Frequently Asked Questions: Japanese Real Estate Investment for Foreigners

Q1: Can foreigners buy property in Japan?

Yes. Japan has no restrictions on foreign property ownership. Non-residents can purchase real estate with the same rights as Japanese citizens. No visa or residency is required.

Q2: Do I need to visit Japan to buy property?

No. The entire purchase process can be completed remotely:
– Property selection via online listings and virtual tours
– Contract signing via Power of Attorney
– Payment via international bank transfer
– Property management handled by Ace Inc.

Q3: What is the typical rental yield for Tokyo investment properties?

One-room apartments in Tokyo typically yield 4-6% gross annually. Net yields after management fees and taxes range from 3-5%. Regional cities offer higher yields but carry more vacancy risk.

Q4: What types of properties do you recommend?

We specialize in one-room apartments (1R, 1K) because:
– Lower entry price (¥10-30 million / $70,000-$200,000)
– High rental demand from single workers
– Easier management than family-sized units
– Stable cash flow with minimal vacancy

Q5: What are the costs of buying property in Japan?

Typical costs for buyers:
– Property price: 100%
– Real estate acquisition tax: 3-4%
– Registration and stamp duty: 1-2%
– Agent fee: 3% + ¥60,000 + tax
– Total additional costs: approximately 7-10% of property price

Q6: Is financing available for foreign investors?

Limited. Most Japanese banks require residency for mortgages. However:
– Some banks offer loans to foreign residents
– Overseas banks (Singapore, Hong Kong) may finance Japanese property
– Cash purchases are most common for non-residents

Q7: How does property management work?

Ace Inc. provides full property management for overseas owners:
– Tenant screening and placement
– Rent collection and overseas transfer
– Maintenance coordination
– Monthly reporting in English/Chinese/Korean
– Tax filing support

Q8: What taxes do foreign property owners pay?

Key taxes for non-resident owners:
– Rental income tax: 20.42% withholding
– Property tax: 1.4% of assessed value annually
– Capital gains tax: 30% (short-term) or 15% (long-term, 5+ years)
Tax treaties may reduce rates depending on your country of residence.

Q9: How long does the purchase process take?

Typical timeline:
– Property selection: 1-4 weeks
– Offer and negotiation: 1 week
– Contract signing: 1 week
– Settlement and registration: 2-4 weeks
Total: approximately 1-2 months from start to finish

Q10: Why choose Ace Inc.?

– 29 years of industry experience
– 400-500+ completed transactions
– Specialized in international investors from China, Hong Kong, Korea
– Full service: Purchase → Leasing → Management
– Multilingual support: Japanese, English, Chinese, Korean
– Based in Tokyo with nationwide coverage

Ready to start your Japanese real estate investment?

Contact us today for a free consultation.

Email: info@aceinc.jp
Phone: 03-5725-0285