Japan is a country with a generally different attitude towards immigration than the west. The numbers, as is often reported, are much less. In light of this, many might wonder if buying property in Japan is possible for foreigners. Do you need to live there? Do you need to be a permanent resident? Is it better than renting? Etc.
Yes, Foreigners can Buy Property in Japan
The short answer here is yes – there are actually no restrictions on buying property in Japan. The only obligation on anyone, should they decide to do so, is they must provide a written notification to the Bank of Japan.
To buy a property in Japan, you don’t even need to have citizenship or a residence visa; quite literally, anyone can do it. That said, it’s important to bear in mind that owning property in Japan does not entitle you to citizenship or residence visa. With regard to that, you’ll be in the same boat as anyone else.
Own a Home in Japan in 10 Easy Steps!
Can Japanese Banks Help Foreigners with Mortgages?
Continuing in the same spirit, the answer is actually yes. Japanese banks can provide foreigners with a mortgage loan to buy a home, again, even without citizenship. The primary concern a bank will have with regards to lending to a foreigner is your intention to stay in Japan during the loan repayment period. Generally, Japanese banks will want you to stay in Japan for the duration of the loan repayment period. This is because it is understood that prompt payment may not be as likely from lenders who are not in the country.
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Buying vs. Renting
If you’re planning on buying a home in Japan, the chances are you’ve had some experience, or at least considered, renting. The reasons why you may or may not decide to buy or rent in Japan are myriad and, naturally, particular to each person. That said, there are few metrics by which you can weigh up the two approaches.
Japan offers some of the lowest interest rates in the world, and buying a home there can be a solid investment. Yet renting also offers its advantages. For example, there’s a long list of extra costs and taxes that come with buying a home in Japan. For one thing, a broker’s fee can be pretty pricey, and then there is an annual tax, registration tax, etc. The lesson here is to know what you’re getting into!
The Main Problems Foreigners Face Renting Homes in Japan
What mainly determines whether foreigners buy or rent in Japan, however, is how long they intend to stay. As mentioned above, this will determine the willingness of a Japanese bank to offer you a mortgage loan and, even if you are buying to let, you might wish to live there first to make the endeavor worthwhile.
Be it the bustle of the metropolis or the calm of the rural prefectures, the property market in Japan is a varied one. Property types and property prices alike can range quite a bit. Be it a traditional tatami matted minki to a Tokyo high-rise, there's so much to explore.
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