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

Last Updated: December 18th, 2024
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.

How can I buy an akiya in Japan?

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

Step 1. Inquiry

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

Step 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.

Step 3. Purchase application

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

Step 4. Contract signing

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

Step 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: 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.

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: 

2. Find a reliable real estate agent

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

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.

👉 Check out our tax calculator for properties in Japan

If you require financing, keep in mind you may find it 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.

A handy service for individuals looking to purchase property in Japan is MailMate's property management service, popular among expats and property owners living outside of Japan.

Mail and Bill-Payment Service for Second Property Owners

MailMate provides property management services include helping you get set up with utilities, scanning property mail for online viewing, connecting you to the internet, and acting as your tax representative to help you stay compliant with local governments.

Here are some features of MailMate's services for second home owners:

a. Utilities & internet liaison 
MailMate Liaison and dashboard

Whether you are setting up utilities or Internet 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.

b. Virtual mailbox
MailMate dashboard

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.

c. Tax representative
tax service

Owning a house in Japan means paying property-related taxes, which can be a real headache when you are away from your property for a prolonged period.

MailMate has your back. When you appoint MailMate as your property tax representative, MailMate will pay tax-related bills on your behalf and serve as a liaison between you and the tax office. 

We'll let you know when taxes are due and how much needs to be paid without you needing to lift a finger.

Need a Tax Agent in Japan? 🗾
MailMate will assist in paying your utilities or your property tax bills for your Japan-based property.
By signing up, you agree to our Terms of Service, Privacy Policy, and Handling of Personal Information.

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.

In general, expect that 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 help with the buying process.

What to do after buying a house in Japan

Taxes

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

  • Property acquisition tax

  • Registration and license tax

  • Capital gains tax

  • Fixed asset tax

  • 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. And don't forget—local experts are here to help you through this process.

Founded in 2019, MailMate has simplified property ownership for foreigners living abroad and is an increasingly popular option recommended by users and well-known industry figures.

Javier Batista

Don’t Live Near Your Second Property?🏡
Use MailMate’s property management services to keep your second property running smoothly—even from afar. ✨
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