First Steps to Buying a House in Japan: Where to Begin
If you’re considering buying property in Japan, you’re probably wondering where to even start. The Japanese real estate market can seem opaque to outsiders, with unfamiliar processes, language barriers, and cultural differences. This guide covers the first steps buying house Japan requires, breaking down the entire journey from initial planning to receiving your keys.
📅 Last Updated: February 2026
| Quick Reference | Details |
|---|---|
| Foreign Ownership | Fully permitted, same rights as Japanese citizens |
| Total Timeline | 4-9 months from start to move-in |
| Transaction Costs | 8-12% of property price |
| Physical Presence | Required for contract signing and registration |
| Visa Granted | No - property ownership does not grant residency |
Good news first: foreigners can freely purchase property in Japan without nationality or residency restrictions. You’ll have the same ownership rights as Japanese citizens for freehold property. That said, property ownership alone won’t grant you a visa or residency rights—you’ll need to arrange those separately if you plan to live in Japan.
Understanding Your Purpose: Investment vs. Residence
Before diving into property searches, clarify why you want to buy. Your purpose shapes every subsequent decision.
Personal Residence
If you’re buying a home to live in, prioritize:
- Commute convenience (proximity to train stations)
- Local amenities (schools, hospitals, supermarkets)
- Neighborhood character and safety
- Space requirements for your family
Investment Property
If rental income or capital appreciation is your goal, focus on:
- Rental yield potential (Tokyo’s 23 wards average 4-6%)
- Tenant demand in the area
- Building age and management fees
- Resale potential
Vacation Home
For occasional use, consider:
- Access from airports and major cities
- Year-round appeal or seasonal value
- Property management when you’re away
- Local rental regulations if you want to offset costs
💡 Pro Tip: Many foreign buyers start with an investment property to learn the market before buying a personal residence. This approach lets you build relationships with agents and understand the process with lower emotional stakes.
First Steps Buying House Japan: Setting Your Budget
The purchase price is just the beginning. Budget 8-12% extra for transaction costs.
Transaction Cost Breakdown
| Cost Type | Amount | Notes |
|---|---|---|
| Agent Commission | 3% + ¥60,000 + 10% tax | For properties over ¥4 million |
| Registration & License Tax (Land) | 1.5% of assessed value | Reduced rate for residential |
| Registration & License Tax (Building) | 2.0% of assessed value | Standard rate |
| Real Estate Acquisition Tax | 1.5-4% | Lower for residential |
| Stamp Duty | ¥5,000-¥480,000 | Based on property price |
| Consumption Tax | 10% on building only | Not applied to land |
| Judicial Scrivener Fees | ¥50,000-¥200,000 | For registration handling |
Example: A ¥40 million property will cost approximately ¥43.5-43.6 million total including all fees and taxes.
Deposit Requirements
Expect to pay 5-10% of the purchase price as a deposit when signing the purchase agreement. If financing, you’ll also need funds for the mortgage application process.
According to GaijinPot’s housing cost analysis, the average custom-built home in Japan costs ¥43.2 million, rising to ¥49.3 million in major cities. Average land prices sit around ¥19.3 million.
First Steps Buying House Japan: Research Locations
Location research is where many first-time buyers rush and later regret. Spend adequate time on this phase.
Key Factors to Research
Train Access: In Japan, proximity to train stations significantly impacts property values and daily convenience. Properties within 5-15 minutes walking distance typically command premiums but offer better resale potential.
Hazard Maps: Check official hazard maps (ハザードマップ) for:
- Flood risk zones
- Landslide potential
- Tsunami evacuation areas
- Liquefaction probability
Elevation: Higher ground generally means lower flood risk. Check elevation data, especially for properties near rivers or coastal areas.
Neighborhood Character: Visit at different times of day. A quiet afternoon might mask evening traffic noise or reveal a different atmosphere after dark.
Future Development: Check municipal plans for upcoming infrastructure, commercial development, or zoning changes that could affect property values.
💡 Pro Tip: Use Google Maps Street View to virtually explore neighborhoods before visiting. Look at the condition of surrounding buildings, street cleanliness, and overall maintenance—these indicate neighborhood pride and stability.
How to Find a Bilingual Real Estate Agent
For non-Japanese speakers, finding a bilingual agent is the critical first step. This person will guide you through contracts, negotiations, and the mountain of paperwork.
Where to Find English-Speaking Agents
- Real Estate Japan (realestate.co.jp/en) - Major portal with English listings
- GaijinPot Apartments - Specializes in foreign residents
- Expat community recommendations - Facebook groups, Reddit r/japanlife
- Our directory: English-Speaking Realtors in Japan
What to Look for in an Agent
- Experience working with foreign buyers
- Willingness to explain the process thoroughly
- Knowledge of your target area
- Ability to provide contracts and documents in English
- Patience with your questions
Questions to Ask Potential Agents
- How many foreign clients have you helped purchase property?
- Can you provide the Important Matters Explanation in English?
- Do you work with a bilingual judicial scrivener?
- What is your commission structure?
According to experienced buyers, finding an English-speaking agent through expat community recommendations often yields better results than cold searching online.
Understanding Property Types in Japan
Freehold vs. Leasehold
Freehold (所有権 - Shoyuken): You own both the building and the land outright. This is the most common and preferred ownership type for houses.
Leasehold (借地権 - Shakuchiken): You own the building but lease the land. While cheaper upfront, you’ll pay ground rent and face restrictions on selling or rebuilding.
Building Types
Detached House (一戸建て - Ikkodate): Standalone homes with private land. You’re responsible for all maintenance.
Mansion (マンション): What Western countries call condominiums. Shared ownership of common areas with monthly management fees.
Apartment (アパート): Typically refers to smaller, wood-frame apartment buildings. Usually cheaper but may have older construction.
The Complete Property Buying Timeline: Week-by-Week
The journey from “I want to buy property in Japan” to receiving keys typically takes 4-9 months. Here’s a realistic breakdown:
Phase 1: Preparation (Weeks 1-4)
Week 1-2: Define Purpose and Budget
- Clarify investment vs. residence goals
- Calculate total budget including 8-12% transaction costs
- Determine financing needs
Week 2-4: Research Locations
- Identify 2-3 target neighborhoods
- Check hazard maps and infrastructure
- Visit areas if possible
Week 3-4: Find Your Agent
- Contact bilingual agents
- Interview and select your representative
- Establish communication expectations
Phase 2: Financing (Weeks 4-8)
Week 4-8: Mortgage Pre-Approval If financing, apply for pre-approval from Japanese banks. Popular options for foreigners include:
- SMBC Prestia
- MUFG
- Shinsei Bank
- Suruga Bank
Requirements typically include:
- Long-term visa (work visa, spouse visa, or permanent residency)
- Stable income history (usually 3+ years in Japan)
- Good credit history
- Ability to make a substantial down payment
For detailed financing options, see our guide: Getting a Mortgage in Japan Without Permanent Residency
Phase 3: Property Search (Months 2-3)
Work with your agent to view properties matching your criteria. For each property, note:
- Construction date (post-June 1981 preferred—see earthquake standards section)
- Building condition and recent repairs
- Management fees and reserve fund (for mansions)
- Neighborhood observations
Phase 4: Negotiation and Contract (Months 3-4)
Submit Letter of Intent (Kaitsuke Shomeisho) A non-binding document stating your proposed purchase price and conditions.
Review Important Matters Explanation The Juyo Jiko Setsumeisho is a 20-100 page disclosure document covering:
- Property details and boundaries
- Building restrictions and zoning
- Utilities and infrastructure
- Management rules (for mansions)
- Known defects or issues
Sign Purchase Agreement You must be physically present in Japan for this step. Pay the 5-10% deposit.
Phase 5: Inspection and Final Approval (Months 4-5)
Property Inspection (Recommended) Hire a licensed inspector to check:
- Structural integrity
- Water ingress and moisture issues
- Building tilt measurement
- Electrical and plumbing systems
Final Mortgage Approval Submit formal mortgage application with all required documents.
Phase 6: Settlement (Months 5-6)
Final Payment Pay the remaining balance plus all transaction fees and taxes.
Ownership Registration The judicial scrivener (shiho shoshi) submits registration to the Legal Affairs Bureau. Title deed arrives in approximately 2 weeks.
Receive Keys Set up utilities (electricity, gas, water). If you’re a non-resident purchasing investment property, submit notification to the Bank of Japan within 20 days.
Essential Documents You’ll Need
For Residents of Japan
- Residence card (在留カード)
- Registered seal (印鑑) and seal certificate (印鑑証明書)
- Certificate of residence (住民票)
- Income verification (tax returns or employment certificate)
- Bank statements
For Non-Residents
Non-residents can substitute certain documents:
- Passport (instead of residence card)
- Government affidavit from your home country (instead of seal certificate and residence certificate)
- Signature instead of seal (notarized)
- Income verification from your home country
💡 Pro Tip: The physical presence requirement catches many overseas buyers off guard. Plan for at least two trips to Japan: one for contract signing and one for closing and registration.
Earthquake Resistance: The 1981 Standard
Properties built before June 1, 1981 use older earthquake resistance standards and are significantly harder to finance, insure, and resell.
Why 1981 Matters
Japan revised its Building Standards Law (建築基準法) in June 1981 following the 1978 Miyagi earthquake. Buildings constructed under the new standards can better withstand major seismic events.
The Numbers
According to Real Estate Japan’s building codes report, approximately 86.2% of wooden residences built between 1981-2000 don’t even comply with post-2000 earthquake standards—meaning even “post-1981” properties may have varying levels of seismic resistance.
What This Means for Buyers
- Pre-1981 buildings often sell at steep discounts
- Mortgage approval is more difficult for older buildings
- Insurance costs may be higher
- Resale value is lower
- Renovation costs can be substantial (even a simple shower renovation can exceed ¥3 million according to Japan Today)
For comprehensive information on buying in Japan, see our Complete Guide to Buying Property in Japan as a Foreigner.
The Important Matters Explanation Document
The Juyo Jiko Setsumeisho (重要事項説明書) is perhaps the most critical document in your purchase. Licensed real estate agents are legally required to explain this document before you sign the purchase agreement.
What It Covers
- Legal ownership status and any encumbrances
- Zoning and building restrictions
- Infrastructure (roads, water, sewage)
- Building details and known defects
- Management details (for condos)
- Hazard zone designations
Your Rights
Since a 2018 revision to the Real Estate Brokerage Act, agents must disclose whether a home inspection was conducted on the property. You can request this information explicitly.
Getting It in English
Not all agents can provide English translations. Ask about this capability when selecting your agent. Even with a translation, consider having an independent bilingual professional review the document.
Property Inspection: What to Check
Home inspections aren’t mandatory in Japan but are highly recommended, especially for used properties.
What Inspectors Check
- Foundation and structural elements
- Roof condition and water damage
- Wall cracks and building tilt
- Plumbing and drainage
- Electrical systems
- Termite damage (common in wooden structures)
- Moisture levels
Finding an Inspector
Look for inspectors certified by JSHI (Japan Society of Home Inspectors) or similar professional organizations. Your agent may have recommendations, but consider hiring independently for unbiased assessment.
Costs
Professional inspections typically cost ¥50,000-¥100,000 depending on property size and scope.
Common Mistakes First-Time Buyers Make
Learn from others’ experiences:
1. Underestimating Paperwork
Japanese real estate transactions are paperwork-heavy. Allow extra time and don’t get frustrated by the documentation requirements.
2. Skipping Location Research
Visiting once on a weekend doesn’t show you what the neighborhood is really like. Visit multiple times at different hours.
3. Ignoring Building Age
That bargain pre-1981 property may cost more in renovations, financing difficulties, and resale challenges than you save upfront.
4. Rushing Pre-Approval
Get mortgage pre-approval before making offers. This demonstrates seriousness to sellers and clarifies your actual borrowing capacity.
5. Not Planning Physical Presence
Contract signing and registration require your presence in Japan. Plan your trips accordingly.
6. Overlooking Management Fees
For condos, monthly management fees and reserve fund contributions add significantly to ownership costs. A low purchase price with high fees may not be the bargain it appears.
Your Pre-Purchase Checklist
Use this checklist to track your progress through the first steps buying house Japan involves:
Preparation Phase
- Clarified purpose (residence/investment/vacation)
- Calculated total budget including 8-12% transaction costs
- Determined financing needs and down payment amount
- Researched target neighborhoods
- Checked hazard maps for target areas
- Found and selected a bilingual real estate agent
Financing Phase
- Gathered required documents
- Applied for mortgage pre-approval (if financing)
- Received pre-approval confirmation
Search Phase
- Viewed multiple properties
- Verified construction dates (post-1981 preferred)
- Checked management fees and reserve funds (for condos)
- Researched specific buildings and neighborhoods
Contract Phase
- Submitted letter of intent
- Received Important Matters Explanation
- Had documents reviewed by bilingual professional
- Arranged physical presence in Japan for signing
- Signed purchase agreement
- Paid deposit (5-10%)
Closing Phase
- Completed property inspection
- Received final mortgage approval
- Arranged final payment transfer
- Completed ownership registration
- Received keys
- Set up utilities
- Submitted Bank of Japan notification (if applicable)
FAQ: First Steps Buying House in Japan
What is the first step to buying a house in Japan?
The absolute first step is clarifying your purpose (investment vs. residence vs. vacation) and setting a realistic budget that includes 8-12% in transaction costs beyond the property price. Once you have these fundamentals clear, finding a bilingual real estate agent becomes your next priority—this person will guide you through the entire process.
How long does it take to buy property in Japan?
The typical timeline from initial research to receiving keys is 4-9 months. This includes 1-2 months for preparation and agent selection, 1-2 months for financing (if applicable), 1-2 months for property search, and 2-3 months for negotiations, contract, and closing. Cash purchases can sometimes move faster.
Do I need to be in Japan to buy property?
Yes, physical presence in Japan is required for two key steps: signing the purchase agreement and completing the ownership registration. Plan for at least two trips. Some buyers try to compress these into a single extended visit, but most need to return separately for closing.
Can I get a mortgage in Japan as a foreigner?
Yes, but requirements are strict. Most banks require permanent residency or a long-term work visa, stable income (typically 3+ years with the same employer in Japan), and a substantial down payment. Some banks like Shinsei and Suruga have programs for residents without permanent residency. Non-residents typically need to purchase with cash. See our detailed guide on mortgages without permanent residency.
How much money do I need to start the property buying process?
At minimum, you need your total budget planned: the property price plus 8-12% for transaction costs. For the actual purchase process, you’ll need 5-10% of the purchase price as a deposit when signing the contract, plus funds for any property inspections (¥50,000-¥100,000). If financing, banks may require proof of down payment funds (typically 10-30% of property price).
Related Guides
- Complete Guide to Buying Property in Japan as a Foreigner - Comprehensive overview of the entire purchase process
- Getting a Mortgage in Japan Without Permanent Residency - Detailed financing options for foreign residents
- English-Speaking Realtors in Japan - Find agents who can help you navigate the process
Official Sources
- Ministry of Land, Infrastructure, Transport and Tourism (MLIT) - Official housing policy and regulations
- Ministry of Justice - Real Property Registration - Official registration system information
- Japan Shiho-Shoshi Lawyers’ Association - Find qualified judicial scriveners
Final Thoughts
Buying property in Japan as a foreigner is entirely achievable, and the market remains accessible with no ownership restrictions for foreign nationals. The key is methodical preparation: understand your purpose, set a realistic budget with transaction costs included, research locations thoroughly, and find a qualified bilingual agent to guide you through the process.
Real estate transactions in Japan reached ¥4.8 trillion in 2024, the highest since 2008, with Q1 2025 showing continued momentum. Foreign investors account for approximately 9% of Japan’s institutional real estate investment market, demonstrating that international buyers are successfully navigating this market every day.
Take your time with the first steps. Rushing leads to expensive mistakes. The Japanese property market isn’t going anywhere, and a few extra weeks of preparation can save you months of regret.
This guide was last updated in February 2026. Real estate regulations and market conditions change over time. Always verify current requirements with qualified professionals and official government sources before making purchase decisions.