This question probably applies to any country, but I’m interested in hearing from people who have experienced it specifically in Japan.
I’m looking to purchase an apartment in Tokyo next year (location & price range & size) still under consideration) but am wondering about hidden costs other than the purchase, the realtor fees, etc.
Obviously many are Google-able but I’m curious to know any that are unexpected or maybe aren’t directly a result of buying a place, but are still related.
7 comments
Taxes, taxes, taxes.
You’ll get a discount on your income taxes when you buy new, for 10 years. (NOTE: After January 1st, 2024, you can only get the deduction if your home meets Eco standards, [see here](https://www.mlit.go.jp/jutakukentiku/house/jutakukentiku_house_tk2_000017.html#chirashi))
Property taxes are a bitch.
Earthquake/fire insurance. Monthly building management fees if a mansion. With a detached house, you will need to budget for repainting the external walls/roof every 10-15 years.
Yeah, taxes and building fees. If you are buying an apartment make sure you check how old the building is, as older buildings can have pretty expensive building maintenance fees. Especially if the building owner/group is struggling for cash.
I sold my apartment to buy a house after the building management company raised the maintenance fee by 40,000 yen a month because they were broke. Not cool.
Mansion owner here. The size of your unit in comparison with the rest of the units will dictate the cost of the monthly fee. Mine is about 95 平米, so above average in my building (there are 45, 60, 70, 83, 95, 110 and one massive 210 penthouse unit). I pay about ¥27,000 a month.
It should be stated before you buy, but management fees are usually kept low at the beginning. After the first scaffolding renovation (10-12 years after purchase), management fees usually increase as the building ages and needs more maintenance.
The parking space in the mansion is also a monthly fee (depending on the lot size and location of convenience). You can expect to pay ¥11,000 to ¥30,000 for a space depending on your building.
A small fee, but parking your bicycle in a mansion costs money. It’s only a 100 yen per month per space in my building. If you have an alcove space in front of your unit, it can be parked there for free.
Taxes
If it’s a condominium then monthly condominium fees that increase every five years or so. Make sure to find out how much money has been stored up so far for building renovations
Insurance
Of course you have to furnish the whole place
If anything breaks like the air conditioner, gas range, toilet etc. you have to pay for it instead of the landlord
Bad Neighbors
Make sure you budget ahead for wear and tear, even if it is a little bit every month right from the start.
-After 10 years your kitchen disposer will break, gas boiler will need to be replaced after 10-15 years.
-Did you get a floor that has a hard wax/ protective coating? If you aren’t careful your floor will be getting pitted and worn from chairs and everyday use etc.
-If it is a ‘Mansion’ you may also be paying monthly fees toward the building overhaul that will happen after 10 years.
A rainy day fund for things beyond your control is very useful!