Introducing the market price for purchasing real estate in Japan.

When considering a real estate purchase, “How much is a market price amount?” and there are probably many people who have the question, “How much is the market price? It is no exaggeration to say that the purchase of a housing is “the most expensive shopping” in one’s life.

In addition to the price of the property, various expenses are required for real estate purchase. Generally, it is said that “6-9% of the property price” is required.

This article introduces the average purchase price of a house, various expenses, and other market prices for purchasing real estate in Japan. Please read to the end.

What is the average purchase price of a home?

It is difficult to make a general estimate, as it varies greatly depending on whether it is a detached house or a condominium, the area, and the size of the lot, but it is said that a custom-built house with land costs about 47 million yen, a built-for-sale house about 37 million yen, a condominium about 49 million yen, a used detached house about 27 million yen, and a used condominium about 32 million yen. Used houses are said to be about 27 million yen, and used condominiums about 32 million yen.

Expenses for purchasing real estate

1. Brokerage fee

When a real estate company mediates between a seller and a buyer, it is a contingency fee paid by the buyer.
Although payment at the time of settlement is common, it is also possible to pay half at the time of contract and half at the time of settlement, depending on the case.
The maximum limit is set by the Building Lots and Buildings Transaction Business Law as follows.

2. Loan guarantee fee

A mortgage loan is guaranteed by a guarantor company instead of a co-signer. A guarantor company guarantee fee is paid when you take out a mortgage loan.

The merit of using a guarantee company is that it makes it easier to pass the loan examination by signing a contract with the guarantee company, and the demerit is that the purchased real estate must be sold if the loan cannot be repaid.

Since there are advantages and disadvantages to using a guarantee company, it is necessary to carefully consider the advantages and disadvantages of using a guarantee company.

3. Registration fee

When purchasing a property, registration of preservation of ownership or registration of transfer of ownership is required, each of which incurs a cost.

Although you can perform the registration procedures yourself, it is said that it is common to request a judicial scrivener to perform the registration on the day the property is handed over to you.

When paying the registration fee and the amount of the judicial scrivener’s fee together, check the estimate of the judicial scrivener you request for the exact amount, as it will vary depending on the amount of the loan and other factors.

In addition, in the case of new construction, a display registration fee is also required. This is a request to a land and building surveyor, and generally costs approximately 100,000 yen.

4. Property Tax and City Planning Tax

Fixed property tax and city planning tax are taxes imposed on people who own land or buildings as of January 1 of the year, and are payable annually for the entire year.

Please note that it is calculated on a pro-rata basis over 365 days and must be paid to the seller at the time of delivery.

5. Stamp fee

This is a tax imposed on each contract that is drawn up when purchasing a real estate transaction. It is said to range from 20,000 to 40,000 yen, although it varies depending on the amount stated in the contract.

6. Fire and earthquake insurance

When purchasing a house, fire insurance is mandatory.
It is important to compare the amount and coverage, as coverage and other factors differ depending on the insurance company.
Since the amount varies greatly depending on the coverage and the number of years of the contract, an estimate of the exact amount is required.

7. Management and Repair Expenses

This is an expense charged in the case of condominiums. The maintenance fee and the reserve for repairs are paid on a pro-rata basis from the date of delivery.

Summary

In this article, we introduced the average purchase price of a house, various expenses, and other expenses when purchasing real estate in Japan.

Many of you may have been surprised at the amount of fees and taxes involved in purchasing real estate and housing.
It is a good idea to prepare a large amount of expenses in advance. It is important to make a financial plan while simulating the necessary expenses.

Since the approximate amount varies depending on the property to be purchased, start by clarifying what kind of property you want to purchase.

Please refer to this article when purchasing real estate.