Tax

Avoid Costly Mistakes: Understanding the Key Differences Between Residential (for living) and Investment Properties in Japan

by

 

Understanding the Differences in Choosing Residential (for living)

vs. Investment Properties in Japan: A Guide to Successful Real Estate Decisions

Overview:

This article delves into the differences in approach when selecting residential (for living) and investment properties in Japan’s real estate market.

It covers crucial aspects such as bank loan conditions, taxes, methods of gathering property information,

the various types of investment properties and their market characteristics, how to choose the right real estate agency, and exit strategies.

By addressing these topics, the article provides specific steps and tips for making successful property choices, regardless of the buyer’s goals.

 

Differences in Purpose and Selection Criteria:

For residential properties(for living), the primary focus is on ensuring comfort and convenience for yourself and your family.

Factors such as location, environment, and proximity to essential amenities are prioritized.

In contrast, investment properties prioritize profitability, with the main criteria being the future potential of the area, rental market trends,

and the resale value of the property.

Investors do not live in these properties, so they must make objective, rational decisions as investors.

Read more

Bridging the Language Gap: How Yamamoto Property Advisory Ensures Clarity in Japanese Real Estate Contracts

by

For Foreigners: The Importance of Japanese Contracts and How to Explain Them？

 

Pros and Cons of Conducting Real Estate Transactions for Foreign Clients Using Contracts Translated

into Foreign Languages

 

We found a very interesting article on the Real Estate Transaction Promotion Center’s (公益財団法人　不動産流通推進センター）website.

In this article, we will share the content and inform you of our company’s approach to this issue.

 

Background and Key Figures

The background of the article is based on a consultation with a real estate company (Not Yamamoto Property Advisory)

that is not experienced in handling foreign clients.

As real estate transactions with foreign clients increase, said brokerage firm, specializing in sales and rentals, faces the challenge of preparing transaction documents

in foreign languages and arranging interpreters.

 

Read more

Comprehensive Cost Analysis: What to Expect When Purchasing Japanese Property

by

Introduction

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 Commission (仲介手数料）: 

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(commission) are payable to real estate agents (buying agents or listing 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.

Read more

Tokyo Shines as Second Wealthiest City in the World, Despite Fewer Billionaires

by

 

 

Understanding the wealth distribution across the globe

 

can offer invaluable insights into potential opportunities

 

and trends in the real estate market.

 

That’s why today, we’re turning our spotlight on a recent report by Henley & Partners, a British consulting firm,

 

which ranks cities based on their millionaire populations.

 

Particularly interesting for us is the position of Tokyo, Japan’s bustling capital, in this global landscape.

 

As we unpack these insights, we’ll consider what this means for real estate investment in Japan,

 

and how these trends might shape our strategies moving forward.

Read more

Redefining Investment Strategies: Why Japan’s Real Estate Market is the Next Big Opportunity for Chinese Investors

by

 

Are you an investor exploring alternative

real estate investment opportunities in Asia?

 

 

The recent changes in Singapore’s property tax regulations may prompt you to look elsewhere

 

for promising investments.

 

As a Japanese real estate agent specializing in assisting foreign investors,

 

I’m here to help you navigate this changing landscape and

 

discover the potential of Japan’s real estate market.

 

Read more

Navigating Withholding Obligations for Foreign Investors: A Comprehensive Guide for Buyers and Landlords

by

 

Tax implications: When a non-resident sells

or rents out real estate in Japan

OLYMPUS DIGITAL CAMERA

 

 

(Case study)

 

In Japan, taxes are levied on residents (referred to as “residents”) regardless of nationality.

 

In this case, the income subject to taxation includes not only income generated within Japan

 

but also income from around the world.

Read more

Japanese real estate essentials: What kinds of taxes are imposed on real estate in Japan? 

by

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.

Read more

Japanese real estate essentials: What kind of laws do you need to understand before you buy a property in Japan ?

by

Here is  how it works : Japanese real estate essentials.

What kind of laws are protecting rights of your real estate in Japan ?

The civil law describes the general rules for the purchase and sales (and lease) of the property.

The civil law regulates ownership and superficies and also provide the definition of rights such as pledge and mortgage.

As a conventional individual, I think you only need to know how the mortgage works in Japan.

The land lease and building lease law, which is special law of civil law, provides

the general rules of land lease and building lease.

The act on sectional ownership of buildings provides the general rules on sectional ownership, meaning

the law is for the condominiums.

The real estate registration law is for the real estate registration system.

Read more

YouTube clip : Capital gain tax in Japan

by

When you buy a property and sell it in profit in the future, you are liable to

the capital gain tax of the Japanese government whether you are in

Japan or overseas country.

How does it work ?

How much is tax ?

Please find out more details in my video below.

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 
Amazon.com Link

 

 

How the investment in a local city works ? : Opportunity to invest in center of Sapporo residential building. No down payment is needed

by


(Night life Susukino in Sapporo)　　　　　　（Odoori koen)
No down payment is needed.
Remarkable opportunity in Sapporo is up for sale in Sapporo.
One of my business partners has come across a pretty good property in Sapporo in northern Japan.We don’t usually deal with a property in Sapporo.
However, as the project already has passed the provisional review by a premier Japanese bank, I am introducing it on his behalf.
Let’s find out how viable it is.
Oh, by the way, If you seek investment that can expect the appreciation of 20% over next 3 years,
Japan is not your destination. Please go and find a property in countries like Thailand or Vietnam.

Read more