Buy
Buy
Buying Property
Table of contents
Your Trusted Partner for Secure,
Value-Driven Real Estate Purchases in Japan
EM Labo’s Real Estate Purchase Support
Buying a house in Japan can be a dream for many. Yet, regardless of the country or location, we all know that property purchase can be an exciting and emotional process. Your journey should be entered with the help of a reliable agent as a genuine agent can prioritize your needs and walk you through the entire experience. EM Labo specializes in value-driven approaches to property purchases for various purposes- whether it’s your upcoming home, an investment, or a property to rent out.
Choose the Right Agent for Your First Viewing
As with home buying, you may not find such a “right” agent on your first attempt. However, in Japan, it is not a common practice to change your agent after the first viewing. Some agents might even tactfully prevent you from doing so. Finding a top-notch agent right from the beginning is, thus, vitally important. If you’re looking for someone who always has your best interests in mind throughout the home-buying process in Japan, come to EM Labo, we are the one. Let us find you a property with long-lasting value and flexibility for your glorious future.
Find Your Dream Property in a Shorter Time
Yes, over the years we have witnessed more and more property information available in English. However, it merely covers limited parts of the entire picture. EM Labo is pleased to take the time to get to know your preferences and present you with choices from public to exclusive, off-market properties. Global, social, and marketplace shifts never fade in Tokyo’s real estate market but we have tactics and systems for rapid market response by leveraging data-driven insights. Join our LINE group to get to know the market dynamics, and get our online consultation, which is followed by decent options suitable for you.
Our Secretes to Smoother and More Profitable Transactions
1.Transparent Cost Visualization
We provide comprehensive cost estimates upon every property viewing, making all expenses and monthly repayments easy to understand. Our data-driven insight allows you to plan your budget and finances in a much easier manner for better decisions.
A Sample of Estimation Cost
2. Strategic Cost Savings
We help to save your money by selecting the best loan terms through trusted banks so you won’t make expensive mistakes. We also work with pros in other related fields (e.g. fire insurance agencies, English-speaking judicial scriveners/ tax accountants). Despite some extra fees, your money is saved.
3. Responsive, Supportive Communication
Our team is dedicated to providing prompt and professional responses. To thrive in the fast-paced real estate environment in Tokyo, you need essential updates on the market trends, professional answers to your questions, and assistance to make the right decisions under a tight timeline.
4. Access to Prime, Value-Driven Listings
In Japan, unfortunately, many listings are not available in English, and high-commission properties are often prioritized (we are so looking forward and trying our best to sort this out and make changes!). We are glad to utilize our extensive network for exclusive access to properties with future value that truly meet your needs. Considering the huge number of new customers you have attained throughout the years are referees, we strongly believe that we found success in setting property buyers free from unnecessary constraints and hurdles.
Our Comprehensive Brokerage Package
EM Labo offers a full suite of services to support our clients in every single step in their property purchase journey. We always aim to create a smooth, well-informed, and secure transaction to accommodate their needs.
Property Selection &
Area Analysis
We conscientiously evaluate properties, suss out the area, examine the future investment potential, and visualize your future life there.
Detailed Area Statistics
Our team provides area reports with in-depth statistics including population demographics, age distribution, comparable property data, and even earthquake safety metrics.
Property Management
Reports
For apartment buyers, we have comprehensive management reports to illustrate details. For instance, decor-building conditions and maintenance history can be important hints for any major buys.
Pages of Paperwork &
Professional Review
We prepare and review disclosure statements with thorough explanation about all contractual details.
Mortgage Advisory Services
We are also pleased to provide advice on mortgage selection to accommodate your needs as financial plans are, all in all, extremely personal.
End-to-End
Handover Support
We facilitate all steps from examining the details in contracts to handover so you can focus on your future life in the “complicated and stressful” (not to our clients!) process.
Network of Trusted
English-Speaking
Professionals
As previously captioned, we connect you with reliable English-speaking pros such as judicial scriveners, attorneys, administrative scriveners, tax specialists, and experts in related fields to deal with legal and tax-related procedures in the transaction.
Inspection Guidance &
Contractor Referrals
We guide you through property inspections and recommend suitable contractors/ home renovators to realize your life dreams.
Moving and
Transition Assistance
We can also introduce the most trusted moving agents to you and guide the relocation procedures.
Pre-Purchase and Post-Contract Requirements
Legal Documents/ Paperwork Needed for Property Purchase
- Identity Documents
Driver’s license/ passport as proof of your identity - Proof of Income
Tax withholding certificate or tax return for loan screening - Health Insurance Card
National Health Insurance (NHI, issued by your city/town office) or Social Insurance (SI, issued by your employee) - Residence Card
For international residents in Japan - Registered Seal (Jitsuin)
An essential item for contracts, loan agreements, and property handover.
Legal Documents/ Paperwork Needed After Signing the Contract
- Seal Registration Certificate
Necessary for affixing your registered seal on important documents - Certificate of Residence
For property registration and contracts as proof of address
Non-Japan residents shall attain an affidavit (Declaration of Oath) from the Japanese embassy if any of the above documents cannot be presented - Proof of Annual Income (For Loan Applicants Only)
For salaried employees- Resident Tax Notification/ Resident Tax Certificate.
For self-employed individuals- Tax Payment Certificates No. 1 & 2.
The Property Purchase Process
1
Define Your Property Purchase Project
The very first step is to understand your needs and expectations. Here are some key considerations,
- Type of Property
An apartment? A detached house? Or a vacant land to build on. - Location
A prime area? A region with strong resale value? Or a family-friendly neighborhood? - Access to Public Transport
Consider commute and accessibility - Property Size
Number of rooms, overall space, parking space…
Make a checklist of must-haves and nice-to-haves to get a better understanding of your dream house. Our experienced agents are happy to guide you through and provide advice throughout the process to visualize your dream house together.
Set Your Budget
A budget allows you to identify your financial limits, preventing you from overextending and succumbing to the allure of properties that might be out of reach in terms of their price.
- Consider all expenses- property price, registration fees, agent fees (if applicable), and renovation costs.
- Calculate your monthly loan repayments based on your down payment, borrowing capacity, and loan terms.
By setting a clear budget, you not only safeguard your financial well-being but also embark on the house-hunting process, the next steps, with less stress.
2
Organize Efficient Property Viewings
EM Labo provides options that fit into your big life changes and arranges viewings accordingly. We help to manage viewings efficiently to save you time and ensure that you make informed decisions. We streamline the process and make it as smooth as possible.
In a viewing, we guide you to look at crucial factors- details can’t be illustrated simply on the floor plan, conditions of the interior, space dimensions, or the presence of beams and other equipment. It’s a good chance for you to explore the neighborhood and estimate your future routine by making visits to nearby railway stations and community facilities.
We are also pleased to provide a cost simulation that best fits the property with all extra expenses so you can evaluate your budget plan.
3
Mortgage Preapproval
Once you have a clear idea of the direction of your property-buying journey, we’ll assist with both property searches and mortgage preapproval as the itinerary of your journey. It’s crucial to secure loan pre-approval earlier as waiting until you’ve found your dream property could cause you to lose the chance while you are waiting for the approval of your loan.
Loan options will vary based on your residency status, your dwelling country (in Japan or outside of Japan), and whether you have a lawful Japanese partner. Again, let us present you with tailor-made plans.
4
Submit a Purchase Application
When you find “the one,” it’s time to take action to secure it- you’ll have to submit a Purchase Application Form (a rather simple A4-sized document) to the seller and their agent. Other required documents include your ID and loan pre-approval certificate.
5
Prepare for the Contract
Typically, it takes about a week from application submission to contract signing. During this time, our team will conduct a thorough property inspection, gather documents from the legal affairs bureau/city offices, and investigate the property’s history (if necessary) together with you.
EM Labo runs a robust system to ensure quality, including cross-checks by specialists. We draft comprehensive explanations of important matters, sales contracts, and special clauses to prevent future disputes and potential hurdles. Also, let us go over everything with you in advance before the contract signing to address any queries and concerns.
6
Sign the Sales Contract
The signing day is when you should confirm the finalized terms and conditions. It’s also an opportunity to meet the seller if you haven’t. This face-to-face meeting could also be valuable for learning more about the property, its history, and backstories. This process of contract signing usually takes place at the office of either the buyer’s or seller’s agent (so it could be our office).
We compile a list of important points to note to protect you and your potential investment.
7
Final Loan Approval
After signing the sales contract, we’ll proceed with the final loan approval. Be mindful to get all required documents ready to ensure a faster and smoother process and again, we have pointers to share. It generally takes 1–2 weeks.
8
Loan Agreement with Your Financial Institute
Around 10 days before the property handover, you’ll sign a loan agreement with your financial institute, which will explain the loan terms, interest rate adjustments, prepayment options, and other extra fees.
For online banks, procedures may involve back-and-forth online communication and conference calls. Remember to reserve time for the administrative routine.
9
Ownership Handover
On this big day (of celebration!), you become the official owner of the property; you’ll receive all the keys, mailbox keys, and other items. Let’s get excited about taking further steps into your big event!
The handover process usually takes place at the financial institute where the buyer’s loan is being processed, with the presence of the seller, seller’s agent, buyer’s agent, and a judicial scrivener. It is commonly scheduled on a weekday morning.
10
Beyond the Handover
Our goal is not merely to sell a property. We’d love to stand by our clients in such a crucial period with big changes. We are honored to be your trusted partner, offering expert guidance to help you through.
Even after the handover, our service goes on. Years down the line, we still want you to look back and think, “I’m glad I chose this home.” so just let us build up your new life together with you! We assign an English-speaking licensed agent to international clients to take care of the entire transaction in every single step. We are happy to take questions, so let us guide you through this amazing and emotional journey and ensure you will be able to move into the house of your dreams.
Customers’ Review
The Matsushima Family
【Location】Shinagawa, Tokyo
【Budget】
JPY 55,000,000 →
Purchased Property) JPY 54,800,000
【Family structure】
A household with elementary school-aged children
【Property Purchased】
A pre-owned house
I came to know EM Labo through my hairdresser. “If you’re looking for a house, this agent is a great one on your side!” she rejoiced. I have known my hairdresser for a decade, she has my full trust so I didn’t hesitate to reach out to EM Labo.
At that time, our family already had a location in mind, but we were clueless about how to budget and where to apply for a loan. I was impressed by the detailed consultation as they were willing to take the time to listen to us, they then introduced us to a mortgage option with cancer coverage that interested my husband.
The process was full of information and our family went through some debates. Not gonna lie, we were indecisive and kept asking for “just one more option” (which was not just one…) but EM Labo proved what professionalism is as they really, really thought from our perspective. I just love the smile when they chuffed “Why not? There should be more options to explore.” We are now living in our cozy, lovely home thanks to the effort of this amazing agent.
It’s a little bittersweet now that the house-hunting process is over so we won’t get to meet the affable representatives of EM Labo as often but since they used to stress, “It’s time to enjoy the next step of your life!” and it was. It really was.
The Murakami Family
【Location】Ota-ku, Tokyo
【Budget】
JPY 65,000,000 →
Purchased Property) JPY 65,800,000
【Family structure】
Family structure) A family with a 3-year-old kid and a newborn baby
【Property Purchased】
A pre-owned house
EM Labo never drops the ball on communication. They are easy to approach but basically, they approach us and feed us with necessary information before we start to worry.
There were challenges along the way like the opposition from our parents and the unexpected arrival of our second child. We hesitated whether we should start over and move in a different direction. Our family took a one-year break but we knew we’d reach out to EM Labo again once we were ready to move on.
So, we started going hand-in-hand with EM Labo again. It was a surprise to us that all our preferences and details were still tidily organized so the representatives were even more ready than we were. I still remember the heart-warming moment Enomoto-san smiled at our newborn baby radiantly and proposed actions with thorough consideration of our family situation. She then took the initiative to arrange everything for us, including viewings and all the transports.
It took some time to find the right home for our family but thanks to Enomoto-san’s clear explanations about the mortgage plans and renovation schedule- the topics we had no clue about at all, we managed to make progress moving toward our dream life.
Enomoto-san is also married with a little boy, maybe that’s why our kids enjoyed seeing her during our meetings. Even our parents, who said no to our plan at the beginning, were satisfied to see our perfect home. My husband and I (and our parents!) couldn’t be more satisfied. Thank you so much for everything!
The Sato Family
【Location】Yokohama, Kanagawa
【Budget】
JPY 30,000,000 → Purchased Property) ¥30,000,000
【Family structure】
A young family with a 2-year-old kid
【Property Purchased】
Newly built house
It seems to me that there are many myths and misconceptions about who the real estate agents are . After working with EM Labo, I found out that I misunderstood the realities of them or that EM Labo is simply, distinctly different from all other agencies.
Previously, I viewed serval properties and approached a couple of agents but frankly speaking, they were all commission-oriented. I couldn’t help to feel that they were merely trying to strong-arm me into making a decision motivated by their potential commission rather than my goals and my needs.
With the help of EM Labo, things were so different. It was clear that their goal wasn’t just to close the sale and get the money but to ensure we were happy with our purchase. Let me try to list what I found amazing about EM Labo,
- I could ask questions in LINE at any time. More importantly, they were so responsive, and every time they came up with a nice solution to ease the burden on my shoulders and the worries on my mind.
- “Customer first”- they successfully did it, no doubt!
- They were by our side during all the viewings and the contract signing, so we felt secure. They even asked questions before we did.
- They stood before us and negotiated with the seller for us, and we ended up getting improvements like curtain rails and screen doors included as a part of the deal!
From time to time I talked to myself “Is it okay to ask for this much? Aren’t they live-tweeting their entire day for us? How can they make money out of such a huge amount of work?” I’m so grateful for their incredible support. EM Labo is a gem!
The Nakamura Family
【Location】Yokohama, Kanagawa
【Budget】
JPY 60,000,000 →
Purchased Property) JPY 58,900,000
【Family structure】
A family of 3 with a 6-year-old girl
【Property Purchased】
Pre-owned condo
We were dreaming of our dream house, but we didn’t know how to start. We ended up browsing common websites like SUUMO. A couple of agencies then came to us to follow up our inquiries with a series of difficult questions or pushy approaches…We were knackered, and we felt like fighting alone.
That’s when a tax advisor we know introduced us to EM Labo. At first, I was surprised by their team structure with a large portion of female representatives. They were easy to talk to, friendly, and reliable, which was very important.
At the moment we were planning to proceed with Rakuten Bank for our mortgage since it was a handy option that we already have an account with the institute. EM Labo then presented us with some more options with better coverage and lower interest rates. We were so thankful that they helped to erase costly disadvantages.
We took a long time to gather the paperwork and their representatives even came to our house and helped! Those complicated forms were all Greek to us but they walked us through with huge patience. In my view, they are always transparent and forthright, offering professional guidance on the best course of action, even if it’s not what we were expecting or hoping to hear.
I found that they understood the real estate business well enough to know the right questions to ask us. They knew exactly what we needed and were able to give accurate information as well.
EM Labo is not just honest and ethical, they are well-equipped to fight for us in this adventure!
FAQ- Your Real Estate Journey in Japan
1.Fees & Charges
How much do you charge to find a property for me?
Our brokerage fees are performance-based, i.e. no fees are incurred during the home search process. Some agencies might require a partial fee when entering a contract, we only charge the full brokerage fee upon successful transfer of ownership.
Is it possible to have your service at a discounted rate?
We are convinced that our service is of great value for money! We may also offer a discount to cash buyers, referees, repeated customers, or in cases in which the seller shares the brokerage fee. We’re glad to look into your case individually, provide you with a transparentchecklist, and serve at the best rate.
Are there other tax benefits available besides the mortgage deduction?
Yes, property acquisition tax reductions apply to home purchases, and new constructions bring property tax reductions (3 years for general housing and 5 years for long-term superior housing). Additional benefits may apply to energy-efficient homes.
How much is the brokerage fee?
Our standard charge is 3% of the property price + JPY 60,000 + 10% tax.
2.Purchase & Negotiation
I have started working on my dream house with another agent. Can you possibly chip in and sort it out for me?
If you’ve already contacted the seller/other listing agents, it is not a common practice in Japan to switch your agent after your first viewing without a good cause. Nevertheless, we are glad to look into your case and see what wasn’t a good fit so please do not hesitate to contact us for consultation.
Can you help negotiate the home purchase price?
Yes, absolutely! The onus is on us to work with the seller’s side to make sure the transaction is a pleasant experience for both sides. Let our multi-talented representatives solve the mysteries and struggles for you!
Can you help with purchasing vacant land instead of a property?
Yes, we also deal with land purchase projects. When purchasing vacant land, it’s important to consider potential structures for the land so we can also include contract provisions to address unseen issues, such as underground objects, etc.
How long does it take to buy a house in Japan?
Most buyers can get their dream house keys in 1.5 to 3 months. Cash buyers, new home buyers, or buyers with a real estate working background can speed up the process.
Are there any restrictions for non-Japanese buyers?
There are no specific restrictions for non-Japanese buyers but the visa status of international residents plays a key role in mortgage application. Permanent residents often have more options, including the desirable 100% financing. Non-permanent residents might expect a 20-30% down payment in general.
3.Exploration of Options
Can you help with properties listed on the Suumo or AtHome portal site?
Yes, of course. As you might know, we cannot guarantee without taking a look at the specific property but please don’t hesitate to consult us.
Do you do new properties?
Yes! While some new apartments may only be available for direct purchase from the developer, we handle quite a large selection of new houses in Japan.
I am thinking of purchasing a property for investment.
Property prices in Tokyo have been soaring since 2012, especially for properties near railway stations and new homes in prime locations. It’s a tremendous challenge to predict market trends but the price of similar older properties serves as a rather reliable benchmark. Major developers (the so-called “brand condos”) tend can be great options for investment. Home improvements and repairs (cracks, etc.) help to maximize your home value, too.
4.Mortgage Plans
Can you get me a home with zero money down?
When purchasing a home, a “deposit” of around 5% of the property price is usually required when you enter into a contract. It’s rather unrealistic to purchase a property with no funds at all as this deposit is required upfront. However, there are financing options to cover additional fees so you can have an up-to-110% loan. We are pleased to work out the best finance plan for you to fit your needs.
Are there any age limits to get a mortgage in Japan?
Most lenders provide their mortgage plans as a legally binding contract that allows you to finance the cost of a home over a long time but before the age of 80, so it is sensible to consider purchasing a home by age 45 when taking a 35-year loan.
How much can I borrow from the banks in Japan?
Loan amounts can go up to 7 times your annual household income, but it solely depends on the individual terms and conditions. We aim to maximize the mortgage our clients qualify for, and higher interest rates, pair loans, and income combinations can impact the number of loan options open to you.
I am not quite sure what tax benefits (such as mortgage deductions) are.
Keep good records when you have a mortgage! The interest you’re paying on your home loan could help reduce your tax bill. The mortgage interest deduction is a deduction for interest paid on mortgage debt. For new properties purchased from 2022 onward, the deduction rate is 0.7% over up to 13 years. Be mindful that you will need to file a tax return in the first year to claim this benefit.
I am currently living overseas. Are there any overseas mortgage plans available for me?
A valid identity document issued domestically in Japan is compulsory formortgage application so there are currently no mortgage plans for overseas buyers. Yet, you are able to apply for a working visa (thus a resident card as your identification) once you have arrived in Japan so your mortgage application is just one visa away.
5.Home Improvements & Renovations
Can you help with renovation and home improvement?
Yes, we can. We have constituted a powerful network in Japan including English-speaking pros in various related fields. We are knowledgeable in working with and serving non-Japanese clients.
I am considering an old property built before the 1981 earthquake standards. Is there anything I should be careful about?
Properties built before May 31st, 1981 follow the old earthquake-resistant standards so they are less protected to some or greater extent from earthquakes. Bear in mind the safety issue, and other considerations include higher maintenance costs, difficulties in mortgage application, and ineligibility for certain tax reductions.
6.Tax Issues
Do you do consultation and tax issues of inherited properties?
We can provide general guidance on taxes related to properties but we are afraid we are not qualified to advise on inheritance taxes since it is another discipline requiring a license. Yet, as captioned, we work closely with specialists in other related fields to support you in making informed decisions.
7.Mortgage Requirements and Pre-Screening
What should I prepare when applying for a mortgage?
Standard requirements include identity documents, proof of income, and health insurance details. Self-employed applicants may need additional documents. We are more than ready to share with you what we compiled based on your experience.
What are the typical screening criteria for a home loan?
General guidelines include,
- Age- must be over 20 and younger than 80 by loan payoff
- Employment status- stable work history, ideally 2 years working with your current employer
- Property value- influenced by the location, the size, and its accessibility.
- Income- monthly repayments should be 25-35% of your annual income.
- Health- must qualify for “Group Credit Life Insurance”.
Do all the banks in Japan offer the same interest rates and services?
No, the base floating rate is typically 2.475%, but discount rates could vary and surprise you. We can tailor-make a comparative analysis and figure out the best terms for you.
Which is better, a fixed or floating interest rate?
The primary concern for many buyers is the prospect of securing a loan- how to revolve around the interest rate that they can comfortably afford. A floating rate offers minimal monthly payments over time, while a fixed rate provides stable, predictable payments. The choice is completely personal- it depends on your financial goals. FYI, most of our clients opted for a floating interest rate rather than a fixed rate.
8.Documentation of the Mortgage Process
What documents do I need for mortgage pre-approval?
Below is a list of documents needed for mortgage pre-approval,
- Identity documents (Japan driver’s license/ passport)
- Health insurance card
- Tax withholding statements/recent pay slips
- Loan repayment schedules (if applicable)
What documents do I need when entering the contract?
Key documents include the disclosure statement, purchase contract, and other essential agreements. Sit back and relax! We compile a checklist for you and explain all the details.
What are the key sections in a loan agreement?
A valid loan agreement shall cover,
- The interest rate
- The amount of the loan
- The contract duration
- Repayment schedule
- Terms and conditions about late/ outstanding payments
Our clients can find out the details of all key components in our guidelines.
