For many globetrotters, Japan is a country that immediately feels like home. In fact, the country is so welcoming and serene, that many expats don’t think twice when it comes time to plant roots and settle down for the foreseeable future. As of 2020, there are about 2.89 million expats living in Japan, making up about 2.3% of the total population.
Whether you’re coming for work or study—or you’re moving to be closer to family—Japan’s housing market is friendly to English-speaking foreign nationals. And if you plan on staying in the country for an extended time, it may make sense to buy property.
Here’s what foreign nationals need to know about buying a house in Japan, and how to identify English-speaking real estate agents who can assist them.
Buying vs. renting in Japan
Planning a move to Japan? The country is friendly to foreign nationals from across the globe, and while there are some barriers to securing a residence in the country, it’s generally a simple process if you work with a great real estate agency.
Many foreign nationals looking to move to Japan face a critical choice—buying a property vs. renting. Thanks to Japan’s low interest rates, mortgage payments are often cheaper than rent for a comparable property. Expats often find that purchasing a home, then renting it out later, is a great way to make passive income. There are even tax benefits to buying a home, including depreciation deductions.
The decision to rent or buy ultimately comes down to your personal situation. Here are a few important questions to ask yourself before deciding one way or another:
How long will you be staying in the country?
Do you have stable employment lined up?
Do you have cash to pay for a home upfront?
Can you secure financing another way?
In general, the longer you plan on staying in the country, the more it makes sense to buy. That said, it’s important to remember that buying property in any country is an expensive endeavor. Moreover, even if you have the money to purchase a home of your own in Japan, you might not yet have the roots laid down to justify the purchase of property. Consider your situation carefully.
Investment vs. primary residence
Compared to other countries, Japan has few restrictions regarding investment properties. That means foreign nationals are free to buy both land and properties throughout Japan. Many foreign nationals buying homes in Japan are living in the country temporarily. It’s not uncommon for expats to purchase a property, live in it temporarily, and rent it out after they leave.
While non-residents can purchase investment properties in Japan, they must do so with cash. So, if you’re not planning to live in the property you buy, you have to come up with the cash up front, since there are limited financing options available for foreign nationals.
Speaking of financing, working with Japanese banks can be tricky. Generally, you need to be a Permanent Resident, hold stable employment for more than three years and make at least JPY 7 million per year to qualify for an investment loan. It’s often unattainable for newcomers to the country; however, it becomes an option for those who’ve lived in Japan for several years.
Work with expat-friendly real estate companies
For non-Japanese residents looking to buy a home in Japan, finding a capable real estate agent is critical. While not all agencies in Japan offer English support, some explicitly specialize in helping foreign nationals throughout the entire homebuying process. They’re ready to assist English-speakers not just find the right home for them, but also help them understand and review documents written in Japanese.
Here are six Japanese real estate companies that are happy to work with English-speakers looking to buy a home and put down roots in Japan:
Blackship Realty. Looking for a high-end home in Tokyo? Turn to Blackship Realty. They work with property-owners in the Roppongi, Azabu and Hiroo areas, providing English support. Whether you’re buying a primary residence or an investment property, this tech-driven agency with a completely bilingual staff is standing by to help.
Mitsui Fudosan Realty Co., Ltd. This real estate firm has had a national presence throughout Japan for over 30 years, boasting the highest number of brokerages throughout the country. They help homebuyers secure properties, including investment property, in several of the most popular wards in Tokyo, including Chiyoda, Shinjuku, Shibuya, Minato and Chuo.
Real Estate Japan. Searching for a permanent home in one of Japan’s several major cities? This agency specializes in properties throughout Japan, from Okinawa in the south to Hokkaido in the north. While many Japanese real estate agencies are foreigner-friendly, Real Estate Japan takes things a step further, providing special assistance to overseas nationals looking to buy a home in Japan. They even host regular seminars for foreign nationals at their Tokyo office, covering topics like how to purchase a home, how to apply for permanent residency and more.
Shingi Fusaya Real Estate. The Japanese counterpart to the Taiwan-based real estate company Sinyi, Shingi Fusaya Real Estate prides itself on its knowledgeable staff, with English support available. Their website is easy to understand, so browsing through listings is simple and straightforward. While most of their listings are based in Tokyo, the firm has a national presence with offices in Osaka, Kanagawa and Kyoto.
Sumitomo Real Estate Sales. While Sumitomo Real Estate Sales primarily offers services to customers coming from mainland Asia, they work with international customers from several different countries at their office in Tokyo. This agency is particularly helpful if you’re a buyer looking for investment property, since they also offer a full suite of property maintenance services in-house.
Tokyu Livable. Owned by the Tokyo Group, whose holdings include a major railway in Tokyo, this real estate firm specializes in buildings and investment properties located along their train lines. You’ll find offices in Fukuoka, Nagoya, Tokyo and Yokohama, as well as overseas branches in Hong Kong, Singapore and Taiwan. Some locations even have employees that speak English and other languages, providing consistent support for foreign nationals looking to buy in Japan.
These options don’t represent the entire market of English-friendly real estate agents in Japan. Nevertheless, they’re a good place to start your search for someone who can represent your best interests when it comes to buying a home in Japan.
The benefits of working with an English-friendly agent
Once you’ve found a real estate agent you feel comfortable working with, you can start the exciting process of finding a home in Japan. This is where the value of an English-friendly real estate agent comes into play. Here are just some of the benefits you can look forward to:
Market knowledge. A great agent will know the real estate market in the area(s) you want to live in, and can help you find a home that fits your budget and checklist. This saves you the trouble of exploring different areas by yourself, and it puts the duty of vetting homes for sale on someone who knows more than you do about local markets.
Situational help. Unless you’re already renting in Japan, chances are you’re trying to purchase a home before you move. If this is the case, you need someone who can represent your best interests in Japan while you focus on getting ready for your move. An English-speaking real estate agent will do that, so you can buy with peace of mind.
Paperwork assistance. As mentioned, there’s a considerable amount of paperwork that goes into buying property—especially if you’re an expat. An English-speaking real estate agent will guide you through each document smoothly, and make sure that you understand the information outlined in each. This is critical, since you should never sign documentation without a full understanding of what it represents!
Comfortable communication. Even if you’re well-versed in Japanese, working with an English-speaking realtor in Japan will give you a sense of comfort and confidence in the process. This is because it’s easier to understand real estate terms and phrases in the context of your native language, than trying to understand them in a second language.
When you finally find a house you love and decide to put in an offer, you’ll want the expertise of an English-speaking Japanese real estate agent on your side. From accepted offer to the final closing paperwork, their presence throughout the process will be invaluable.
Is your dream home in Japan?
Japan is an incredible place to live, for nationals and expats alike. Featuring a vibrant culture all its own, a wealth of employment opportunities and a foreigner-friendly housing market, buying property in Japan can be a rewarding endeavor. While the choice to buy or rent depends on your individual situation, working with a great real estate agent who offers English-speaking support can make the process easier. Research your options, start looking at listings in your target area and get ready to put down roots in foreigner-friendly Japan!
