| Step 1 Buyer’s Property Criteria PROSPECTIVE BUYER | The buyer’s criteria (e.g., location, budget) for property search * renovated or non-renovated, house, condo, use of property |
|---|---|
| Step 2 Potential Properties REAL ESTATE BROKER | A list of properties that satisfy the buyer’s criteria * list of properties including use of property such as vacation home, investment, guesthouse etc. |
| Step 3 Property Viewing PROSPECTIVE BUYER | Property visit with a real estate broker * make an appointment for meeting, meet at hotel, property, station or any other convenient place. |
| Step 4 Written Offer PROSPECTIVE BUYER | Written offer in most cases. A deposit might be required with the offer. * including negotiation, schedules of contract sign, closing, may able to join or use attorney. |
| Step 5 Negotiation of Offer REAL ESTATE BROKER | Review of the negotiation, finance, schedules of procedures and other related works. * concluding conditions and arrange schedules. |
| Step 6 Disclosure Statement REAL ESTATE BROKER | Preparation of disclosure statement in accordance with law * details of property such as title, building, land and related regulations. |
| Step 7 Contract PROSPECTIVE BUYER | Closing of the contract. Closing costs include the stamp duty and agent fees. *pay 10% as deposit, stamp duty and 1/2 of agency fee at contract, pay remaining at closing. |
| Step 8 Possession SELLER AND BUYER | Possession and title registration after the payment of the amount owed to the seller. * receive deed and keys, pay all required money for transaction and ownership registration. |
| Step 9 Moving-in BUYER | Arrangement of a property management if necessary. |
During the contract closing and possession stages, the following actions are required:
‣ preparation of registration documents in lieu of resident proof and name stamp certification;
‣ selection of tax agent; and
‣ fund transfer for the sale to be reported to the Ministry of Finance in pursuant to the Foreign Exchange Act.
Cost of Property Purchase in Japan
In case of purchasing old existing house in Kyoto.
Land size 50 sqm / 538.196 sqft
Building size 80 sqm / 861.113 sqft
* 2-stories, detached house, 8 minutes walk to subway station, in Category 2 residential district.
| Sales Price | 30,000,000 JPY / 200,000 USD | |
|---|---|---|
| Fixed asset tax | roughly 100,000 JPY / 666 USD | |
| Ownership registration tax | roughly 150,000 JPY / 1,000 USD | * It will paid to Government through judicial scrivener. |
| Ownership registration fee | roughly 150,000 JPY / 1,000 USD | * to judicial scrivener |
| Stamp duty | 10,000 JPY / 66 USD | |
| Agency fee | 1,056,800 JPY / 7,045 USD | * (3% of property value + 60,000 yen) + 10% VAT |
| Real estate acquisition tax | roughly 300,000 JPY / 2,000 USD | * It will be asked to pay after 5-6 months. |
| Total cost | 31,746,800 JPY / 211,645 USD | (* calculated by 1 USD = 150.00 JPY) |
In case of renovating building
| building size | 80 sqm / 861.113 sqft |
|---|---|
| tsubo size unit | 24.24 tsubo size * 1 tsubo = 3.3 sqm = 35.52 sqft |
| renovation cost per tsubo | 700,000 JPY / 4,666 USD |
| cost calculation | 700 K × 24.24 tsubo = 16,968,000 JPY / 113,120 USD |
Cost per tsubo is roughly amount for renovation work. It will be changed by condition of building, materials, quality of finish and use of building.
Total cost
include payment of transaction and renovation work.
Total 48,714,800 JPY / 324,765 USD (* calculated by 1 USD = 150.00 JPY)