Interview with our licensed partner agent: teritoru!
We're so proud to be partnered with one of Japan's premier licensed agencies for English speakers, teritoru. Company CEO, Hioki-san, set aside some time in her schedule to answer a few popular questions from our users.
First of all, who is Teritoru?
Teritoru is a licensed and highly experienced real estate company based in Tokyo, Japan. From revenue-generating buildings to countryside akiya properties, we facilitate transactions across Japan.
Our bilingual team ensures smooth and comfortable communication in English, making the process stress-free for international clients.
Visit our company website: teritoru.com/en/
Why is it important to work with a licensed property broker in Japan?
Wouldn’t you prefer to have an expert on your side?
Japan's real estate market has unique rules and practices that can be challenging to navigate without proper guidance.
A licensed broker will:
- Ensure compliance with Japanese laws, protecting your investment.
- Handle due diligence, ensuring the property is legally sound and free from disputes.
- Facilitate negotiations and contracts with professionalism and local expertise.
- Provide peace of mind by bridging cultural and language barriers.
Can you help me buy a house from start to finish, including support services like mail forwarding or maintenance?
We can assist you throughout the purchasing process, but ongoing support services, such as mail forwarding or property maintenance, are not included in our standard scope of services and may incur additional fees. Please share your requirements for a tailored plan.
What is the process for a foreigner to purchase real estate in Japan?
The process differs depending on whether you plan to visit Japan or complete the purchase remotely. For tailored guidance, we recommend scheduling an online consultation to discuss your specific situation and preferences.
What is the typical time frame from making an offer to closing the deal?
Timelines can vary based on the property and seller's situation. For vacant properties, it is ideal to finalize the contract and settlement within 10 days after making an offer.
Are there legal restrictions or special requirements for foreigners buying real estate?
Japan welcomes foreign buyers with no restrictions on property ownership. You can purchase real estate under the same conditions as Japanese citizens. However, please note that home loans are generally unavailable for non-residents, requiring payment in full.
What additional costs should I prepare for when buying a house?
You should budget an additional 10–15% of the property’s price for initial costs. For inexpensive akiya properties, renovation costs can exceed ¥10 million if extensive work is needed, such as plumbing or interior refurbishments.
Here’s an example of typical fees:
Brokerage Fee:
- For properties over ¥8 million: (Property price × 3% + ¥60,000) + 10% consumption tax
- For properties under ¥8 million: Fixed fee of ¥330,000 (tax included)
Judicial Scrivener Fee:
- Approximately ¥150,000
Stamp Duty:
- ¥20,000
Registration Taxes:
- Ownership Registration (Building): Fixed asset tax valuation × 0.4%
- Ownership Transfer Registration (Land): Fixed asset tax valuation × 2.0%
- Ownership Transfer Registration (Building): Fixed asset tax valuation × 2.0%
Earthquake and Fire Insurance:
- Costs increase for older properties.
Real Estate Acquisition Tax:
- Calculation: Fixed asset tax valuation × 3%
- Payment Timing: A bill is issued approximately 6 to 8 months after the property acquisition.
Fixed Asset Tax / Urban Planning Tax:
- Calculation: Property valuation × 1.4%
- Payment Details: The timing and number of payments vary depending on the municipality.
Renovation Costs:
- Highly variable depending on the property condition.
Can you help with renovations?
Yes, we can assist, but recommendations will depend on the property’s condition and location. Please share your requirements for a detailed consultation.
What financing options are available for foreign buyers?
While most foreigners need to pay in cash, some banks offer limited loan options for Chinese buyers. If you already own property in Japan, you may be eligible for secured loans using your existing property as collateral.
Will I need a Japanese translator or lawyer during the buying process?
No need! Our bilingual staff will handle all aspects of the transaction for you, ensuring seamless communication and documentation. You can leave everything to us.
How can I verify the ownership and legal status of a property?
In Japan, a judicial scrivener confirms ownership at settlement and ensures the transfer of ownership is officially recorded on the same day. You will receive a registration certificate confirming the new ownership details.
Are there restrictions or penalties for selling property within a certain time frame?
Yes, capital gains taxes vary depending on how long you’ve owned the property:
- Short-term (less than 5 years): 39.63%
- Long-term (over 5 years): 20.315%
Selling after holding the property for more than 10 years can significantly reduce your tax liability.
Are there cultural nuances or practices in Japanese real estate transactions?
Japanese sellers often prefer working through licensed brokers rather than direct negotiations. Flexibility and respect for the seller's process are key to successful transactions. Aggressive price negotiations may be frowned upon, so adhering to the listed terms can improve your chances of closing the deal smoothly.
Can I rent out or list my property on Airbnb after purchase?
Yes, but Japan’s zoning laws regulate short-term rentals like Airbnb. Properties must be located in zones where such operations are permitted. We can help you identify suitable properties and provide strategies to maximize your investment, whether through Airbnb or long-term rentals. Schedule a consultation to learn more.
Thank you to Hioki-san for her introduction to teritoru. There is much to navigate when purchasing a property in Japan, which is why a licensed broker is vital for guidance through the process.
If you have any questions you would like discussed in detail, please be sure to send us a message and we will try to get your questions answered. Alternatively, you can book a consultation with teritoru as a subscriber to Akiya Japan. To subscribe, click here.
All listings translated from Japanese and searchable in English. Photos, descriptions, maps, statistics, and floorplans provided where available.