An Easy Guide To Buying A House in Japan: 6 Tips To Know

Whether a resident or a foreigner, these tips and insights when buying a house in Japan will help you have a smoother experience in the Japanese real estate market.

How to buy a house in Japan: step-by-step

Here is the general step-by-step process for buying a house in Japan.

Step-by-step guide to buying a house in Japan

1. Inquiry: Using an akiya bank lets you view all the akiyas available in Japan.

2. Property viewing: Once you find one or two properties you are interested in, you’ll meet with a real estate agent to schedule a viewing.

3. Purchase application: You and your agent will submit a Letter of Intent (LOI) for the properties you want to purchase.

4. Contract Signing: If your LOI is accepted, a contract is created outlining the terms, deposits, and fees.

5. Closing: After finalizing the payment, you must register the property transfer to the local Legal Affairs Bureau.

If you would like more details, check out this guide here: How To Buy A House In Japan As A Foreigner Living Abroad

6 tips for buying a house in Japan

Let’s take a look at different tips when it comes to buying a house in Japan.

1. Understand the legal requirements.

If you are a foreigner looking to buy a house in Japan, you do not need a visa or a specific residency status.

However, all property purchases must be reported to the local Legal Affairs Bureau. So a judicial scrivener, real estate agent, or lawyer can best guide you through this legal process.

Required documents to buy a house in Japan

While you don’t need to be Japanese or have permanent residency to buy property in Japan, you’ll still need to provide proof to validate your identity.

You must prepare these documents when buying property in Japan: 

• ID, such as a driver’s license

• Proof of residence (住民票, juminhyo)

• Your residence card (在留カード, zairyūkādo)

• Personal seal (判子, hanko)

• Certificate of seal impression (印鑑登録証明書, inkan tо̄roku shо̄meisho)

2. Find a reliable real estate agent.

Real estate in Japan is different if you are unfamiliar with it. While a real estate agent will find property for you, a great one will go above and beyond and be your number-one best friend when buying a house in Japan.

Savvy real estate agents understand the market, find the properties that best suit your needs and wants, and can negotiate for you when making an offer.

Additionally, they’ll access more property listings that are not listed online, giving you more options.

3. View the property in person.

While a Zoom viewing of the potential property is possible, viewing the property in person is more impactful. 

In-person, you’ll be able to assess the property's condition, local environment, transportation access, neighborhood amenities, and soundproofing—things that a Zoom call will have a hard time capturing. 

It is especially true if you are purchasing an akiya, as many akiya homes are abandoned or unmaintained, and you’ll need to check the property’s structural condition to ensure it’s structurally sound for possible natural disasters such as earthquakes.

4. Prepare financially.

We all know that buying a house in Japan is a major financial decision, so you must be financially prepared.

It is important to understand the other costs besides the house's price, related property taxes, and the commission fee. If you’ve received a free akiya, renovation costs will also be involved depending on the property's condition.

Also, it might be challenging to secure a mortgage or loan through Japanese banks, even if you are a foreigner with permanent residency or have a Japanese spouse. Depending on the real estate company or the property owner, they may ask for the initial deposit to be a bank account transfer or for the amount to be paid in cash rather than via credit card.

Additionally, there will be ongoing expenses such as utilities and maintenance. But why not let MailMate handle that for you? 

MailMate will handle your utilities and help you handle taxes 

MailMate provides property management services for foreigners and non-Japanese speakers in Japan and abroad. These services include helping with utilities, scanning mail for online viewing purposes, and acting as your tax representative.

Utilities liaison 

Whether you are setting up utilities for the first time, need to schedule a maintenance check, or need someone to pay your bills while you are away, MailMate will be that communication bridge between you and the Japanese service company.

For example, tell MailMate that you need a water sewage maintenance check. They will contact the respective Japanese company, schedule the time and date, and relay the information to you. 

Plus, when you are away from your property, MailMate will handle paying bills on your behalf.

Virtual mailbox

Whether you are away from your property or not, all important documents and mail will be forwarded to MailMate’s scanning location, where they will be uploaded to your online dashboard for your viewing.

From here, you can request an open, a translation, a forwarding, and a shredding request. If it’s a utility bill, we’ll also pay it on your behalf.

Tax representative

Owning a house in Japan means paying property-related taxes, which can be a real headache when you are not in Japan, away from your property, or don't want to deal with them in Japanese.

Well, MailMate has your back. When you appoint MailMate as your tax representative for your property, MailMate will be the one to handle all tax-related property issues on your behalf. 

So, we’ll let you know when taxes are due and how much needs to be paid without you needing to lift a finger.

5. Consider cultural differences.

Cultural and architectural differences will make renovating a house in Japan with more Western elements challenging.

For example, many traditional Japanese house layouts have a genkan, a tatami room, and a toilet separate from the bathroom. 

So, when requesting more Western house layouts and materials such as marble countertops, a pantry room, a standing shower, or a wall-mounted TV, it’s important to work with a contractor who understands these differences and suggests alternatives that fit your vision of your property. 

6. Overcome the language barrier.

Mostly, all documents and communication will be done in Japanese. While a translation app can help you get the overall picture, it tends to mistranslate anything specific.

If you are planning to get an akiya, consider using an akiya bank that caters to foreigners. They can act as your bilingual translator when obtaining property or real estate in Japan.

Or consider having a bilingual friend or translator to help with the buying process.

What to do after buying a house in Japan

After buying a house in Japan, you must pay the related taxes, including:

• Property tax

• Registration tax

• Capital gain

• City planning tax

Frequently asked questions

Is it true you can buy a house in Japan for $500?

Yes, buying a house in Japan for $500 is possible. You can search for these properties in Japan that are for sale or for free by looking through akiya banks.

How much does it cost to buy a house in Japan?

The average house price in Japan is about JPY 20-60 million, depending on the location. For example, the greater Tokyo area can range from JPY 40-50 million, while more rural areas will cost between JPY 20-30 million.

Where in Japan can I find and buy a traditional Japanese house?

Many traditional Japanese houses can be found in rural areas of Japan.

Can foreigners buy houses in Japan?

Surprisingly, yes. Anyone can buy property in Japan even when you are not a resident. 

In closing

Buying a house in Japan has opportunities and challenges for foreigners. These tips will help you prepare and understand what it takes. Local experts are here to help you through this process.