Buying a home in Japan

Japan, Inc., Wntr, 2006 by Willhemina Wahlin, Liz Chee

Are you thinking of buying a home in Japan, but don't know where to start? J@panInc., over the course of the last few months, has been testing the waters and thanks largely to publisher Terrie Lloyd's exploits at finding a property himself, we've put together this guide to some of the best kept secrets to snapping up a real estate bargain.

Firstly, we'll take you through the basics: what's out there, who can sell it to you and who will lend you the money, as well as the all-important list of must-haves to help you through the paperwork. And if you're looking for inspiration, we have showcased three beautifully designed homes sure to give you an appetite for construction!

Lastly, Liz Chee will give a run down on the Yen Loans Seminar recently hosted by J@panInc. It was a huge success and provided much needed information to those wishing to buy-so much so we are organizing another event soon. Drop Liz a line if you are raring to go by the end of these pages. The last seminar was full, and places for the next one are filling fast! So, without further ado, welcome to J@panInc's guide to BUYING A HOME IN JAPAN.

Buying a property in Japan: Japan Inc. takes the guesswork out, so that you can move in.

Let's face it: renting is just dead money-at least, for a tenant. And while that may be fine if you are a transient international, what happens if you end up staying where you were once merely visiting? An increasing number of foreign residents are showing an interest in buying property in Japan, some because they have ended up marrying here and want to settle down, others because they see it as just a plain good investment. And while you may have thought the overly active earth beneath you is reason enough not to buy in this earthquake-prone land, consider this: Japan has one of the lowest housing interest rates in the world, and the market has most definitely bottomed out.

In truth, there are many options available to foreign permanent and, surprisingly, non-permanent residents. "Despite beliefs to the contrary," writes Mark Schreiber in a "Zeitgeist" column in the Japan Times, "you don't need permanent resident status to buy, or even obtain a loan-although it helps. In fact, as long as you can come up with the funds, there's nothing stopping you from buying property in Japan on a short-term visitor's visa."

You may be considering the easier option of a new mansion, or buying a piece of land and crafting the home of your dreams. Or you may even take the road less travelled and bid on a keibai bukken, a seized property from bankrupt individuals or companies.

Of course, there are pitfalls and advantages to every option available. For instance, mansions are relatively easy to come by, but lose their value dramatically within the first year. Some buildings have extortionate maintenance fees as well, so you may be in for regular costs far exceeding your current rent. On the other hand, having someone to maintain your property can save you a lot of headaches, and mansions are usually a pretty good buy.

Pre-fabricated houses are relatively common and easy to come by, but as is often the case, if their materials are inferior, they can lose value. In this case you would really have to have land that increases in value to make your investment worthwhile. Older houses can be wonderful, and most houses come well documented, so you have some idea of what has transpired with the house in the past. It seems, though, that designing and building your own property, while more time consuming and more expensive, has proven the most satisfying--and most people who have elected this option have seen their properties increase in value nicely. This is mainly because they are beautiful, unique and built very well, not to mention generally on bigger pieces of land.

Once you decide what kind of property you are after, and of course what price range you are looking at, it is then time to decide three things: the location, realtor and lending institution that is best for you.

The Real Estate Game

When looking for a realtor, the most important thing is knowing what you want, and then giving yourself plenty of time to find it. There are two main options when you start looking-you can drop in to one or you can search the net. If you know someone who has bought a property in the area you wish to live in, ask about their experience. First-hand knowledge can be very helpful.

If you decide to drop in on a realtor's office, first take a look at the area you want to live in. A spin on a bicycle will be enough to get you started, and will give you a better mental picture when you start wading through books of floor plans in the realtor's office. Japan is populated by a vast number of realtors, typically clustered around the side and back streets of every train station. Try to take a Japanese friend with you, or the realtor may duck for cover at the sight of you!

Searching the Internet can be either really frustrating or really useful, depending on the site. Most are only in Japanese with few pictures, so go for the ones listed below, which have lots of pictures, are easy to navigate and some even have an English-language option. Some of the best sites our publisher and his wife found were Yamate Homes, Plaza Homes, Mitsui Fudosan, Sumitomo Fudosan, and Realty Infomedia.