How to Buy Property in Japan: A Guide for Foreign Buyers

1. Use AkiyaMart to Find Your Property

First things first; finding the right property. One of the best tools for this is a site called AkiyaMart. It's a user-friendly platform that lets you browse vacant homes and reasonably priced properties across Japan. Whether you're looking for a rural retreat or a place in the city, AkiyaMart has a wide range of options. It's easy to use and completely in English. If you're serious about buying property in Japan, start by checking out AkiyaMart.

2. Work with a Real Estate Agent Who "Gets" Foreign Buyers

Finding the right property is just the first step. Next, you'll need to work with a real estate agent to handle the purchase. And as a foreign buyer, you likely run into language barriers or cultural differences along the way. That's why it's important to choose a real estate agent like us who have experience in Japanese real estate as well as working with foreign clients. Look for agencies with staff who can speak English or your preferred language. This will help you avoid misunderstandings and make the whole process smoother.

3. Hire a Judicial Scrivener Who Speaks Your Language

When buying property in Japan, registering the title to your new property is a must. This legal process is handled by a professional called a Judicial Scrivener. Since this involves a lot of paperwork and legal details, you'll want to make sure your Judicial Scrivener speaks your language and can explain things clearly. It's crucial to avoid miscommunication during this step, as mistakes can lead to problems down the road. Make sure the person handling this process can communicate directly with you in English or another language you're comfortable with. We work with an English fluent Judicial Scrivener and can introduce this service for you and guide you along the entire process.

4. What Costs Are Involved in Buying Property?

Buying property in Japan involves more than just the sale price. Here’s a breakdown of some additional costs you should be aware of:

• Agent Fees: If you go through a real estate agent, expect to pay a commission. This is typically around 3% of the property price plus 60,000 (about $400) before tax.
• Registration Fees: You'll need to pay for the legal registration of your property. This includes the Judicial Scrivener's fee and registration taxes.
• Stamp Duty: This is a tax paid when you sign the purchase contract, and the amount depends on the property’s value.
• Real Estate Accquisition: This is a one-time tax you pay after purchasing the property, typically around 3-4% of the property's assessed value.
• Loan Fees (if applicable): If you’re using a mortgage, the bank will charge you fees for setting up the loan, as well as other related expenses.

5. Taxes You Will Pay After Purchasing

Once you've bought the property, here are the tax payments to be aware of:

• Fixed Asset Tax: This is an annual tax on your property, based on its assessed value. It’s paid by the person who owns the property as of January 1st each year.
• City Planning Tax: If your property is within a city planning area, you’ll also be charged this tax. It’s often billed together with the fixed asset tax.

These taxes depend on the location and value of the property, so it’s important to factor them into your long-term budget when buying in Japan.

Summary

Buying property in Japan might seem tricky at first, but with the right approach, it’s totally doable. Use AkiyaMart to find great properties, and make sure to work with a real estate agent like us and a Judicial Scrivener who can communicate clearly with you. Understanding the costs and taxes involved will also help you avoid surprises. With proper preparation, you’ll be enjoying your new home in Japan in no time!