Investing in Japanese Real Estate

Real Estate Investment Support Services for Foreigners in Japan — By Real Estate Japan Inc.

Real Estate Japan Inc. is Japan’s leading multilingual property portal. We work with the top agents in Tokyo and around Japan to connect investors, buyers, sellers, and renters.

Through our real estate investment support services, we connect and provide support to international and domestic investors to select, leading local agents. Our goal is to help you achieve your real estate investment objectives by minimizing the cultural and language barriers to investing in Japan.

Investing in Japanese real estate as a resident foreigner

Tokyo, Osaka, and Fukuoka — Japan’s three leading real estate markets — offer some of the world’s leading cap rates, and Japanese banks continue to offer historically low mortgage interest rates. This combined with a stable political, economic and legal framework make Japanese residential real estate  one of the most interesting and potentially high-yielding opportunities available to investors today.

Low-money down, preferential treatment for Permanent Residents

If you have been living and working in Japan, you are likely already aware of the various benefits of Permanent Residency (PR) status. For long-term wealth building, one of the key benefits is the preferential treatment you can receive for obtaining a property investment loan from a Japanese bank. Having Permanent Residency-status can significantly improve your financing terms and return on investment, compared to the terms available for the same investment done with a working visa-status.

Sample Investment Scenario

Comparison of sample investment scenarios and returns for Permanent Residence-status holders versus investors holding a working visa. Please note that this is a sample simulation and actual financing conditions and terms offered at the time of your application may vary. We see some signs that banks may be stricter with financing options starting in the summer and fall of 2019. Image: LINC. Inc. and Real Estate Japan Inc. (c) 2019

In a scenario where a working visa-holder applies for a loan to buy a single-unit property with a price of ¥10 million, a Japanese bank will typically require a down payment of ¥3 million. The unit can then be leased out for estimated annual cash flow of ¥330,000 for cash-on-cash return of 11%.

A Permanent Residency-holder applying for financing for an even more expensive property (a ¥15 million single-unit apartment) will typically only be required to put down ¥200,000. Estimated annual cash flow in this case is ¥200,000, which means cash-on-cash return of 100%.

How can Real Estate Japan help you reach your objectives?

Real Estate Japan offers free, no-obligation introductions to our partner agencies. We also provide language and cultural support so that you can effectively communicate with your agent.

Our partner agents have experience working with investors of all levels, from beginning to advanced and can provide consultation on the entire investment process, as well as, of course, helping you find, negotiate, and close on your investment. Here are just a few of the things that our partner agents can assist with:

  • Understanding real estate market trends, including the October 2019 consumption tax increase and Tokyo 2020 Olympics
  • What to look for in an investment property
  • Which neighborhoods should you invest in?
  • Whole building versus single-unit investment
  • Financing options based on your visa status
  • Tax benefits and tax deductions
  • How to negotiate the purchase price
  • Property information from REINS (the Japanese version of the Multiple Listing Service)
  • Consulting with banks to find out how much you can borrow.
  • Provide Income/Expenditure spreadsheets for properties you are interested in, including costs involved in finding tenants.
  • Introduce off-market properties
  • And much more

Yasuhiro Kitagawa, General Manager, Real Estate Japan Inc.

Yasuhiro Kitagawa, General Manager, Real Estate Japan Inc.

Yasuhiro has been with Real Estate Japan Inc. for six years, the last four as General Manager. He studied and worked in the U.S. for over ten years before returning to Japan to work in the Japanese real estate industry. He is passionate about improving transparency and access to the Japanese real estate market for Japanese and foreigners alike. Yasuhiro is head of Real Estate Japan Inc.’s investment support services for foreigners.

Contact Us

 

For more information, please fill in the form below. We look forward to hearing from you!

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