What are necessary at purchasing properties in Japan?
A copy of your ID is needed to initiate the purchase process. Signature stamp will be asked when doing a tax return process after closing a deal, which would be prepared by our company for you. If you`d like to get a loan, other documents besides it will be needed like those showing details of the property concerned, your annual income and your employment certificate, etc. Please feel free to contact us for more details.
How a purchase price will be decided?
Generally, it is decided after reviewing comparable return rates&prices of other properties having a similar condition in its neighborhoods. The average gross rate of return covers 5-6 %. Even though in a popular/center area of Tokyo, if properties were built before the year 1981 and don`t get tenanted, the return rate would go beyond the average.
What is the difference between the gross rate of return and the actual rate of return?
Gross rate of return is the total rate of return on an investment before the deduction of any costs or expenses whereas actual rate of return is the rate after having costs/expenses deducted including monthly maintenance fee and repair fund.
What are the costs/expenses at purchasing a property besides the purchase price?
Here below is the list.
Ownership title registration fee
City planning tax and Fixed asset tax(prorated)
The above expenses/costs roughly consist of 10% of the total amount of the purchase. If getting a loan, it would need additional fee for the loan process.
Would it be possible to do negotiation on the price?
Yes, and we do necessarily the negotiation process on behalf of you. The price range for negotiation varies by whether to have defaults in the property or be in a hurry by the owner`s side to sell it to get a capital, which would be 10% off if having a good deal by negotiation.
Would it be possible to get a loan from Japanese banks?
In general, Japanese banks don`t do a loan to foreigners who don`t have an address in Japan. However, there have been some cases having a success to get a loan from them by the applicant`s nationality and its holding assets.
Would it be possible to open a bank account in Japan for non-residents in Japan?
It is not possible principally for non-residents in Japan to have a bank account.
Would it be possible to have an English version of documents of contracts?
All of the documents related to contract are in Japanese. We provide non-Japanese speakers with simultaneous interpretation/translation service.
Would it be possible to view inside of properties?
If it is tenanted, it is not possible to visit view inside. For this case, we offer photos of the interior of properties taken before being tenanted. If it is not tenanted/occupied, yes, you can have a view of the inside of the property.
Would it be possible to ask the tenant to evacuate the property?
It is not possible basically as the Japanese laws protect the status of the tenant when it comes to the residential properties unless the tenant agrees to accept an offer by the owner having the costs of move-out and finding a new place for the tenant.
Would it be possible to raise a rent during a contract term?
It would be possible if the tenant accepts it, but in reality it is very difficult to do the negotiation to raise the rent up without having facilities/equipments of the apartment improved. We recommend to list the property with a higher rent after terminating the contract when finding a new tenant, which should meet a market standard range.
Is it necessary to pay a tax for having a property in Japan even for non-residence foreigners?
Yes, it is necessary as far as getting a rental income from the owning properties in Japan. We can be an administrator of your tax payment and give you a good quality of advises/consulting for your smart tax payment.
What are differences between the properties in a new standard and in an old standard for earthquake resistance?
Building Standards Act in Japan was revised in June in 1981, and we call the old Act established before the revision an old standard for earthquake resistance and the new Act after the revision a new standard for the resistance. Generally, properties in an old standard have a higher rate of return than those in a new standard as they have relatively more reasonable purchase price.
What would I do if I want to sell properties in Japan?
We've had a track record of sales performance for 20 years since our company was established. Please feel free to contact us and we will make sincere exertion to meet your requirements throughout our network.
Would it be possible to search for properties to live ourselves, not for an investment?
Yes, and our experienced consultants will contact you to get your criteria for finding a right property for you.
What would I do for establishing a legal entity in Japan?
With an office in Japan and an asset, for example electrons, it`d be possible to set up a legal entity in Japan. Please feel free to contact us for more details.