The Japanese Property Market for Foreigners

The property prices in Japan are high considering the terms of the mortgage are 100 years, which are very common. These mortgages are multigenerational and are indicators of what foreigners should prepare if they wish to enter the Japanese property market. There are no laws restricting the purchase of property by foreigners – market sentiment and procedures do make it difficult for foreigners.

Foreigners must be a permanent resident to apply for loans from Japanese banks and even then they must submit a financial guarantor. Japanese banks are still traumatized by the Decade Perdue (and the recent recession), so they ask for references and detailed financial records with loan applications. Foreigners who do not have long-standing relationship with a Japanese bank will note that it is virtually impossible to receive a loan.

Finally, the sickly nature of the Japanese housing market in the last twenty years makes long-term investment inadvisable at best.

All this explains why most Japanese families also want to rent their homes!

Finding real estate in Japan

If you really can afford to buy real estate in Japan, you can browse through directories available in real estate in bookstores and newsstands, or contact a local real estate agent. You might also consider consulting a large real estate agency to find a suitable property.