Search Icon
Menu Icon
Menu Close icon

How do foreigners buy a house in Japan? Explanation of necessary documents and costs for purchasing real estate.

update date
This site introduces products through an affiliate program.
Scenes of foreigners buying real estate in Japan

Many foreigners who have lived in Japan for a long time may want to buy and live in their own house instead of renting.
This article explains how foreigners can buy a house in Japan, key points, required documents and costs, and whether they can get a loan.

Also, if you are interested in rent prices in Japan, please check out the following articles.
▶︎ Rent prices by region and in Japan! Which regions have the cheapest rent?

▼Goandup Picks Click here for recommended articles!

Can foreigners buy a house in Japan?

Under Japanese law,foreigners can buy houses and land just like Japanese.Japan is the only country in the world where foreigners are allowed to buy houses and land. While some countries restrict foreigners from purchasing homes or land, Japan has no such restrictions. The lack of restrictions means that you can buy a house in Japan for investment purposes even if you do not have permanent resident status or do not live in Japan. This law was enacted in June 2021 to restrict Chinese capital from buying up land, and has no particular impact on the ability of ordinary foreigners to purchase a house in Japan.

How to Find Real Estate Properties in Japan

Some foreigners may have difficulty reading, writing, and speaking Japanese. However, they can basically search for a house in the same way as Japanese people, by using Internet real estate sites or visiting a real estate agency in person. There are websites for foreigners and real estate agencies that provide services in foreign languages, so find a service that is easy for you to use.

Find it on the Internet

There are many real estate websites on the Internet where you can search for properties in Japan. Famous sites include "SUUMO" and "HOMES," which offer a wealth of information and allow you to search for homes throughout Japan.
If Japanese is not your native language, we recommend using a real estate website that provides information in English. Sites such as "PLAZA HOMES" allow you to search for Japanese properties in English.

Real Estate Japan

The site handles properties for sale throughout Japan and is available in several languages, including English. The site also introduces the procedures and necessary documents for foreigners to purchase real estate in Japan. (Real Estate Japan)

PLAZA HOMES

This real estate website specializes in the sale and purchase of luxury homes and condominiums in Tokyo and its suburbs. Services are provided in English, and the site offers a wide variety of property information in areas popular with foreigners. (PLAZA HOMES)

Housing Japan

This site provides information on luxury properties for sale and purchase, mainly in Tokyo. Services are available for foreign investors and residents, and support is provided in English. (Housing Japan)

Find with a real estate agent

Another way to find a property is to visit a real estate agent in person. At a real estate agency, you can search for a house while discussing directly with the staff, which is suitable for those who are not comfortable with only information on the Internet. It is also possible to obtain information on properties that are not listed on the Internet.
However, many Japanese real estate agencies do not support English, so it is better to look for an English-speaking real estate agency. For example, companies such as "Sumitomo Real Estate Sales" can provide multilingual support and help you purchase real estate.

Ken Corporation

We are a real estate agency specializing in buying and selling luxury real estate in Tokyo. We are available in English and assist foreigners in purchasing real estate. (Ken Corporation Ltd.)

Seven Signatures International

The company provides services related to real estate sales and investment in Japan, is multilingual, and offers extensive support to foreign clients. (Seven Signatures International)

Sumitomo Real Estate Sales Co.

With its nationwide network, Sumitomo Real Estate Sales provides a wide range of real estate services, from residential sales to rental management. Sumitomo Real Estate Sales is multilingual and provides extensive support to foreign customers. (Sumitomo Real Estate Sales Co.)

Please refer to this article ▼
How do foreigners buy a house in Japan? How to find and buy a house in Japan
How much is a house in Japan? Single-family home prices & real estate buying tips!

Real Estate Purchase Process

The process of purchasing real estate involves multiple steps, from property selection to contract and transfer of ownership.

  1. Needs identification and budget planning: Identify the type of property that best suits your needs and your purchase budget.
  2. Property Search: Find properties through online sites and real estate agents.
  3. Property tour: Go to see the property you are interested in in person.
  4. Price negotiation and deposit payment: If you are satisfied with the property, negotiate the price, and upon agreement, pay the reservation deposit to secure the property.
  5. Execution of purchase agreementI agree to the terms of the contract by entering into a formal purchase agreement.
  6. Mortgage Loan Application: Apply for a mortgage loan if necessary.
  7. Payment of balance and submission of required documents: Pay the balance due under the contract and submit documents related to the purchase.
  8. registration procedures: The registration procedure is carried out to transfer ownership of the property.

Additionally, understanding the market trends and price ranges to consider when purchasing real estate is critical in the buying process. The following points should be kept in mind when foreign nationals are entering the Japanese real estate market.

  • Understanding Market Trends: The real estate market in Japan varies greatly from region to region. In urban areas, prices tend to skyrocket along with high demand, while in rural areas it is possible to find properties at more affordable prices.
  • Understanding the price range: Property prices vary depending on location, size, and age of the property. To find the best property within your budget, it is important to understand the price range of the market and select an area that best suits your needs.
  • Future Value: When purchasing real estate as an investment, it is also important to consider future value and resale value. It is recommended that you research the area's development plans and projected future demand, and choose an area where property values are likely to increase.

When purchasing real estate in Japan, the key to success is to gather information on these market trends and price ranges in advance and plan accordingly. Therefore, it is recommended that you actively utilize market research and professional advice. ▶︎Oh!

Documents required for foreigners buying a house in Japan

When a foreigner purchases a house in Japan, different documents may be required than for a Japanese person.A resident card,special permanent resident certificate:, must be submitted to the real estate agent as required.
The documents required depend on whether you have a status of residence or not. For example, if you do not have a status of residence or do not live in Japan,affidavitand other documents may be required.

  • A resident card,special permanent resident certificate:If you already have a visa, you can use it as it is. If you already have it, you can use it as it is. If you have lost it, you must go to the nearest immigration bureau for reissue.
  • affidavit: This document is required when the purchaser does not live in Japan or does not have a resident status, and is an acknowledgement that the purchaser is legally responsible for the property. This document is usually prepared at the Legal Affairs Bureau or Notary Public Office in the location of the property to be purchased and must be certified by a notary public.

In addition, in Japan, a personal seal is often required when signing a contract, so it is convenient to have one made if you do not already have one. In some cases, a signature may be sufficient, but an inkan may be required for a loan.

What are the costs involved in purchasing real estate in Japan?

When purchasing a house, there are various expenses in addition to the purchase price. When purchasing a house through a real estate agent,"brokerage fee"will be charged. The maximum fee is set by law and ranges from 31 TP9T to 51 TP9T of the purchase price.
When buying a house,real estate acquisition tax,registration tax,consumption tax (incl. sales tax, VAT, excise duty, etc.)and other taxes. Registration and license tax is required to register the purchase of the house with the government. Other taxes include fire and earthquake insurance premiums, as well as bank fees and guarantee fees when taking out a loan.

Although it is possible for foreign nationals to obtain a mortgage loan, conditions may be more stringent than for Japanese nationals, and the ease of obtaining a loan depends on whether or not you have permanent residency status, your history of residence in Japan, and your marital status with a Japanese national. Even if you do not have permanent resident status, it is possible to obtain a loan under certain conditions.

Reference:Ministry of Land, Infrastructure, Transport and Tourism

Can foreigners get a mortgage?

In Japan, foreigners can obtain a mortgage loan if they meet the requirements. Although they vary from bank to bank and financial institution to financial institution, in general, stable income and period of stay are required. In some cases, the presence or absence of permanent residency status may also affect loan conditions. Proof of income and proof of residency are often required when applying for a loan.
Since few people can buy a house in one lump sum in cash, they will usually take out a loan. However, some may be concerned about whether foreigners can get a loan.
Conclusions,foreigners can also get a loan in Japan.Is. Although it varies from bank to bank and financial institution to financial institution, generally a stable income and period of stay are required. In addition, the hurdles may be somewhat higher than for Japanese nationals.

For example, foreigners who do not have permanent resident status will have more difficulty obtaining a loan than those who do. However, even those without permanent resident status may be able to obtain a loan if they have lived in Japan for a long time and are married to a Japanese national. One option is to ask your Japanese spouse to take out a loan instead of taking out a loan yourself.
The steps for a foreigner to obtain a mortgage loan in Japan are as follows

  1. Verification of status of residence and residential status: I certify that I am able to reside in Japan for a long period of time.
  2. proof of income: Prepare documents to show that you have a stable income.
  3. Selection of Financial Institutions: Select a bank or financial institution that offers loans to foreigners.
  4. Submission of Required Documents: Residence card, passport, proof of income, etc.
  5. Loan Application: Apply for a loan to a financial institution for review.
  6. Waiting for screening results: Wait for the financial institution to review and approve the application. It varies with each financial institution and may take several weeks to several months.

Please refer to this article ▼
No Permanent Residency! A Guide to Loans for Foreigners

Useful information and support for living in Japan

Living in Japan is fascinating, but it is not uncommon to face many challenges due to language barriers and cultural differences. For example, you may encounter difficulties in all aspects of life, from using keigo (honorific expressions) in everyday and business situations, to difficulties in finding housing, using public services, preparing for the JLPT exam, and even meeting new friends and loved ones.

At such times, Goandup Salon will be your reliable partner!

Our community provides support and information to help foreign residents in Japan to make their life in Japan richer and more comfortable.

  • Japanese Language Studywill meet the needs of all levels, from daily conversation to the use of keigo in business situations, to efficient Japanese language learning methods and preparation for the JLPT exam.
  • livingaspect of the program provides concrete advice and information on how to establish a foundation for living in Japan, including explanations of Japanese culture and rules, finding housing, and how to contract public services and living infrastructure.
  • Jobs & CareersRegarding the "what if" section, we can help you find a job, change jobs, and understand Japanese business etiquette and workplace culture, which are key to a successful career in the workplace.
  • Travel & Dining Guidewill introduce you to hidden gems in Japan, must-try gourmet information, and other unique local attractions to help you experience Japan more deeply.

If you have any questions or concerns about life in Japan, Goandup Salon is here to help you! We will wholeheartedly support you to make your life in Japan smoother and more enjoyable.

For more information, click here ▼

Goandup Salon" community for foreigners living in Japan

summary

It is possible for foreigners to purchase a house in Japan, but the procedures can be complicated and loan approval can be difficult. It is important to follow the appropriate procedures and meet the requirements.

  • We, "Goandup", will continue to promote the charm of Japan to the world.

  • If you found this article useful or enjoyable in any way, we would appreciate your support to fund our operations.

  • We would appreciate donations of any amount via the PayPal link below.
    ▶️ paypal.me/goandup

    • Related Articles

    Goandup Picks for Expats > Lifestyle Support > Housing Search and Real Estate Information > How do foreigners buy a house in Japan? Explanation of necessary documents and costs for purchasing real estate.