Someone sent me an email about investing in property in Japan, so I thought I would share some of my thoughts.
- Virtually impossible to get a housing loan, without a permanent resident visa. Loans not available for investment property.
- Language problems and no understanding of law in Japan. Even Japanese have trouble understanding the laws and regulations relating to property. I have lived in Japan for nine years and feel it would be frustrating having to deal with lawyers/banks/agents all in Japanese.
- Few people in Japan see property as a good investment like NZ and Australia, which I believe partly keeps prices from moving up.
- Property tax potentially high.
- High maintenance fees on apartments.
- Earthquakes. I have heard it is difficult to get earthquake insurance.
- Lack of proper government controls on building developments and construction. Currently there is a big scandal in Japan about this matter and they are pulling down buildings that were just complete.
- Declining population and almost neglible immigration, which is having no effect on the construction industry – especially in Tokyo.
- Buildings have no value after 30 years.
Sorry for all of the negatives. Here are some positives:
- Market very slowly increasing in value urban areas. Probably at the bottom now.
- Yen quite low.
- Land retains it value well.
- Some great deals in foreclosures market.
I heard Australians are buying property in Niseko, Hokkaido – a famous ski resort here.
Okinawa is also a beautiful place and could be worth looking into.
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