Real Estate Purchase Flow in Japan
We handle real estate nationwide,
but we highly recommend condominiums
in central Tokyo, such as Roppongi, Azabu,
Aoyama, Akasaka, Hiroo, Ebisu, and Banchō.
The reason is that they are easy to rent out and sell.
This is based on our staff‘s over 10 years of
experience in catering to foreigners,
luxury rental leasing, and property management.
Of course, we can also assist you with leasing,
property management, restoration,
and selling of the property you are purchasing now.
Additionally, we can also introduce you to lawyers,
tax accountants, and certified public accountants.
|Market prices for condominiums
in central Tokyo are as follows:
- Property Selection:
If you are considering purchasing real estate in Japan, please contact our company first! Once we confirm that our direction aligns with your requirements, we will send you property information via email that matches your preferences. Please let us know if you find any property that you like or if you are interested in any of the options we have provided.The form can be found here
- Preparing funds (This is crucial!)
- Property Viewing
When requesting a property viewing, please choose one of the options below and contact us. Please note that the expenses for airfare, accommodation, stay, souvenirs, etc., will be borne by the customer.
※ For properties in the city center, due to security reasons and COVID-19 measures, it is often not possible to accept reservations for the day before or the same day. Therefore, it is preferable to make a reservation at least two weekdays in advance.
- In-person viewing
- After discussing your itinerary, preferred date and time for the viewing, and meeting location, we will arrange to meet and pick you up at your hotel or Haneda Airport, among other options. Each viewing takes approximately 15-20 minutes, and we can accommodate 4-5 viewings per day, including travel time. The total duration is approximately 2 hours.
- Virtual tour
- We can either send you property introduction videos that we have taken on-site for you to review and make a decision, or we can schedule a live virtual tour at a mutually agreed-upon date and time.
Please let us know your preference and any specific requirements. We look forward to assisting you with your property viewing.
- Purchase Application
Once your intention to purchase is confirmed, we will submit an offer to the Listing Agent. Our company will create the offer letter on your behalf. Any requests, consultations, or negotiations with the seller will be included in the offer letter. Please note that no further negotiation of terms is possible after the submission of the offer letter. Additionally, please be aware that in Japan, the buyer is also responsible for the brokerage fee ((3% of the purchase price + 60,000 yen) × 10% consumption tax), so please take note of this.
■Required Information at the Time of Application
(It is essential to demonstrate to the seller that funds are prepared; otherwise, the offer letter will be considered invalid!)
・Desired Conditions, Consultations, etc.
・Letter of Authorization for Application to Our Company
Once the seller receives the offer letter, a counteroffer will be sent through the Listing Agent. Based on our advice, please decide whether to proceed with negotiating and fine-tuning the conditions for the contract or consider purchasing another property if the terms cannot be agreed upon.
If you choose to proceed with the contract, it is typically possible to finalize the agreement within approximately one week from the counteroffer. Additional fees apply, but English translation is available.
The contract can be signed by someone other than the buyer if they provide a letter of authorization. We recommend granting power of attorney to a judicial scrivener, whom we can introduce, especially for name changes during the process, as they can handle English translations.
A down payment is required when signing the contract. Typically, it is 5-10% of the purchase price. Please either bring this amount on the contract date or transfer it to the designated account of the judicial scrivener by the day before. Please note that the transfer fee is the buyer’s responsibility.
- Delivery and Settlement
of Remaining Payment
The delivery and settlement process is the most crucial ceremony in the series of real estate transactions and typically takes place approximately one month after the contract is signed. At this time, your presence is generally required. During the settlement, the judicial scrivener will confirm the intention of both the seller and the buyer, verify their identities, confirm the availability of funds, and if the payment is made via transfer, ensure the correct transfer and receiving accounts. The funds can then be transferred under the direction of the judicial scrivener. The exchange of keys will also occur simultaneously, marking the completion of the transaction.
However, if it is absolutely impossible for you to be present at the settlement, the judicial scrivener can visit your home to confirm your intention to purchase, verify your identity, and confirm the availability of funds. In such cases, the buyer is responsible for covering the judicial scrivener’s airfare, accommodation, and travel expenses.
- Change of Ownership
After the completion of the transaction, the judicial scrivener will go to the Legal Affairs Bureau and submit the necessary paperwork for the change of ownership (registration change). It takes approximately one month to obtain the new registration certificate, which confirms the change in ownership. Once the application for registration change is submitted, the buyer’s name will be recognized.
- Management and Operation
After the completion of the transaction, you can start renovation or begin the process of renting out the property. Of course, you can also start living in the property. We offer assistance in selecting furniture and appliances for an additional fee.
In the case of purchasing for investment purposes, we can handle everything for you, including lease agreements, collecting rent during occupancy, monthly reports, handling deposits, move-outs, arranging for repairs and restoration, and conducting new tenant searches. Our Property Management fee is 5% of the monthly rent plus consumption tax.
- Tax Payment
Approximately six months after the completion of the registration, you will receive a bill for real estate acquisition tax. We offer the option to handle the tax payment on your behalf, so you can entrust us not only with the acquisition tax but also with the annual payment of property tax and urban planning tax.
In order to minimize the tax amount on capital gains, we recommend a minimum holding period of five years. The value of real estate in central areas tends to appreciate by 3-5% annually. Selling in the short term would result in a higher tax burden and lower capital gains.
In addition, our company goes beyond just facilitating the purchase; we propose properties aligned with your purchase goals, accompany you on property viewings to exchange opinions, arrange for renovations and furniture/appliance procurement, handle detailed administrative procedures during ownership whether you choose to live in or rent out the property, assist with the sale process, and provide comprehensive care before and after the purchase.
If you have the necessary funds, you can leave everything to us. Many of our clients are satisfied from the first transaction and go on to purchase multiple properties (2nd, 3rd, etc.), and they often refer their family members and friends to us.
This is a testament to the trust they place in our company.