Real Estate News

June 1 2015

Why Japanese properties are safe investments

We would like to continue to send you "Japan Real Estate Investment News" our newsletter featuring advice regarding Tokyo's real estate news and trends on a regular basis. We recently welcomed Ikuo Okamoto as a project member, and he is known for having through knowledge of the Japanese real estate market.

【Writer's Profile】
IKUO OKAMOTO
岡本 郁雄
Real estate consultant, management consultant, and financial planner, Ikuo Okamoto is familiar with  Japanese real estate marketing having seen more than 3,000 condominiums.  He’s provided consulting services and marketed real estate in Tokyo for more than 20 years.
He has also written articles about trends in the Japanese market with other experts on portal websites such as "All About."  He has been a lecturer at condominium purchase seminars, and has been a familiar voice on radio and television.  He is a graduate of Kobe University’s School of Engineering.


Japan's never been safer or easier to invest in!


As it is possible for foreigners to own Japanese properties, ensuring the safety of those investments remains one of our chief priorities. Outside of Japan, foreigners may encounter investment difficulties. Language barriers, poor familiarity with the market and a lack of transactional transparency are the root causes of these problems.

In truth, Japan encourages foreign investment - by way of example, Hokkaido has become a popular investment destination among Australians looking to ski during the Australian summer. And Tokyo's bustling market of foreign investments will only continue to grow thanks to a Japanese government aiming to ease visa sanctions for travelers. Japanese properties are subject to ownership, rather than licensing, rights - in short, this means that you will not lose your property rights over time. Your name will also be protected under the property registration system. Therefore, the safety in asset value is high.

Why Japanese properties are safe investments

Sufficient information disclosure makes investing safe and reliable. If a property owner wants to sell, lease, or serve as an intermediary for their property, they must obtain a real estate license. To obtain this license, their company must meet the required number of licensed employees and demonstrate sufficient net worth with which to protect its consumers. (If someone is found to be in violation of any related laws, their license will be suspended or revoked.) In addition, they are required to explain every disclosure in detail to the purchaser. The real estate transaction specialist will issue the relevant paperwork and explain its contents to the purchaser. The articles are to include full disclosures of the property - from information to restrictions - preventing any future difficulties. If the seller is a real estate agent, the property value's safety increases even further. The agents will bear defect liabilities for more than two years and for new main parts in new buildings, such as the base structure and outside finishing, they are liable to warranty against defects for more than 10 years after initial delivery.

Why Japanese properties are safe investments

Created to maintain transaction transparency and support swift transaction, the Real Estate Information Network Institution ("REINS") provides abundant information supporting the property market system and transactions. All real estate agent property transactions are registered with REINS. By accessing REINS, investors can search information on over 100,000 properties - a number reflecting an increase of 24% from 10 years ago. The government officially discloses annual land price indicators for over 20,000 sites, along with market price and trend indicators. Low volatility due to large market size is a good indicator of an investments' safety.

Why Japanese properties are safe investments

In the Tokyo area alone, 44,913 condominiums were sold (“Condominium Market Trend 2014” - Real Estate Economic Institute Co. Ltd). And with many newly built condominiums in Japan, there is no shortage of investor choices. Choosing the right partner is crucial to investment success. Multi-lingual, comprehensive support is essential. By trusting your investment to a company that can oversee all aspects from paperwork to tenant relations to the collection and remittance of rent, investors can remain at ease, no matter where they are located.

[Related Links] [ June 30 2015 ] Tokyo rent market and management practice [ May 6 2015 ] Soaring Tokyo Land Price

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* Our multinational team accepts both written and spoken queries in English and provides language support for speakers of Mandarin and Bahasa Malaysia.

Each of us investment team members are expert professionals at property investment advisory, with an acquired know-how of Japanese property investment. We are more than happy to support you by helping you develop your ideas about the properties in the pursuit of your goals. Also, our multinational team welcomes any inquires in English and can provide additional support for speakers of Mandarin and Bahasa Melayu.