Investing in Japanese Real Estate with Low Money Down: How to Get the Best Financing Terms

Real Estate Japan Inc. and LINC Inc. are pleased to present this brand new series of investment seminars for foreigners interested in taking the first step in Japanese real estate investment.

Low-money down, preferential treatment for Permanent Residents

If you have been living and working in Japan, you may already be 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 Scenario

For example, 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%.

In this series, we will be presenting practical information about the market, purchase process, how to get started with low money down, and much more, in clear and simple terms.

We will be discussing the following topics and more:

• How your residency status can significantly change the financing terms that Japanese banks will offer
• Getting mid-risk, mid-level returns by targeting properties with specific criteria that have proven to perform.
• Three big macro-economic and policy shifts that will cause the more properties to come online after 2020.
• Historic price data and price projections showing how residential property prices are on a declining trend and what to do about it.
• Upcoming changes to the earthquake-resistance building code and how this might affect your choice of property.
• As an owner, why you should use a guarantor company to manage tenant-related risks
• The importance of actually viewing a property (even when you can’t enter the property) and what to look for.
• Which banks lend to non-Japanese borrowers in Japan.
• And much more

Private consultations are available by appointment

For a private consultation, please indicate in the form below a few dates and times when you would be available for a meeting following the seminar.

LINC is able to offer highly personalized consultation, including:

• Property information from REINS (the Japanese version of the Multiple Listing Service) as well as additional information from local agents.
• 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.

Who is this seminar meant for?

This seminar is designed for foreign residents of Japan who are new to Japanese real estate investment.

This is a unique opportunity to get objective information about investing in single-unit properties in the Tokyo metropolitan area. Seats are limited, so please register below!

Real Estate Japan Inc. staff will be providing English-Japanese interpretation for speakers and attendees.

The seminar will be held in the meeting rooms at Real Estate Japan Inc., which shares offices with GPlus Media Inc. We are located on the 4th floor of the IS Building in Higashi Azabu.

This seminar is brought to you by Real Estate Japan Inc. and LINC Inc.