(land + building)

No citizenship or residency required

• You do not need to be a Japanese citizen, permanent resident (PR), or even live in Japan.

• Foreigners can buy 100% freehold ownership, including:

  • Houses

  • Condominiums

  • Commercial buildings

  • Land (urban or rural)

Requirements:

• Passport (if abroad or visiting)

• A notarized signature (if registering from overseas)

• Japanese judicial scrivener to register the deed

• Japanese tax representative (if non-resident)

• Bank account in Japan (if buying with a mortgage or paying utilities)

Caution:

While ownership is allowed, financing is harder:

• Most Japanese banks require the buyer to have:

  • Long-term visa

  • Stable income in Japan

  • Often PR or Japanese spouse

• If not, cash purchases are common for foreign investors

No:

• No foreign ownership bans in Japan (unlike Thailand, Indonesia, etc.)

• No special permits required for foreigners to buy land

Stable Legal System

• Japan's legal framework is based on civil law, with clear, codified rules.

• Property rights are well protected, including for foreigners.

• Real estate transactions are registered with the Legal Affairs Bureau (法務局), ensuring transparency and traceability.

• Courts are independent, and contracts are generally enforced reliably.

Example: If you legally purchase a property, your ownership is secure—even as a non-resident foreigner.

🕊️ Low Corruption

• According to Transparency International, Japan consistently ranks among the least corrupt countries in Asia.

• Public officials, judges, and police generally maintain a high degree of professionalism and integrity.

• Real estate processes (permits, titles, taxes) are governed by clear procedures—not bribes or political favors.

✅ Foreign buyers rarely face “under-the-table” issues common in some other countries.

Real Estate Reassurance

• Brokers and agents must be licensed, and their role is regulated under the Real Estate Business Law.

• Legal documents are reviewed by judicial scriveners, and most deals require notarized contracts and official registration.

• Disputes are rare if you follow legal steps and use qualified agents.

1. Tokyo

• Why: Economic center, massive population, stable rental demand

• Tenant type: Young professionals, expats, singles

• Yield: 3–5%

• Entry cost: High

• Popular wards: Shinjuku, Minato, Taito, Setagaya, Nerima

• Best for: Long-term rentals, capital preservation

🌆 2. Osaka

• Why: Tourism, commerce, growing Airbnb potential

• Tenant type: Students, tourists, urban professionals

• Yield: 5–7%

• Entry cost: Medium

• Popular areas: Namba, Shin-Osaka, Tennoji, Nishi-ku

• Best for: Short-term rentals (Airbnb), higher yields

🏞️ 3. Fukuoka

• Why: Fastest-growing major city, low entry barrier

• Tenant type: Students, returnees, families

• Yield: 5–8%

• Entry cost: Low

• Popular areas: Hakata, Chuo, Sawara

• Best for: Long-term growth, mid-budget investors

🏯 4. Kyoto

• Why: Cultural capital, tourist hub

• Tenant type: Tourists (Airbnb), students

• Yield: 5–8% (short-term)

• Entry cost: Medium to high

• Popular zones: Gion, Higashiyama

• Best for: Short-term rentals (with license)

🏔️ 5. Niseko (Hokkaido) / Okinawa

• Why: Resort markets, seasonal tourism

• Tenant type: Foreign tourists, retirees

• Yield: High (seasonal)

• Entry cost: High (Niseko), Low–Medium (Okinawa)

• Best for: Vacation rental investment

In Japan, especially outside ultra-central Tokyo; many properties are cash-flow positive, meaning:

Rental income covers (or exceeds) your monthly ownership costs, including loan payments, taxes, and maintenance.

This is largely due to:

1. Low Property Prices (Especially Used Homes)

• Japan’s property prices are relatively affordable compared to other developed countries.

• For example, you can find:

  • Used 1K/1LDK apartments in Tokyo suburbs: ¥8–15 million

  • Small apartment buildings (5–10 units) in Osaka, Fukuoka: ¥25–50 million

  • Akiya (vacant homes) in countryside areas: from ¥1 million!

2. Steady Rental Demand

• Monthly rents are fairly stable, even in aging properties.

• A ¥12 million 1K unit in suburban Tokyo might rent for ¥60,000–¥75,000/month.

  • That’s ~7–8% gross yield.

• High tenant turnover is common, but occupancy remains relatively strong with the right location and price.

3. Sample Cash Flow

Let’s say you buy a ¥12 million used unit in Saitama (Tokyo suburb):

• Loan (1.5% / 20 years): ~¥57,000/month

• Rent: ¥70,000/month

• Mgmt, taxes, fees: ~¥8,000/month

• Net Cash Flow: ~¥5,000/month profit

Multiply this over several units and you build positive cash-flow income while property appreciates slowly (mainly land value in Japan).

Caveats:

• Depreciation is fast on buildings—land retains most value.

• Older buildings need renovation (factor in ¥500K–¥2M).

• Rural areas = high vacancy risk—focus on urban rentals.

Strong yields (3–8%), especially with older or suburban properties