Buying a house, got cash and questions

[applelover]

Hi folks,

I have found a property which I would like to buy as a "holiday house". I'm currently working in Japan and have another year left on my 3 year visa. It's in the countryside which I will also use to start my own humble business. The house is 8 hours from where I am right now so it has been a long process. I hope to end the house hunting journey soon.

Here's what I have so far:

1. Cash ready buyers will have no problem securing a house - I have the cash plus extra to do some renovation if necessary.

2. Permanent residency is not necessary as long as I satisfy criteria (1) - this I'm not 100% sure but from what I've read on a number of forums and articles relating to home purchasing in Japan I can own and stay in my house for up to 180 days a year every year. Not a problem as I travel a lot between countries anyway.

3. I've read the basics of housing checkpoints such as zoning, Kenpei-ritsu (building-land ratio), Yoseki-ritsu (floor-area ratio), sai-kenchiku-fuka (no new construction allowed) etc. I'm not planning on renovating the house much as the external walls have been repainted recently and the roof (old Japanese style) look good. House seems structurally sound, built on higher grounds on a corner lot. It is currently inhabited by an old lady who's planning to move into her daughter's place.

The part that I need some help on is understanding the important matters - "Juyo Jiko no Setsumei" (lengthy-house-purchasing-discussion-process):

- title registration
- method of payment (cash only)
- terms of warranty (apparent the house is not covered, it's about 24 years old and looks great inside and out compared to the other houses that I've looked at in the same price range and area)
- clauses for cancelling the purchase agreement (I've looked over the place several times, had it checked out, asked a lot of questions and I'm happy with it).

I have been asked to bring a translator as my Japanese may not be enough to understand the dialog involving this process. I would like to know first hand if anyone here have had similar home purchasing experience considering the matters outlined above. Your help would be much appreciated, thanks!

 

[Glenski]

What's your nationality? 180 days per year is not guaranteed.
What kind of business do you intend to run only that long per year?

Have you looked into how/if you pay tax on the building and land?

Are you planning to pay 100% of the cost all at once?

 

[applelover]

Hi Glenski,

What's your nationality? 180 days per year is not guaranteed.
What kind of business do you intend to run only that long per year?

I'm British, business is import trading and teaching on the side.

Have you looked into how/if you pay tax on the building and land?

Either through debit deduction (auto paying) or just be in Japan during that time.

Are you planning to pay 100% of the cost all at once?

I can pay all at once.

 

[Glenski]

I have no idea how it would work for you to buy. Check with someone to be sure you don't need a Japanese bank to pay your taxes (but I suspect you will need one). There is also the obligation to pay for utilities monthly or every other month. Most people have that transferred out of their J bank accounts automatically. Even if you aren't living in Japan, the house will be supplied with water and electricity, presumably also with gas.

I still don't know how you would actually do business only 180 days out of the year in such a place.

 

[Majestic]

1. Foreign non-residents may purchase property in Japan.

2. Staying in Japan for 180 days... you are talking about after your current visa expires, you intend to come on a tourist visa (90 days) and extend for a further 90 days? Or you are talking about coming one time on a 90 day visa, leaving once, then coming in at a later date for another 90-day stay? Either way, your entry is up to the discretion of the immigration officer. Coming in and out of the country to constantly renew your 90-day visitor status is something immigration checks with some vigilance. You might be able to get away with it once, but after that I think you will find it difficult to enter the country. (Apologies if you meant something else).

3. Cash purchase is no problem. Typically this is done with bank transfer (and not a sack full of cash handed over) due to the amounts involved. There is no legal restriction on a physical cash transaction, its just a practical consideration.

4. Title registration is typically done by a legal scrivener. Usually you need to provide certain identification documents, (proof of seal registration, juminhyo, gaikokujin registration or certificate of registered items on gaikokujin registration), as well as the inkan which you will use to stamp the documents. Since you are now living and registered here, this is all fairly routine. If you purchase as an overseas resident (non-Japanese) it adds a level of complication.

5. Property tax bills will come once a year. You can pay all at once, or you can split it into 4 quarterly payments. Usually payable at a bank, or at a convenience store in some locations. It depends upon the tax authority. I have had property tax bills from two different locations, and neither of them had a direct debit option, although there is an online payment option... meaning once the bill comes to me (via snail mail) I can pay online.

I have done what you intend to do. In my case the real estate agents and scriveners, former owners, etc.. were all decent people, and the experience was not particularly traumatic. I consider myself very lucky. Not everyone has a drama-free experience like I did.

 

[Glenski]

If he needs a juminhyo to get the house, then he can't do this. Juminhyo is proof of residence. Jūminhyō - Wikipedia

He won't be a resident but a tourist. MAYBE if he comes on a working holiday visa (which entitles him to stay a year), but that is still tourist status. He would need a work visa or spouse visa and a residence. How did you manage it, Majestic?

 

[Majestic]

If he needs a juminhyo to get the house, then he can't do this. Juminhyo is proof of residence. Jūminhyō - Wikipedia

He won't be a resident but a tourist. MAYBE if he comes on a working holiday visa (which entitles him to stay a year), but that is still tourist status. He would need a work visa or spouse visa and a residence. How did you manage it, Majestic?

The original poster said he has one year left on his three year visa. I presume this means he is a resident, and can request a juminhyo. When I purchased properties, foreign residents could not request juminhyo, and instead I presented a copy of my "certificate of registered matters on foreign registration certificate".

 

[applelover]

That's right, thanks Majestic. I can't seem to post a PM as I get a prompt that I can only post after 1440 minutes (lol).
I found the place mainly for myself as it is out in the country area but about 15 minutes walk from a station. May consider renting it out if something bites.

Glenski, I'm also going to apply for self-sponsorship before my visa is up so this will lead to work and extended stay in Japan. I love living here so want to make it my second if not first home.

 

[Glenski]

Must be my late nights that cause me to miss that visa statement. Ok, residency settled.

Now, how about the other question about doing business while here 90-180 days?

 

[jeromejohn]

The clauses you made for buying a house is good. I had the same experience in buyinf a house in Australia and it was handle pretty well.