So, I just moved. I like the place but it made me think about buying my own… maybe.
Definitely not as an investment, just because I would like to have one of my own.
This would be probably next year but since I am sure it is not an easy task I was wondering the following.
To you who have bought an apartment, was there any extra costs that came up that was a total surprise? Im thinking about for example property of land land tax or other fees.
Also, since I live in Osaka I am thinking about a newly built one.
However I don’t really know if it’s worth moving in to a brand new mansion as compared to one that’s maybe 3-4 years old. The decrease of value in my mind would be less for an older apartment as compared to a brand new one.
Seems to me that buying a new apartment in Japan is like buying a new car. As soon as you put the key in, the value plummets.
Also, have to be honest.
I would much more prefer an English speaking agent in this case since it’s a pretty big step and involves (I assume) a lot of paperwork and legal jargon.
In Osaka, any tips???
Thank you in advance and have a great day
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So I bought a condo in Fukuoka. Here’s my experience.
If you buy a used place you will still need to pay the agent’s commission (3% of the selling price or 60,000 yen, whichever is higher, plus sales tax on the commission). New units also have to pay 10% sales tax on the cost of the unit itself (not for used ones).
If used, check if the previous owner has any outstanding balance on their HOA fees. If they do, that should be deducted from the sales cost of the condo. If there are outstanding fees, you may end up paying them. Check how much is in the HOA repair reserve and management funds. If the balance is low and major repairs for the building are needed, they may not get done because the repair fund is empty. Avoid self managed properties (unless it’s 4 units or less), the building should have a reputable management company handling the day to day operations and upkeep.
Taxes are based on the land value and age of the building. The older the building the lower the taxes. Once a building is more than 20-30 years old, you’re just basically paying for the land value on the taxes.
I bought an older fixer upper because it was very below market, but quite spacious, top floor, with a huge veranda and in an excellent part of the city. But I already had a place to stay, until it was done, so I had time to hire out a renovation company and pick out all the materials and components I wanted in my unit. Floorplan were made to my specifications, and the materials I used were much nicer than what new buildings are being made with. Plus I even got to add insulation to the walls (contractor thought I was crazy), but it paid off in spades both for soundproofing and staying warm last winter. I ended up spending less than buying a new or already renovated condo, of similar or smaller size, and got a much nicer place.
Can you afford to buy cash? Because with only 1 year work history even with PR/citizenship you’re not going to be getting a mortgage.
I found [Landed: Japan](https://landedbook.com/landed-japan/) to be a pretty easy read.
[Legal Issues in Japanese Real Estate Investment](https://resources.realestate.co.jp/service/book-on-legal-issues-in-japanese-real-estate-investment/) was a little harder to digest.
Chipping in on the extra cost, the broker basically laid out all the costs I will be expecting and that is obviously early on the process as well. A year or two after purchase, no surprises. I think this is the law for brokers so you can go with any.
Tax refund was surprisingly nice, 1% remaining loan for 13 yrs.. With the mortgage rate below 1% if you can get approved on, you essentially don’t pay interest for those period.