Admittedly, this topic is geared for longer-term residents of Japan, and most likely those with Japanese spouses. Try as one might, it is still difficult for foreigners to apply for (and be granted) a housing loan. However, there are an increasing number of options available for financing. This, signs of a bottom in land prices, and hints of an end to Japan's zero-inflation rate policy might make now a good time to look at buying house or condominium, if that's in your future plans.
Thus, I thought I'd pass on a little advice from a handy booklet we picked up recently - entitled "No Mistakes - Seven Tips When Buying Your First Home," written by a veteran Japanese real estate agent. He first lists the four most common misconceptions about the Japanese real estate market:
1) Each real estate agent has a different inventory of homes/condos that only *they* have access too.
Not true. Like the United States' MLS listings, Japan also has a national database of real estate listings, called REINS (Real Estate Information Network Service). All Japanese real estate agents registered with the system have access to the data online or by fax.
2) The best way to get good information about what houses/condos are on the market is to visit lots of real estate agents.
Also not true. If all agents have access to the same listings, they can essentially all provide you with the same information.
3) You can build any kind of house you want on land you own.
Nope. There are various zoning regulations in Japan that prevent the construction of some types of buildings in some areas. A three-storey house, for example, may be prevented in some areas.
4) No down payment loans are a good idea.
Once again, the likelihood of a foreigner being approved for this type of loan is slim to zilch, but if your spouse is considering one of these, be aware - many loans in Japan do not feature fixed interest rates, and some include balloon payments or large payments due at bonus time. Read your loan contract carefully.
Okay, without futher ado, then - here are the seven tips.
1) Choose a reliable real estate agent.
What's one way to do this? Check the Japanese listings (usually newspaper inserts or one of the proliferating free magazines available) for the real estate agent license information, which is usually formatted like: "Hyogo-ken Chiji (3)-1234" (Hyogo Governor <3>-1234) The small number in parenthesis is the number of times the real estate agent's license has been renewed. As all agents are required to renew once every five years, a number (3) indicates that the agent has been in business for at least one year after two renewals. While this is not an indicator of quality, it will tell you, generally, how long the agent has been in business.
2) Be careful when using the telephone to inquire about real estate listings.
Most people find a listing they like, call up the agent, and inquire about the plans. However, they usually end up regretting this: real estate agents are extremely persistant and will call many times a week or even a day, even if you purchase a home with another agent! (Their sales quotas are extremely tight.) Most real-estate agents have caller-ID systems on their phones, and will find out your phone number even if you don't tell them. Dial "184" (no ID) when you call to inquire about real estate listings.
3) Be careful which real estate salesperson you choose.
Many are quite persistant, again, and will ask you your name, telephone number, and address before even giving you the information you need. Instead of offering this information first, just ask "Where is the home/condo listed on page XYZ of the leaflet your first sent out?" (In Japanese, of course.) Agents which do not disclose this information without getting your personal details are not worth dealing with, the author says. He also recommends using email to correspond with agents instead of the phone.
4) Be careful when meeting the salesperson for the first time.
A good real estate salesperson will first talk with a customer about what they want in a house, what their budget is, and other information before introducing a particular listing. Thus, even if you visit a real estate agent with a particular listing in mind, don't trust an agent that launches into a hard-core sales presentation the minute you walk in the door. Chances are they don't have your best interests in mind, just the sale.
5) Avoid salespersons that push too fast, including lines like "If you don't hurry, someone else is going to buy this house/condo."
This is really just a sales technique to push you into buying faster. Also, avoid salespersons who introduce listings over your budget and try and talk you into borrowing more than you can afford.
6) Read real-estate ads carefully.
Many times, fake ads that are really too good to be true are put in to lure customers into an office. When a client arrives asking about that particular listing, the agent simply says that it has already been sold, but they have a similar house that is "just as nice" for a little bit more money. Ads of this type are called "hikimono".
7) Finally, one must also be careful about real estate listings online.
In many cases, agents are good about putting up information but often forget to update it. Thus, many of the listings you see might be old or already sold. Be sure and call ahead of time to see if the listing your are interested in is still available.
Armed with this information, you'll hopefully be a bit wiser, and find house-hunting just a little bit easier.
Interested in the person who wrote this booklet? His name is Masaru Osawa, and he owns is own real estate firm in the Century 21 Group (called Sakura Housing). He is currently located in Nishinomiya in Hyogo prefecture (Kansai), and can be reached at 0120-63-8450. (www.sakura21.com) I must add that there is no indication anywhere that he speaks any English or serves foriegners - I translated the information from the Japanese booklet myself.
By Wendy J. Imura. Copyright 2006.