How do foreigners purchase used real estate in Japan? Introduction of Procedures and Points to Note

The purchase of Japanese real estate by foreigners has become a hot topic. The use of real estate in Japan varies from “the top floor of a tower mansion” to “a vacation home in a high-end resort area.

Even non-Japanese nationals can purchase used Japanese real estate if they follow the proper procedures.

Japan is unique in that there are no restrictions on buying and selling based on the nationality of the prospective real estate purchaser, and there are only a few countries that do not have such restrictions as Japan. Since foreigners are considered to have the same conditions as Japanese nationals when purchasing Japanese real estate, Japanese real estate is considered safe and easy for foreigners to purchase.

This article summarizes the “procedures and steps for foreigners to purchase used real estate in Japan” and “Can I get a mortgage loan again?

We will explain how to purchase Japanese real estate one by one.

What is the procedure for foreigners who want to purchase Japanese real estate, including the necessary documents and qualifications for purchase?

The flow of contracts for the sale and lease of real estate in Japan is considered to be almost the same for both Japanese and foreigners. Basically, the flow is to “buy and sell using a real estate company.

Flow of Real Estate Transactions

(1) Consult with a real estate agent about the desired conditions of the property, and actually inspect the property from among those that match the conditions.

(2) When you have decided on a property to purchase, a “proof of purchase” is prepared to indicate your intention to purchase. At this time, a deposit will be paid.

(iii) In the case of a foreign national, the real estate company or broker must examine the applicant to confirm his/her “status of residence” and “ability to pay the purchase price.

If there are no problems in the examination, the real estate company will provide an “explanation of important matters” in accordance with the law, and the procedure will begin in earnest.

⑤ All procedures require confirmation and a contract to be drawn up, and payment of a brokerage fee, etc. will be required upon conclusion.

⑥ Settlement of the purchase price is made based on the contract, and an application for real estate registration is filed after settlement. This completes the purchase and registration of the property, and you become the owner of the real estate.

Foreigners can also take out a mortgage loan.

Although many financial institutions stipulate “Japanese nationality or permanent resident permit” as a requirement for mortgage loan applications, it is possible for foreigners to obtain a mortgage loan as long as they meet one of the minimum requirements as follows

1. Housing for one’s own residence in Japan is eligible.

Since the purchase of a residence to live in is a prerequisite, the purchase of a vacation home in Japan without residing in Japan or overseas real estate is not eligible for this program.

2. Japanese nationality, permanent resident, or special permanent resident is required.

Even if you are not a Japanese citizen or a permanent resident, there are cases where you can obtain a mortgage loan if you are a “qualified resident” or a “resident card holder,” so you need to check with each financial institution. Permanent residents may also be able to take out a mortgage loan for foreigners.

3. Spouse has Japanese nationality

Even if the mortgage borrower himself/herself does not have Japanese citizenship or permanent resident status, some banks will make it possible under the condition that the spouse has either of these and serves as co-signer.

4. Able to understand Japanese

Financial institutions also say that it is difficult to obtain a mortgage loan if you cannot respond in Japanese.

Conclusion

As we have shown, it is not difficult for foreigners to obtain a mortgage loan if they meet the requirements.

It is possible for foreigners to own land or a house in Japan even if they do not have “Japanese nationality” or “permanent resident status. There is no special taxation just because you are a foreigner, so as long as you have documents to verify your identity, you can purchase with confidence.

In addition, purchasing used real estate in Japan is possible for foreigners without restrictions. If you live in Japan, there is no major difference in the required documents.
If you have obtained a permanent resident visa, you can be screened and use a mortgage loan in the same way as Japanese nationals.

If you are considering purchasing used real estate in Japan, please refer to the procedural steps introduced in this article.