Japan has always been a desirable destination to live, work or play of millions of people the world over. But one knows that gaining a foothold in the Japanese real estate market is no easy feat. Especially if you plan to buy a property in or near Tokyo, then the price further becomes more insane.
While some statements hold true in a way, most assumptions of an outsider toward the real estate market in the Land of the Rising Sun are often terribly wrong.
Until you consult a full-service real estate company specialising in the Japanese market to help you clarify your own misconceptions, getting these erroneous beliefs out of the way is a great start:
Properties Only Last for 30 Years
This isn’t entirely true. The life expectancy of Tokyo properties and other buildings in the country is only around 30 years because they’re being demolished for redevelopment. But without any intervention, an average house or condominium complex should live longer with regular maintenance and timely repairs.
In addition, modern concrete products now allow properties to last up to a century, not to mention the earthquake-resistant designs they use in many construction projects.
The Second-Hand Property Market is Non-Existent
This couldn’t be more wrong. On the contrary, the market is quite strong. According to a report on real estate movements in the Tokyo Metro, pre-loved properties beat newly built houses in sales in 2009. In 2013, the sales of new properties are only slightly higher than the numbers tallied by second-hand houses and used apartments.
No Financing is Available for Non-PR Foreigners
That might be harder in the past, but not today. A few local banks are becoming keener to extending credit to foreigners with no permanent residency status. And in case you can’t find a less conservative Japanese bank for a mortgage, many foreign banks, particularly The National Australia Bank, provide loans to non-PR residents in Japan.
Much like in other countries, there’s so much to learn about the Japanese real estate market. And since it’s a serious purchase, make sure you find the right partner that can help you realise your dream of living or investing in Japan.