With growing interest in Japanese property among foreigners, it’s common to hear the question: “How should I begin?” This article outlines five key points every non-Japanese buyer should understand before buying. Use these as your first step toward a smooth and trouble-free property purchase in Japan.
1. Real Estate in Japan is Accessible to Foreign Buyers
One of the most important things to know is that in Japan, foreigners can freely purchase property. Regardless of nationality, visa type, or residency status, you can legally buy land or buildings under your own name.
This openness is relatively rare globally and makes Japan an attractive market for international buyers.
However, it’s important to note that buying property in Japan does not grant you a visa or permanent residency.
Property ownership is considered a financial asset, not a right of residence or work.
2. Loans Are Principally Not Available for Non-Residents
In reality, it is quite difficult for foreigners to obtain a home loan in Japan.
Japanese financial institutions are hesitant to provide mortgage financing to foreigners, particularly those without a stable income in Japan or permanent residency.
Therefore, most foreign buyers tend to pay the full purchase price in cash.
Being able to self-fund the entire purchase is a key prerequisite.
3. Ongoing Tax and Management Obligations After Purchase
Purchasing property is not the end.
Post-purchase obligations include fixed asset tax and city planning tax annually.
Condominium owners are also required to pay management fees and repair reserves fund monthly.
For those renting out their property, there are day-to-day tasks like tenant management, maintenance, and contract handling. Overseas owners should arrange a reliable property management company in Japan to handle these issues.
4. Success Relies on Selecting Reliable Real Estate Agent and Judicial Scrivener
Navigating Japan’s real estate process can be complex for foreign buyers due to unique business practices, language barriers, and contract formats.
It is critical to select a real estate agency and judicial scrivener who are experienced with foreign clients and capable of providing service in English, Chinese, or other languages.
Many troubles resulted from mistranslations or insufficient explanations are still common. Selecting partners who not only speak your language but also provide careful, culturally sensitive support from a our perspective is essential for a successful transaction.
5. Prioritize Ease of Ownership Over Short-Term Returns When Selecting a Property
When purchasing real estate in Japan for investment, it is risky to focus on rental yield alone.
In Japan, property value is greatly influenced by factors such as laws, cultural norms, and neighborhood characteristics.
・Proximity to public transport (walking distance to the nearest station)
・Structural age and seismic standards
・Maintenance quality (garbage disposal rules, management association responsiveness)
・Potential for future reconstruction or major repair work
Assessing whether a property is easy to hold long-term is also an important factor. Investors who take a cautious and risk-aware approach, rather than focusing solely on short-term profitability, tend to be valued in the Japanese real estate market.
Summary: Strong Preparation Ensures Confident Ownership
Japan’s real estate market is legally sound and accessible to foreigners.
Still, language barriers, legal differences, and post-purchase management present real challenges for foreign buyers.
Smoother buying process and more secure ownership can be achieved by understanding these key points from the start.
If you’re unsure about how to begin, start with these five points—they’re your first step toward owning real estate in Japan.