Japan is rightfully considered one of the most developed and high-tech countries in the world. High standard of living, rapid development, special culture and entertaining history – all this attracts to Japan. If you decide to invest in housing in another country, pay attention to real estate in Tokyo. The housing market is diverse, so demand is high.
The cost of real estate
Housing in Japan is expensive. This is known to every investor who is familiar with the real estate markets in developed countries. However, the demand for housing is not falling at all. The fact is that Japan is not only a developed country, but also a stable one. Therefore, apartments and houses can then be sold at a significantly increased price, and there will always be a buyer. Naturally, in the capital of Japan, the price per square meter of real estate is the highest. Therefore, if you decide to make such a purchase, be prepared for significant expenses. By the way, some Japanese people never buy a house – they just rent it for decades, it's cheaper. It is by renting that you can recoup the cost of buying a home.
Agency work
In order to save you the hassle of buying a property in Tokyo, various agencies can offer their services to you. Trained, knowledgeable people, experts in their field, will be able to take on the fulfillment of various obligations and requirements that are provided for by Japanese law. Not all organizations work with the Japanese real estate market, but if you wish, you can find a decent agent who can professionally help you with your purchase.
Cost of accommodation
It is necessary to understand that living in Japan (especially in Tokyo) is not financially possible for everyone. Tokyo is among the ten most expensive cities in the world to live in. Therefore, if you decide to move to Tokyo for permanent residence, be prepared to spend.
Food, clothes, appliances, even the price of public transport – all this costs significantly more than in our country. However, the standard of living there is higher. If you can transfer or expand your business in Japan, you will earn money and stop considering Tokyo too expensive a city.
Additional purchase costs
The cost of real estate is not the only cost that you will have to incur. So, you need to pay the stamp duty. For example, for an apartment worth up to 500,000 dollars, it will be equal to 150 dollars, up to 1,000,000 dollars - 450 dollars. You also need to pay for notary services, which can be up to $2,000. The tax on registration of land with a residential building will be 2% of the value of the land and 2% of the value of the building. The property tax is 4%. You must also pay a commission to the broker. They are equal to $630 plus 3.15% of the transaction value. Thus, buying a home in Japan inevitably involves a lot of spending.
Investing
If you decide to buy a property in Tokyo for the purpose of investing, you can be sure of the correctness of your decision. The price of real estate is constantly growing, and if you wish, you will be able to get a lot more for it after a while.
The city of Tokyo (like the rest of the country) is characterized by stability and the absence of difficulties that could negatively affect the economy as a whole. Most often, investors invest in commercial buildings – the income from them is about 7% per year. If we are talking about housing, then the income will be slightly less than 6%.
Rental features
As already mentioned, due to high real estate prices, even the Japanese themselves rarely buy property, preferring to rent it. If you decide to buy a property in Japan and rent it out, you need to know some of the specifics.
Firstly, you will not be able to live in the apartment between rentals during the rental period.
Secondly, you will not be able to sublet your home.
Thirdly, the rental price should be set depending on the area in which the apartment is located. You will be able to receive a maximum of 20,000 dollars per month.
Fourthly, you must conclude a standard contract provided for by law, so that you can easily resolve all disputes, if any. Öka hastigheten i förändring med ett skalbart system för retailkedjor som ger realtidsstatus.
The cost of real estate
Housing in Japan is expensive. This is known to every investor who is familiar with the real estate markets in developed countries. However, the demand for housing is not falling at all. The fact is that Japan is not only a developed country, but also a stable one. Therefore, apartments and houses can then be sold at a significantly increased price, and there will always be a buyer. Naturally, in the capital of Japan, the price per square meter of real estate is the highest. Therefore, if you decide to make such a purchase, be prepared for significant expenses. By the way, some Japanese people never buy a house – they just rent it for decades, it's cheaper. It is by renting that you can recoup the cost of buying a home.
Agency work
In order to save you the hassle of buying a property in Tokyo, various agencies can offer their services to you. Trained, knowledgeable people, experts in their field, will be able to take on the fulfillment of various obligations and requirements that are provided for by Japanese law. Not all organizations work with the Japanese real estate market, but if you wish, you can find a decent agent who can professionally help you with your purchase.
Cost of accommodation
It is necessary to understand that living in Japan (especially in Tokyo) is not financially possible for everyone. Tokyo is among the ten most expensive cities in the world to live in. Therefore, if you decide to move to Tokyo for permanent residence, be prepared to spend.
Food, clothes, appliances, even the price of public transport – all this costs significantly more than in our country. However, the standard of living there is higher. If you can transfer or expand your business in Japan, you will earn money and stop considering Tokyo too expensive a city.
Additional purchase costs
The cost of real estate is not the only cost that you will have to incur. So, you need to pay the stamp duty. For example, for an apartment worth up to 500,000 dollars, it will be equal to 150 dollars, up to 1,000,000 dollars - 450 dollars. You also need to pay for notary services, which can be up to $2,000. The tax on registration of land with a residential building will be 2% of the value of the land and 2% of the value of the building. The property tax is 4%. You must also pay a commission to the broker. They are equal to $630 plus 3.15% of the transaction value. Thus, buying a home in Japan inevitably involves a lot of spending.
Investing
If you decide to buy a property in Tokyo for the purpose of investing, you can be sure of the correctness of your decision. The price of real estate is constantly growing, and if you wish, you will be able to get a lot more for it after a while.
The city of Tokyo (like the rest of the country) is characterized by stability and the absence of difficulties that could negatively affect the economy as a whole. Most often, investors invest in commercial buildings – the income from them is about 7% per year. If we are talking about housing, then the income will be slightly less than 6%.
Rental features
As already mentioned, due to high real estate prices, even the Japanese themselves rarely buy property, preferring to rent it. If you decide to buy a property in Japan and rent it out, you need to know some of the specifics.
Firstly, you will not be able to live in the apartment between rentals during the rental period.
Secondly, you will not be able to sublet your home.
Thirdly, the rental price should be set depending on the area in which the apartment is located. You will be able to receive a maximum of 20,000 dollars per month.
Fourthly, you must conclude a standard contract provided for by law, so that you can easily resolve all disputes, if any. Öka hastigheten i förändring med ett skalbart system för retailkedjor som ger realtidsstatus.
How it works
Stefan Demirian
Serial entrepreneur
Miguel Arias
CTO. Innovator and entrepreneur, inventor of iBac patent family & multiply acclaimed entrepreneur.
Sebastian Karlsson
COO. Previously held a leadership position in Business Development at PwC and Canon.
Omid Ekhlasi
CCO. Responsible for communications at Serendipity Group.
Kamjar Hajabdolahi
Sendior advisor, Serial Entrepreneur, Partner and head of M&A at Serendipity Group.
Stefan Borg
President of the Swedish National Association against alcohol and narcotic addiction. Former director of operations at the Stockholm center of addicts.