Is Property in Japan a Good Investment?

Summary: What to expect when buying real estate in Japan

What to expect when buying real estate in Japan

What can an investor get from the real estate market in Japan?

As a foreigner in Japan you are not restricted in the purchase of real estate.

However if you are considering purchasing property in Japan it is wise to have your long-term or permanent visa agreed first.  If you don’t have a visa (and a decent job) you may find it impossible to secure a mortgage or other loan from a bank in Japan.

Of course if you have enough money to make a cash purchase this will be of no concern to you!

But, of concern as a foreigner there is still the fact that you could be refused right to remain in Japan if you do not have the correct visa type whether you own property there or not!

The cost of buying a house in Japan varies dramatically from region to region and depending on the type of real estate you are looking to buy!

Tokyo is the most expensive area for property by miles!  But there again, as you move further away from the centre of the city, or even just further away from a station, property prices begin to decrease progressively.

Furthermore, the older the property is, generally the cheaper the property.  And 30 years is old in Japan as property is constantly being rebuilt due to either earthquakes or re-optimisation of land.

If you move away from the major cities or consider areas where there is actually ‘depopulation’ you will get far more for your money when it comes to real estate.

Regions such as the Tohoku or Hokkaido are particularly cheap and in some areas where depopulation is seen as a big problem the local government has been known to offer land free to people who agreed to settle there for a fixed number of years.

To get a finer understanding of real estate prices in Japan and to find out what type of property you can get for your Yen, you should really conduct a nation-wide check on real estate prices and properties available.  The internet is a great place to start.

As Japan is earthquake prone country wide, buying in Japan can be considered risky and many people agree that the safest way to make an investment in real estate in Japan is through the purchase of land.

In big cities this can be especially profitable.  For example, if you owned a parking space in central Tokyo you could command huge rental income!  At the moment though, with Japan still suffering an economic struggle, purchasing real estate for short term investment gains could be considered unwise or risky.

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