoya, Osaka, Kyoto, Kobe and Fukuoka.

The property must be within 10 min walk distance from the nearest train station.

Airbnbs and hotels are excluded (meaning it must be a property to rent or your own house)

Interest rate is attractive enough to create the good cap rate.
Japan’s interest rate is historically low due to the quantitive easing by the central bank.
Anyone who is in interested in such loan, please send us a direct message via
contact us.


Toshihiko Yamamoto
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, “The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage and Sell Real Estate in Japan”is now out on Amazon, iBooks (iTunes, Apple) and Google Play.
About the book Link

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