This investment plan is provided by full collaboration with the Japanese real estate agency "Core Plus and Architectures Co., Ltd".

How to Buy Real Estate in Japan

1. Case Study and Property Proposal

We will propose the most lucrative properties to invest within your budget. A simulation of generated annual rental revenues, expenses, taxes, timing of the sale and the sale price will be provided in Excel sheet.

2. Purchace Agreement & Security Deposit (10%)

Once you have chosen a property, please send 10% security deposit and 3.15% agent commission (total 13.15%) to CORE PLUS AND ARCHITECTURES CO., Ltd. at Citi Bank Tokyo Brach.(*1)

⇓ (2 - 3 Days)

3. Signing on an Anonymous Association Agreement

The representative from Core Plus and Architectures Co., Ltd will meet the investor(s) either in Tokyo or in Dubai to check the investor’s identification (passport copy required) and the source of funds.

Also, we will request to sign an Anonymous Association (Partnership) Agreement for you to receive the tax benefits for non-residents in Japan. (It is possible to purchace property under your name without Anonimous Association Agreement, however you have to comply with tax regulation which require you to pay applox. 30 to 40% of your revenue.)

⇓ (On the same Day)

4. Closing the Contract with Seller

The contract administration will be performed by us, so the investor doesn’t have to do anything at this point. If you cancel the purchase after the date of signing the contract, 10% security deposit will not be refunded. 3.15% commission will be refunded but expenses will be deducted.

5. Remittance of the Balance

Please remit the balance two weeks before the balance due date. Obtaining loans from banks in Japan will not be available. (*4)

Normally, the balance due date is approx. one month after signing the contract.

⇓ (2 Weeks)

6. Balance Settlement and Owning Property

After the balance settlement (*2), you will start receiving the rent from the tenants. After this date, repairs and the tax will be responsible for the investor. (*3)

*1: In principle, please make a payment in Japanese yen.

*2: At the same time as the balance settlement, adjustment of the security deposit, payments for real estate acquisition taxes, property taxes and the fire insurance will be made. However, the above fee will be paid through an Anonymous Association and there is no need for the investor to remit afterward.

*3: The repair fees will be paid by an Anonymous Association using the rent revenues, therefore there is no need for the investor to remit additionally.

*4: Once you purchase a property in full amount in cash, you may be able to obtain a loan from the Japanese banks to buy the second property using your first property as collateral.

Why Investing in Japanese Real Estate? >>

Japan Properties for Sale >>

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Property Management | Managing Real Estate in Japan

1. Finding a Tenant

Many investment properties in Japanese market are on sale while 80-90% of those are being rented.

2. Receipt of Rent and Property Maintenance

There will be monthly rental incomes, however, the investor’s dividends will not be provided monthly if you have a anonimous association agreement(*5).

Management and oparation fees will be approximately 7% of the rent. Additional repair costs may be incurred. A leaking problem, drainage problem, air conditioner and bathroom equipment failures are mainly assumed.

3. Obtaining Monthly Report

The monthly reports regarding the Japanese economy, the real estate market trends and the purchased property’s status, its profit and loss will be provided.

The investor can check the balance on a monthly basis.

4. Dividends from Anonimous Association

The yearly dividend will be provided to the investor from a Silent Membership Organization.

Profits = rental incomes - (management fees + taxes + repair costs)

*5: Monthly dividend option will be available if the investor registers a property under his/her own name, however, it will not be recommended as 39% tax will be imposed on the capital gains at the time of the sale in addition to the recurring monthly currency exchange and remittance charges.

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Selling Japan property

1. Providing Exit Strategy on Property Sale

The calculations of the sale price, taxes and all other expenses related to the sale will be provided. 3.15% sales commissions and 20% capital gain taxes will be the largest fees among the selling expenses.

2. Finding a Buyer

The processing time will vary depending on your asking price. Generally it takes about four months from finding a buyer to converting it to cash. (*6)

3. To Cash In

The investment will be completed after paying the selling expenses and taxes and terminating the Anonimous Association Agreement.

4. Completing Investment

We will transfer the balance after converting it from JPY to your currency, to your specified bank account. (The bank account should be with a bank under the investor’s own name due to the Money Laundering Regulation.)

*6: In case you wish to get out of your investment immediately, it will be possible to do so in two to three weeks by selling your property to the specialized companies (in distressed properties) for about 70 to 80 percent of the regular price.

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