Here are some example of basic questions that we REDS are frequently asked from non-Japanese clients, when considering to purchase a property in Japan.

Finding a house
-Can non-Japanese purchase a property in Japan?
-Is there any restriction or tax because of non-Japanese?
-What is the best way to find a house?
-What is the process to purchase a property?
-Can we see the inside of property?
-Can we do the inspection of the property?
-How long the property has been remaining in the market?
-What is the reason that the seller is selling this property?
-Is the property price reasonable?
-Is there any geographical risk?

Purchase negotiation
-How much will the property price can be discounted?
-How much will be the related costs?
-How will the buyer decide the buyer if there are several buyers?
-How long will it take for negotiation?
-How much the deposit should be?
-How long the purchasing process will take?
-Is furniture coming together or not?
-When is the earliest (or latest) handing over date?
-Until when the cancellation can be?
-Can I submit purchase offer for two properties?

Financial plan
-Can non-Japanese arrange a housing loan in Japan?
-Is PR necessary when arranging a housing loan?
-How do I apply the housing loan?
-What is the interest rate and how much will be the monthly payment?
-What kind of tax should I pay and how much will it be?
-How much will the brokerage fee can be discounted?
-Is fire insurance necessary, and how much will it be?
-When will be the remaining payment?
-How should I pay the remaining payment?
-Can I remit from the oversea’ s bank account?

Ownership transfer
-When and by whom the ownership registration will be applied?
-What documents are needed for ownership registration?
-When is the timing that the ownership will be changed?
-How long will it take for the ownership registration process?
-How can I know that the property is officially registered with my name?
-Can I register the ownership with my company’s name?
-Can I register the ownership with my wife’s name?
-From when can I start using the new property?
-Who will take care if the equipment does not work soon after the ownership transfer?
-How can we apply the lifeline (electricity/water/gas)?

If you are having a similar question, please feel free to send us email.

REDS’ local Japanese licensed agents will explain you details and advise from A to Z in English, without any consultation fee.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp

In Japan, the Building Standards Law was revised in 1981, and buildings constructed before that year are referred to as “old seismic” while those built after are called “new seismic”.

Buildings constructed before 1981 were designed to withstand earthquakes of up to magnitude 5 on the Japanese seismic scale, while those built after 1981 were designed to withstand earthquakes of up to magnitude 6-7 on the same scale.

The background of changing the Building Standards Law is Miyagi Prefecture Earthquake in 1978 (magnitude 5) which caused extensive damage due to collapsed buildings and damaged block walls, then the new earthquake resistance standards were introduced on June 1, 1981.

In 1995 January 17, the Great Hanshin-Awaji Earthquake (magnitude 7) killed 6,434 people. 90% of deaths were due to crushing by collapsed houses. A post-earthquake survey surprisingly revealed that 98% of the damaged wooden houses were built by the old earthquake resistance standards. If all of these buildings had met current seismic standards, there would have been fewer casualties.

The current new earthquake-resistance standards have been in effect since June 1, 1981, so if it’s a newly built or used home that’s less than 40 years old, it’s basically considered to have been built to the new earthquake-resistance standards. However, when purchasing a property that is older than that, it is important to pay close attention to earthquake resistance standards.

However, when purchasing a building that is nearly 40 years old, it is better to check the building confirmation date instead of the completion date or construction date. This is because whether a building is built according to old or new earthquake resistance standards is determined by the date the building certification application is received at the government office.

For example, even if the completion date of the building is October 1981, if the building confirmation date is October 1980, it is likely that the building was built to the old earthquake resistance standards. The building age is a number that indicates the number of years from the completion date to the present, so in some cases it may not be enough to determine the earthquake resistance standards based on that alone.

Especially when it comes to condominiums, the dealing properties are older than single-family homes. Originally, the structural lifespan of reinforced concrete construction is estimated to be over 100 years, so depending on the actual seismic resistance and management conditions, some condominiums may be fully livable even if built to the old earthquake resistance standards.

If you have any further questions or requests, please feel free to contact to the following e-mail address.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp

As you may know, the interest rate of housing loan is relatively very low in Japan according to the policy of government, which rate is generally around 0.2～1.0% when choosing a floating interest rate. But this kind of housing loan can be arranged only when purchasing a property for the residential purpose of the owner and cannot use the property for a rent. If the property will be rent out, the purpose of use will be treated as an investment, so the investment loan should be arranged which floating interest rate will be generally around 2.9～7.9%, instead of the lower interest rate housing loan.

Yield gap

Currently, the capitalization rate of investment property in the prime area of Tokyo is 2 to 4%. So when using an investment loan, there will no yield gap. Yield gap is a term used in real estate investment to describe the difference between the yield on a property and the yield on an investment loan. For example, suppose the yield on an investment loan is 2%, and the yield on a rental property is 4%. The yield gap in this case would be 2% (4% – 2% = 2%). This means that investors are willing to accept a 2% lower yield on an investment loan in exchange for the higher yield on a rental property.

Yield gap can be used to compare the relative attractiveness of different real estate investments. A higher yield gap indicates that the investment is riskier, while a lower yield gap indicates that the investment is less risky.

It’s important to note that yield gap is not the same as capitalization rate, which is another measure of the return on investment in real estate. Capitalization rate is calculated by dividing the net operating income of a property by its market value. Yield gap, on the other hand, compares the yield on a property to the yield on a risk-free investment.

Capital gains or Income gains

When you will decide which investment property to purchase, you need to clarify which will you target, capital gains or income gains.

Capital gains refer to the increase in the value of a capital asset when it is sold. In other words, it is the profit earned from selling an asset for more than its original purchase price. Almost any type of asset you own is a capital asset, including real estate. Capital gains are realized when you sell an asset by subtracting the original purchase price from the sale price.

Income gains refer to the profit earned from renting out a property. This type of gain is also known as rental income. Rental income is the amount of money received by the owner of a property from tenants who occupy the property.

In summary, capital gains are the profits earned from selling an asset for more than its original purchase price, while income gains are the profits earned from renting out a property. Both types of gains are taxable, but the tax rates vary depending on the holding period of the asset, the individual’s income level, and the type of property owned.

Apartment buildings or Condos

Real estate investment can be a lucrative way to generate income and build wealth. When it comes to investing in real estate, there are two primary options: apartments and condos. Here are some pros and cons of each:

Pros of Apartments buildings:

Multiple units:

An apartment building typically has multiple units, which means multiple streams of rental income. This can help to diversify your investment portfolio and reduce risk. If there are 10 units in the apartment, there will be no big impact when 1 or 2 residents move out.

Cons of Apartment buildings:

Less control:

You may have to deal with many difficult tenants or tenants who don’t take care of the property. You may have to take care of the troubles with neighbor lands, or the trouble between tenants.

Pros of Condos:

Easier to manage:

Condos are generally easier to manage than apartment buildings. This is because you only have to worry about the exclusive area of individual unit that you own, rather than the entire apartment building.

Cons of Condos:

Less rental income:

Condos typically have only one unit, which means only one stream of rental income. If 1 resident move out from condo, the income will be zero. This can make it more difficult to diversify your investment portfolio and reduce risk. And there will be a monthly payment for common area management fee and repair funds, which should be paid by the owner from the rental income.

In summary, apartment buildings owning multiple units can help to reduce vacancy risk. However, all the responsibility and risks of the building should be taken care by the owner. On the other hand, condos are generally easier to manage since there is a committee composed by all owners, but they have less rental income. Ultimately, the choice between investing in an apartment building or a condo depends on your investment goals, risk tolerance, and financial situation.

If you have any further questions or requests, please feel free to contact to the following e-mail address.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp

One of the most frequently asked question from our foreign clients is, “Is the price negotiable? How much can I get a property discount?”.

The most important fact in Japanese real estate market is, the seller will decide to whom to sell at how much.

If we think from the viewpoint of the seller, it is easy to understand how the buyer better act. Please imagine that you are a seller who wants to sell your house spent a long memorable time with your family.
You are planning to sell your lovely house because of some unavoidable reason. There is a buyer approached you as “I am a customer who will pay you the money. Ok, I will buy if you make this amount discount”.
This attitude is not well accepted in Japan. The selling price is “seller’s willing price to sell”, so this attitude is somehow ignoring the seller’s intention.
Instead, if a buyer approached the seller as “I respect your selling price, but because of the reason A & B, I wish I could buy at this discounted price which seems reasonable considered the current market situation.” This attitude is respecting the seller’s willing price, so the seller may also respect your request.

If a property is very much attractive, the location is good, the condition is good, and the price is good, there will be a competition between several customers even at the full price requested by the seller without any discount.
Generally the price will not go higher than the original selling price, so the seller will choose a buyer among the buyers only offered at full price, with another aspect than price to whom to sell. It means, buyers’ attitude and impression to the seller are very much important to be chosen from the seller.

When you visited your interested property, you will check the location and condition etc. of the property, but meantime the seller is checking buyers. The seller wants to make a good deal same as you without feeling uncomfortable. The buyers’ first priority may be to save money, but the seller’s priority may be to finalize the good memory of the property by selling to a buyer who can conclude the memorable property nicely.

Please imagine if you are a seller, and there are 2 buyers who are both willing to buy your property at the full amount of your willing price.

One buyer visited your house on time at the property viewing, and another buyer visited 15 minutes delay from the agreed time without advance notice. Which buyer do you have a good impression?

One buyer will pay the full amount using their cash, and another buyer will buy using a housing loan. In case of using a housing loan, generally there is a special cancel condition for the buyer that, the buyer can cancel the deal without penalty in case the loan was rejected from the bank. Which buyer do you prefer to deal, a cash buyer without cancellation risk, or a loan buyer having a cancellation risk?

Consequently, to be chosen from the seller, it is important to give your good impression as much as possible to be selected as the most trustable buyer without having a risk of dealing.

What if the case that there is no buyer appeared? If a property is not sold for a certain period at the seller’s willing price, then generally the seller will start think to reduce the price.
Sellers always want to sell the property at the highest possible price, so there is no reason to make a discount to a buyer who appeared just after started to sell. Normally the sellers will reply as “I just started to sell in the market and I want to see if there is a buyer who is willing to purchase at my willing price”. So even if you asked for a discount soon after the property has newly arrived in the market, the possibility of getting a discount is low.

If the property is not sold for a month, the seller may reduce the selling price, but there will be no big price drop such as half price. Generally the prices will be gradually reduce such as 198 million JPY -> 189 mil JPY.

Considered above points, the buyer’s choices are considered between
1. Buy immediately at a full price before another competitor appears.
2. Wait for certain period to get the lower price than the current price.

It is very difficult to make a judgement, since there is always a risk that another competitor will appear suddenly and buy at full price.

So what we always try is, to assist our clients to find an irreplaceable property which worth paying even at the full amount of the selling price. Of course, we will negotiate and find a chance to get any discount always, but the discount cannot be expected always. The disappointment of not being selected from the seller is big, rather than not getting any discount.

If you have any further questions or requests, please feel free to contact to the following e-mail address.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp

One of the most frequently asked questions from our non-Japanese clients is, “Can I get a housing loan at Japanese bank to purchase a Japanese property?”.

Mandatory condition to arrange a loan

The criteria of arranging a bank loan for non-Japanese differs to each bank, but here are some necessary conditions in all Japanese banks.

Mandatory condition 1: Need to have a Japanese address

If you lend your money to somebody, one of the biggest concerns/risks is that this person will escape without paying you, and you cannot contact this person anymore. It is same for banks, they will not arrange a loan to whom do not have a registered address in Japan.

Mandatory condition 2: Need to have a Job and income in Japan

If you lend your money to somebody, one of the biggest concerns/risks should be that this person does not work and does not have a capacity to return you the money. It is same for banks, they will not arrange a loan who do not have a stable job in Japan having certain amount of secured income.

Advantage condition to arrange a loan

The above conditions are mandatory to arrange a housing loan in Japan, and here are some advantage conditions if a lender is arranging a housing loan in Japan.

Advantage condition 1: Having PR (Permanent Residence)

If a non-Japanese is PR holder, banks think that you are considering staying in Japan for a long period, and most banks will treat you at totally same conditions with local Japanese. But some Japanese banks requires to have a certain level of Japanese communication skill to avoid a misunderstanding of the clauses when signing a loan contract with the bank.

Advantage condition 2: Spoused with a Japanese

If a wife or husband of non-Japanese is a Japanese, banks also think that you are considering to stay in Japan for a long period, and most banks will consider this point positively.

General condition to arrange a loan

If the mandatory conditions are covered (having a Japanese address and work in Japan), but without covering the advantage conditions (not PR holder and not having a Japanese wife), generally the following conditions are required from banks.

Standard condition 1: Cash payment for certain amount

In many cases, approx. 30% of the property price are required to pay by cash (payment will be 70% loan + 30% cash). Also the other costs such as tax and property registration are required to be paid by cash.

Standard condition 2: Certain length and salary amount of service in a same company in Japan

This depends on each bank, but generally 1 to 3 years period of work at a same company is required.

Example of necessary documents:

-Proof of income (certificate of income and withholding tax, salary slip for recent 3 months etc.）

-ID (Insurance card issued from company, Residence card, Driver’s license etc.)

-Personal stamp or signature

– Seal registration certificate

-Certificate of employment

-Certificate of residence

-Repayment schedule (if any, such as car loan)

Above is just a general trend if a non-Japanese applied a housing loan at Japanese banks.

If you have any questions, or want to know more details, please contact to the following e-mail address.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp

In Japan, it is widely said that the other costs will be 6-8% of the property price when purchasing a property.

We would like to see if this is truth or not, comparing with a simulation of the cost estimation.
The following is the example of the cost estimation that we similarly provides to our clients.

Property: Condo in prime area
Property price: 160,000,000 yen

Brokerage fee for this property
‐ At typical agents : 5,346,000 yen (3% of price + 60,000 yen + tax)
‐ At REDS : 2,673,000 yen
‐ You will save 2,673,000 yen at REDS 【50% discount】

Cost estimation (in case of loan)
・Brokerage fee (above) ・・                       2,673,000 yen（To REDS）
・Fixed asset tax ・・・                 approx. 　 90,000 yen（from Oct1 to Dec31)
・Repair reserve fund ・・・        approx. 　 30,660 yen（from Oct1 to Nov30）
・Common area management fee approx. 　 21,650 yen（from Oct1 to Nov30）
・Stamp duty・・・・・・ 　                          60,000 yen（To government）
・Housing loan handling fee         approx.  3,520,000 yen（To bank, 2.2% of 160 mil loan)
・Bank administrative fee             approx.        55,000 yen（To bank)
・Stamp duty for housing loan                        60,000 yen（To government)
・Property Registration                 approx.   650,000 yen（To Lawyer / Judicial Scrivener）
・Fire insurance・・・・             approx.   350,000 yen（To insurance company, depends on the option you will choose）

Total cost estimation: approx. 7,510,310 yen  (at 50% discounted brokerage fee)

 *Please understand that this is a simulation and may differ according to actual conditions.

 *After few months from the property ownership registration, there will be a payment for “Real Estate Acquisition Tax” to government which is not included to this estimation.

If there is no discount for brokerage fee, then the total cost will be 7,510,310 yen + 2,673,000 yen = 10,183,310 yen, which is approx. 6.4% of the property price if you purchased this property from other typical agents.

For this property, we REDS can make 50% discount for brokerage fee, therefore the total of other costs is 7,510,310 yen, which is approx. 4.7% of the property price if you purchased from REDS.

There are properties that we REDS can offer 100% discount for brokerage fee, which depends on the type of the property. If this property was so, the total cost will be 7,510,310 yen – 2,673,000 yen = 4,837,310 yen, which is approx. 3% of the property price if you purchased at REDS.

As a result, the rate of other costs for this property can be said as,
At REDS (50-100% discount) : 3 – 4.7%
At typical agents (no discount) : 6.5%

Since the property price is very high, t is obvious that you will save a big cost when you chose REDS.

For your reference, here are the characteristics of each cost.

・Brokerage fee
Brokerage fee is the biggest occupancy of the total costs, so it is important to choose reliable agent but saving the brokerage fee as much as possible. All other costs are mostly same wherever agent you choose.

・Fixed asset tax
This is going to pay to the seller, since the seller had already paid the annual amount. So the date when you become the owner until the end of the year (December 31) will be calculated and paid to the seller.

・Repair reserve fund
Normally, the seller already paid 2 months ahead beforehand. So this amount will be also calculated and paid to the seller from the date you become the owner.

・Common area management fee
Normally, the seller already paid 2 months ahead beforehand. So this amount will be also calculated and paid to the seller from the date you become the owner.

・Stamp duty
The stamp should be purchased and attached to the original of the sales contract, which amount depends on the property price.

・Housing loan handling fee
This is only needed when you purchased using a housing loan. The cost depends on which bank and plan to choose, but 2.2% of the property price is one of the standards. There is an option that this amount can be lower but the interest will be higher.

・Bank administrative fee
This also depends on the bank, this fee will not be charged at some banks.

・Stamp duty for housing loan
The stamp should be purchased and attached to the original of the loan contract.

・Property Registration
This is to register your ownership, including tax and the fee to the layer who register the ownership.

・Fire insurance
It depends on the option you will choose. Generally 5 years fire insurance and add earthquake insurance as an option.

If you have any questions or want to know more details, please contact to the following e-mail address.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp

When purchasing a mansion (condominium or apartment) in Japan, the repair fund, also known as a reserve fund or maintenance fund, is a critical aspect to consider. The repair fund is a pool of money set aside by the condominium management association or building management company to cover future repairs, renovations, and maintenance of the shared areas and facilities within the complex.

You may feel lucky if the monthly payment of repair fund is cheap when you are purchasing a mansion, but if it is lower than as it should be, there will be a big future risk.

Here are some reasons why the repair fund is important:

-Shared Facility Maintenance: In a mansion, various amenities and facilities, such as elevators, common areas, roofs, and building exteriors, are shared by all the unit owners. The repair fund ensures that there are sufficient funds to maintain and repair these shared facilities over time.

-Long-Term Planning: The repair fund allows for effective long-term planning for major repairs or replacements that are not covered by regular maintenance fees. It helps prevent sudden financial burdens on individual owners when major repairs are needed.

-Preserving Property Value: Proper maintenance is essential for maintaining the overall value of the property. A well-maintained building and common areas are more attractive to potential buyers or renters, and this can positively impact the property’s resale or rental value.

-Legal Requirement: In Japan, there are legal requirements for condominium management associations to establish and maintain a repair fund. The amount of contributions to the fund is typically determined based on the size and type of the building, as well as the estimated costs of future repairs.

-Emergency Repairs: Unexpected emergencies, such as damage caused by natural disasters or accidents, may require immediate repairs. Having a repair fund ensures that there are funds available to address such urgent situations promptly.

-Avoiding Special Assessments: Without a sufficient repair fund, the management association might need to levy special assessments on unit owners to cover major repair costs. These special assessments can be financially burdensome and may cause disputes among residents.

-Peace of Mind: Knowing that there is a well-funded repair reserve gives residents peace of mind that the building will be properly maintained and that their investment is protected.

If we talk about the legal lifetime of mansion, it is 47 years for standard RC and SRC made building according to the Japanese building standard law. But it is said that the building can be practically used for more than 100 years if the repairs, renovations, and maintenance of the building are done property.

The concept of modern apartments or mansions in Japan began to gain popularity after World War II due to the increased urbanization and housing demands. The first apartment buildings that resembled what is now referred to as “mansions” were built around the 1950s.

As for the average building age of mansions in Japan, it can vary significantly depending on the specific area and the building’s maintenance and renovation history. Many older mansions still exist and are in use, while others have been torn down or rebuilt. However, currently the mansions in Japan could be around 30 to 40 years old on average. So it can be imagined that after 20 – 30 years, there will be many mansions which ages are 50-60 years.

If we think to reconstruct a mansion in Japan, it needs to be complied with certain conditions and obtain approvals from the building association and relevant authorities. Basically, 4/5 association members should agree on the reconstruction, otherwise the reconstruction cannot be done. Even if it was agreed from the association members, specific requirements may vary depending on the location and local regulations.

Here are some common conditions that are generally required for reconstruction:

-Architectural Plans: You will need to hire a licensed architect to create detailed architectural plans for the reconstruction. These plans should comply with local building codes and zoning regulations.

-Building Permits: You must obtain building permits from the local government or municipality. The permit application process may involve submitting the architectural plans, construction details, and other relevant documentation for approval.

-Compliance with Building Codes: Ensure that the reconstruction adheres to the building codes and standards set by the government. This includes regulations related to safety, fire prevention, structural integrity, and energy efficiency.

-Environmental Regulations: You might need to adhere to environmental regulations, especially if the mansion is located in environmentally sensitive areas like coastal regions or near forests.

-Historical Preservation: If the mansion has historical significance or is located in a designated historical area, you may have to comply with additional preservation guidelines.

-Height and Boundary Regulations: Check the height restrictions and boundary regulations in the area to ensure the reconstruction does not violate any limits.

-Waste Disposal: Have a plan for waste disposal during the reconstruction process and after completion.

-Community Consultation: In some cases, you may need to consult with the local community or obtain their consent for the reconstruction, especially if the project might affect the neighborhood significantly.

-Financial and Legal Obligations: Be prepared to fulfill any financial and legal obligations related to the reconstruction, such as taxes, insurance, and contractual agreements.

Considered these hurdles of reconstructing mansion in Japan, it is not easy to rebuild a mansion although the building age exceeded the legal lifetime year.

To keep the practical lifetime of mansion longer as much as possible, repairs, renovations, and maintenance are mandatory.

In conclusion, when purchasing a mansion in Japan, it’s essential to review the condominium documents and financial statements to understand the status of the repair fund. Assessing the adequacy of the repair fund can help you make an informed decision about the overall financial health of the building and potential future expenses.

Please consult with REDS to ensure that you are well-informed about all aspects of the property’s maintenance and financial obligations before making your purchase.

If you are thinking to invest to real estate market, you may think which county the best choice for you.
If the Japanese real estate market can be one of your choices, I would like to explain you the advantages and disadvantages of investing to Japanese real estate market from my personal point of view.

There are 2 main advantages to invest to Japanese real estate market.

Advantage 1. There is no governmental restriction or extra taxes because of non-Japanese.

Japanese government do not set any restriction to foreigners owning real estate in Japan.
Some countries set extra tax or limit some real estate deal for foreigners, there is no extra tax or costs for foreigners, everyone can buy Japanese real estate at the same condition as local Japanese.

For example, some countries that have restrictions on foreign ownership of property include Australia, Britain, Hong Kong, Singapore and Switzerland.

In Australia, foreigners can buy property in Australia but typically you need to be a permanent resident or citizen. The property needs to be categorized as an investment and you need to get government approval. For non-residents or temporary visa holders, it’s legally necessary to buy non-residential property in Australia after getting permission from the Foreign Investment Review Board (FIRB). You will also need to provide copies of your personal identification documents (passport), proof you qualify to buy a property under FIRB rules, proof of legal residence in Australia, and documents to prove you’re creditworthy (usually a credit check, bank statements, proof of your wages, tax returns for the last three years or a letter from your employer).

In Singapore, foreigners can buy property in Singapore but there are certain restrictions. For example, foreigners are not allowed to buy landed properties without approval from the Singapore Land Authority. Additionally, foreigners are subject to additional buyer’s stamp duty (ABSD) when purchasing residential property in Singapore.

In Hong kong, foreigners can buy property in Hong Kong but there are certain restrictions. For example, foreigners are subject to additional stamp duty when purchasing residential property in Hong Kong.

As for other countries such as like Croatia, Turkey and South Korea, land ownership is open only to certain nationalities because of reciprocity agreements.

Advantage 2.Weak Japanese Yen

According to the historical chart of the daily U.S. Dollar – Japanese Yen (USDJPY) exchange rate, as of June 2023, the exchange rate is around 140 JPY per USD. In June 2018, it was around 110 JPY per USD as well. In June 2016, it was around 106 JPY per USD. It means that, to purchase a property which costs 100mil Japanese Yen, you needed to prepare 943,400 USD in June 2016, but you need to prepare only 713,400 USD in June 2023 to purchase the price property in Japanese Yen. It is not exaggerated to say, now is around 25% bargain sale of Japanese real estate compared with that period.

There is also a disadvantage for Japanese real estate market compared with other market from my personal point of view.

I feel that there are language and culture barriers, so it is not easy for non-Japanese to control everything by themselves. The deals are following Japanese real estate law, all original documents are written in Japanese, and there are Japanese business habits.
So I believe the most important point to make the successful deal is, to find a reliable Japanese agent who can work on behalf of you.

We REDS support Japanese local customers mainly, we have experienced agents only who deal daily in Tokyo, and we provide totally same services with totally same fees to foreigners.

Now is the good timing to invest to Japanese market, Japanese government removed immigration restriction from May this year, so now everyone can come to Japan to check properties.

We REDS are pleased to assist you searching a property based on your requirements, arranging a property tour, and negotiating prices with the sellers on behalf of you in Tokyo.

One of the most frequently asked questions from our customers is, will the brokerage fee be discounted or free.

Our company’s discount criteria is very open and clean as below.

– If the property price is higher than 50 mil yen, the brokerage fee will be discounted 50% at least in any cases.

– If the property price is lower than 50 mil yen, the brokerage fee will be discounted based on that property price as below at least.

For example,

property price 40 mil yen -> 40.4 % discounted brokerage fee compared with typical real estate companies

property price 30 mil yen -> 31.3 % discounted brokerage fee compared with typical real estate companies

property price 20 mil yen -> 22.7 % discounted brokerage fee compared with typical real estate companies

property price 10 mil yen -> 16.6 % discounted brokerage fee compared with typical real estate companies

– If the seller is a real estate company, then the brokerage fee will be FREE in the most cases.

For further details, please contact to the following e-mail address.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp