Step-by-Step Guide to Buying a House in Japan

Step-by-Step Guide to Buying a House in Japan

This comprehensive guide outlines the process of purchasing property in Japan, based on personal experiences shared by Matt Guy, who bought a $6,000 house in the snow country of Moko kogan.

Step 1: Property Search

1. Use websites like www.athome.co.jp and www.suumo.jp to search for properties.
2. Utilize Google Translate to navigate Japanese real estate websites.
3. Consider contacting local real estate agents in your desired area.
4. For vacant properties (Akiya), check prefecture-specific Akiya pages.
5. Be prepared to register on some websites to access full property listings.

Step 2: Property Selection and Agent Contact

1. Review property details carefully, noting:

• Whether the land is owned or leased
• Year of construction
• Current occupancy status
• Specific conditions or restrictions on the property

1. Contact the real estate agent through the website or provided contact information.
2. Be prepared for agents to prefer in-person meetings over email communication.

Step 3: Property Inspection

1. Schedule an in-person visit to the property with the agent.
2. Bring a translator if you don’t speak Japanese.
3. Prepare a checklist to assess:

• Wall and ceiling conditions
• Plumbing and electrical systems
• Gas services
• Potential termite damage

1. Consider hiring a professional builder or engineer for a thorough inspection.
2. Review any existing property inspection reports provided by the agent.

Step 4: Make an Offer

1. Submit your offer via email or phone, followed by a written confirmation.
2. Be respectful when negotiating the price to avoid offending the seller.
3. Wait for the agent to communicate with the seller and discuss your offer.

Step 5: Offer Acceptance and Contract Creation

1. Upon offer acceptance, expect to receive an “intent to contract” document.
2. Provide necessary personal information and proof of identity.
3. Review the breakdown of costs, including:

• Property and land cost
• Agent fee (typically 3% of property value)
• Lawyer fee (approximately 50,000 yen for title transfer)

1. Pay the required deposit (usually 10% of the property value).
2. Submit all required documentation within the specified time limit.

Step 6: Final Payment and New Title Application

1. Attend a meeting with the agent, seller, and lawyer on the handover date.
2. Sign all necessary documentation.
3. Submit the application for the new property title.
4. Pay the remaining balance (typically 90% of the property value).
5. Choose between bank transfer or cash payment methods.
6. Receive a receipt and estimated move-in date.

Step 7: Moving In

1. Be prepared for potential delays in the move-in date.
2. Expect to find some items left behind by the previous owner, especially in cheaper properties.
3. Familiarize yourself with local waste disposal regulations to save on cleaning costs.
4. Budget for disposal fees (e.g., 50,000 yen or $300 for a six-bedroom house).

Important Considerations

1. Buying property doesn’t grant a visa for year-round residence in Japan.
2. Japan is not ideal for property investment or making money through real estate.
3. Airbnb and rental opportunities are limited and subject to local regulations.
4. Consider how you’ll connect with the local community, especially if you’re not a full-time resident.
5. Be prepared to learn Japanese and adapt to local behavioral norms.
6. Understand that most local buyers prefer new properties over renovated ones.
7. Be aware of potential language barriers throughout the buying process.
8. Take note of specific property conditions, such as setback requirements for renovations or rebuilding restrictions.

By following these steps and keeping these considerations in mind, you’ll be well-prepared to navigate the process of buying a house in Japan.