I don't understand Japanese. Is it a language barrier to me?
No. We can explain everything to you in English, Cantonese and Mandarin. Our foreign staff have lived in Japan for years and are fluent in Japanese. Our foreign "Real Estate Transaction Specialist" can explain property agreement to you in Japanese, Cantonese, Mandarin or English
Is there any limit for foreigners to purchase property in Japan?
No limit. Most of the land is freehold. Your descendants can inherit your property by law.
It is said that I need not pay tax if I don't do tax declaration. Is it true?
No. it is not true. In Japanese law, if your net income in Japan is over 380,000 yen, you have to do tax declaration (Kakutei Shinkoku). If tax bureau finds that you has evaded tax, you will be charged the tax amount in the past 7 years, interest (14.6%) and late fee (15%, 20% or 40%). Tax bureau may sequestrate your property until you pay tax. We advise our clients to do tax declaration and pay tax bill.
Can I visit inside of the property with tenants?
No. Japanese tenants are very sensitive on privacy. You can check the appearance only. If the property is vacant, we can let you visit inside.
How is the floor area measured?
There are registry and actual areas in Japan. Both excludes public area and balcony of the building. Registry area is measured from the inner line of wall. Actual area is measured from the centre line of wall. The difference between registry and actual areas is around 10%.
Can I check property transaction history online?
No. You cannot check it online.
Can I apply for mortgage?
Japan banks do not offer mortgage to foreigners without residence visa and stable income in the past 3 years in Japan. You can apply for mortgage in Bank of China or Bank of Communications (Japan) if you're mainland Chinese or Hong Kong citizen. Orix Asia Ltd do offer mortgage also if you're HK citizen. The longest mortgage term is 15 years and interest rate is about 3%.
If tenant does not pay rent, what can I do?
Unpaid rent rarely happens in Japan. Rental applicant is required to provide job and income certificates, residence certificate, personal details of guarantor and pay deposit. If there is no guarantor, rental applicant is required to join rental guarantee plan.
I am worried about the radiation from Fukushima nuclear plant does affect my health or building construction.
Radioactivity level of Tokyo is 0.035uSv/h, while that of Hong Kong is 0.14 uSv/h. The distance between Fukushima and Tokyo is 230km, but the distance between Daya Bay nuclear plan and Hong Kong is 53km only. Though Fukushima nuclear plant problem has not yet been resolved, radioactivity level of Tokyo is low. There is no evidence that Fukushima nuclear plant affects building construction of Tokyo.
I am worried that earthquake affects building construction.
New earthquake resistance standard must be applied on construction built after June 1981. We help our clients to join fire & earthquake insurance plan for property.
Can In migrate to Japan if I own property in Japan?
No, property ownership is not related to immigration in Japan. You can enjoy 90-day visa free if you hold HKSAR or BNO passport.
Can I build an extension to my property?
No, it's illegal. You have to make application in ward government office if you would like to alter or build an extension to your property.
Can I purchase property under the name of corporation?
Yes, however tax calculation is different from individual. Property price may be affected if you purchase under the name of corporation.
Can I purchase under joint ownership?
Yes, each owner must provide his own personal document during purchase. Each owner must do tax declaration by himself.
Under joint ownership, if a joint owner is dead, can the other joint owner inherit the ownership part?
No, the other joint owner cannot inherit the ownership naturally.
Can I open bank account in local Japan banks?
No. You cannot open bank account in any local Japan banks if you don't have right of abode, like visa of studies, working, spouse, or permanent one. All local banks require foreign applicants to provide local residence cards. We can wire your rental income to your home country bank accounts.
Can I instruct my tenant to wire rent payment to my home country bank account?
Impossible basically. Tenant does not bear expensive remittance fee (4,000-6,000 yen).
Can I ask tax bureau to send tax bill to my home country address?
No. Tax bureau send tax bill to local address only.
Can I instruct my tenant to pay management & maintenance fee and tax on behalf of me.
No. Tenant doesn't has the responsibility to pay any bill and cost on behalf of you.
Can I increase rent?
Tenancy agreement is generally 2-year term and renews every 2 years. Each party has the right to increase or decrease rent before agreement renewal. According to Japan Civil Conciliation Act (Article 24-2), tenant can refuse to pay new rent and the issue can be referred to court of arbitration. Owner has to provide evidence for rental increase, such as tax bill. If owner loses in the court, owners has to pay lawsuit fee of both sides. Japanese law tends to protect tenants. It's difficult to increase rent in Japan. If foreign owner is required to present in the court, you have to pay air ticket, recruit lawyer, translator. So we don't suggest owner to increase rent in Japan. JP Property, as a property management company, don't take any responsibility of rental increase and mediation.
How can I collect rent and manage property while living in home country?
We provide property management to our clients after settlement. Our property management service includes tenant recruitment, rent collection, remittance, problem-solving, moving out, room cleaning and renovation. Just pay 5% of gross rent, you can enjoy stable rental income in your home country.
Fund system
We keep 1-month rent as fund to pay management & maintenance fee and tax or any cost in case of emergency on behalf of you.
Frequency of remittance
You can choose to have rental income wired once per 3, 6 or 12 months.
We wire rental income in January, April, July and November.
What is "Real Estate Transaction Specialist"?
"Real Estate Transaction Specialist" is a Japan national qualification. Real Estate Transaction Specialist explains contract and put stamp on both contract and ""Important Matter Manual"". One out of 5 staff in a property company must be "Real Estate Transaction Specialist" by law. Our "Real Estate Transaction Specialist" can explain everything to you in Cantonese, Mandarin, Japanese and English.
What is maintenance fee?
Each owner of an apartment building must pay maintenance fee every month for building maintenance, like elevator, wall, pipes and construction.
After becoming a property owner, can I revise tenancy agreement, go inside the room without tenant's agreement, ask the tenant to move out, refuse to pay management & maintenance fee and tax and occupy public area of building?
Foreigner owner must obey Japan law. Don't cause inconvenience to neighbor and tenant. We hope every foreign owner can accept and understand law, habit and culture of Japan.
How can I make payment for property purchase?
You can go to Japan to sign contract and make payment. If you cannot go to Japan, you're required to sign authorization letter to appoint us to act as your agent to sign contract and wire the payment to our company's bank account.
I'm short of capital. Can I have settlement delayed?
No. All transactions are usually completed in 1 month. Once settlement is determined, you cannot have the date changed. If you cannot make rest payment on settlement, agreement will be terminated and you have to make compensation fee to the seller at maximum 20% of property price. Please ensure that you do have enough capital to make payment before submission of application form.
I don't trust any Japan property company, real estate transaction specialist and judicial scrivener. Can I ask lawyer of my home country to complete transaction?
No. All property transaction must go through property company with license. All contract and "Important Matter Manual" must be stamped by real estate transaction specialist. Property registration is usually handled by judicial scrivener. So your home country lawyer cannot handle property transaction in Japan.
Can JP Property guarantee that property price must increase and stable tenancy?
JP Property is a Japan property company with license. We provide brokerage and property management service only. We cannot guarantee or predict future matter for you.
Please ensure your own financial condition, do research on risk and purchase cost before making purchase decision. If you would like to apply mortgage from bank, please ask bank to have pre-approval.
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