Comparison of buying a home or condominium in Japan

Items to Verify When Looking for a Condominium
Items to Verify When Looking for a Condominium

Buying or Building a Home or Condominium in Japan

Items to Verify When Looking for a Condominium
Japanese houses are smaller compared to houses in most other developed countries. The need for heating in Japanese houses depends on the geographic location of the house. Northern and central Japan experiences several meters of snow during the winter, while southern Japan hardly experiences freezing temperatures in winter, but may become uncomfortable without air conditioning during summer.
In the urban areas, houses are built very close to each other, with narrow strips of plants for a garden. Apartment buildings with 10-15 stories can be found even in the suburbs. These houses offer most amenities despite lacking space.
The price of Japanese houses differs greatly between the urban and rural areas. In the cities, housing is very expensive compared to annual income, but the high cost is offset somewhat by low housing loan interest rates.
The cost of property depends on the region in which a person wants to invest. Tokyo is the most expensive, but prices gradually decrease as the distance to the nearest train station or city center increases. Older buildings are considerably cheaper than new ones. Housing in remote regions like Tohoku or Hokkaido or prefectures such as Shimane and Yamaguchi are relatively inexpensive. The most effective way to verify the price ranges for Japanese real estate is to inquire from an experienced and recommended real estate agent, or check nation-wide real estate websites on the internet.
In the current economic situation, it has become difficult even for the Japanese themselves to buy their own house in Japan. When making a housing loan, it is very important to have a Japanese guarantor who will repay your loan in case you fail to pay.
Japan is an earthquake and tsunami-prone country. Buying a house or condominium has an element of risk in it, since it could be destroyed anytime because no region is entirely safe from seismic activity. One of the safest investments in terms of earthquake risk involves purchasing an undeveloped lot, which can be lucrative in big cities when rented as parking space. (For example, the parking space for a single car in central Tokyo costs about Y50,000/month). However, the value of real estate in Japan, especially in the major cities, has been the subject of significant fluctuations, and is considerably risky.