In a few days, it will be my two-year Japanniversary. Two years since I arrived in Japan and moved into my apartment in Shinjuku. I’ve had good times in the little place in the centre of town, but there are some big drawbacks to living in such a convenient place. First, my apartment is expensive but small – I only have a mini-fridge and a single hob, with no food preparation area. Second, Shinjuku gets a little too busy for comfort, especially on weekends. And lastly, the most important thing – in Tokyo, there’s an annoying system where if you stay in an apartment for 2 years, you get charged a ‘renewal fee’, or double rent for one month. No thank you!
Last year, my grandmother passed away. She was a real character and I miss her presence in my life, especially when Christmas comes. She had enough savings squirreled away that when it was distributed between family members, it became a possibility that I could buy a cheap house in Japan. I’ve been working in Japan since I arrived, with several sidelines like proofreading and random TV work, plus made some well-timed investments into Cryptocurrency, so for the first time in my life, I’m ready to get onto the property ladder. Thank you, Grandma!
Buying in Japan is in some ways surprisingly simple, and in others surprisingly difficult. Firstly, there are no legal restrictions on foreigners buying property, which makes sense when you consider that the Japanese economy will benefit from foreign investment, especially from China. On the other hand, someone like me who has been here for just two years on a working visa, unmarried and with an uneven income, has no chance of getting a mortgage. So while it was possible to buy a place, I couldn’t look at anything very luxurious that I would ordinarily fund with a mortgage.
On the other hand, I feel that if possible, buying outright is a much better investment choice. The debates between buying or renting largely revolve around whether mortgage interest repayments are effectively the same as renting anyway, with various inconveniences. Buying outright has very few disadvantages in investment terms.
So I began the property search. Helpfully, there are various agents in Japan that are eager to help foreign-language buyers, especially in English or Chinese. My Japanese is getting…passable by this stage, but I didn’t feel prepared to deal with the complexities of contract negotiation without someone to interpret! I found various agencies who were helpful, but ultimately a relatively new company called Beyond Borders was most helpful, bilingual agent Mori-san having been very helpful and accommodating throughout the process.
I started out by looking at apartments near where I was living, but didn’t fall in love with any of them. Everything changed when I viewed a house a little further out from the city, in Koenji. It was a great little property by the side of a river – and it reminded me that buying land is far better than an apartment in Japan, where property depreciates but land holds its value.
I made a bid on the house. In fact, I was the highest bidder. Sadly, the seller thought that dealing with a foreigner was too scary and turned down my bid. In other countries, this might be illegal on grounds of discrimination, but there’s no protection against this kind of decision in Japan. Whether renting or buying, watching out for ‘no dogs, no gaijin’-style messages is a necessity. I was angry at the time, but it’s the current social reality here.
That experience totally changed what I wanted in my property search, though. I had been putting price first, then location, with size last. I realised I would be happier commuting for a longer time every day if I could get a much bigger place. That’s why I decided on Edogawa, where land prices are cheap but the trainlines are well-connected. Plus there’s a famous fireworks festival there every summer, and it’s halfway to the airport. I made sure to look for places on relatively high ground because Edogawa is at risk of flooding, and eventually found a house that was big, sturdy, but because the road approaching it is too narrow, cannot be completely rebuilt – something that in Japan sends the property price tumbling. I can reinforce it against earthquakes, even entirely rebuild the structure within the same blueprint, but can’t tear it down and build something new. If a natural disaster completely destroys it, I’ll be in trouble, but that’s a risk I decided to take.
The actual process of buying has not been straightforward. Japan has a lot of odd traditions connected to buying property. For example, the 10% deposit at the beginning of negotiations has to be made in cash. For my house that was a fair wad of banknotes, but I imagine luxury apartments in the city centre must involve briefcases full of them. It’s lucky Japan has such low crime rates, because that’s a very risky system!
I also had to have a jitsu-in, an officially-registered wooden seal, made in my name. This was surprisingly fast and inexpensive, and it’s probable that it would be waived in most sales to foreigners, especially those who don’t even enter the country for negotiations, but it was something of an oddity.
Now, I’m waiting to move in. Unfortunately, the seller can’t hand the property over in good faith until the land has been surveyed, and it’s taken a very long time to schedule that survey. But it’s finally around the corner, my belongings are all packed, and all that remains is the final settlement – which will be slightly surreal. The seller, her agent, my agent and me will all gather in a bank, where I will make a transfer to the seller and a transfer to my agent under the watchful eyes of everyone involved. Then comes registration, connecting utilities, getting insurance and all the other necessities.
It hasn’t been a simple process, and there have been some big bumps along the road, but I’m about to move in and get decorating. Frankly, I can’t wait!