Q1. Effects of the earthquake

A1. The earthquake and tsunami on March 2011, caused a great deal of damage to buildings in northeast Japan. However the most of the building damages were the result of the violent tsunami. That's thanks in part to the country's tradition of strong building codes and trying out new disaster-proofing systems.
Being a highly seismic country, Japan has strictly reviewed Building Standard Act and invested heavily on earthquake-resistance technology.

Q2. What is property rights?

A2. Property rights is the legal right to use, profit, unload the property as allowed within the law. It includes the right to change the usage of property.

ex) factory space ⇒ commercial building space, office ⇒ residential area
Leaving property to family members or descendants is also allowed.

Q3. VISA

A3. Some countries issue permanent visa for foreigners who have purchased certain amount of property, whereas Japan does not allow such condition. There is an investor/business manager visa available, but it is set with strict requirements and thus hard to acquire it.
Within several years, Japan has lowered the threshold of tourist visa to Chinese, and it seems to further the act.
On July 2011, under the new policy requirements, Japan has issued multiple-entry visas valid for up to 3 years to individual tourist who visits Okinawa. (The stay in Japan during each visit should not exceed 90 consecutive days.) Okinawa multiple-entry visas can be applied through travel agencies in China in the same manner as visas for individual tourists. The visa requires the tourists to travel to Okinawa on their first trip, but after the second visit, they are free to go anywhere in Japan.

Q4. Non resident Loans

A4. At this time, no bank provides loans to non residents in Japan. However, some braches of Japanese banks in foreign countries seem to start considering it.

Q5. Difference of Designated Private Area Measurement in Japan and China

A5. Designated private area measurement refers to the actual size of the occupants' private space. In china, the common area of the building such as hallways is included in designated private area of condominium whereas in Japan, it is excluded. The average size of a condominium in major urban area in Japan is 70m². In Japan, the size is shown in square meters and in the Japanese measure of tsubo. When you calculate ㎡ to tsubo, you multiply m² by 0.3025.

(ex) 100 m² × 0.3025 ＝ 30.25tsubo

Q6. Lease Contract

A6. There are several types of lease contracts, including the standard lease and the fixed term lease. The standard lease is most commonly used in Japan.

(A) The Standard Lease Contract
The lease term is set to be more than one year in the contract. However, the standard lease term in Japan is mostly 2 years. If the lease term is within a year, it will be set as the fixed lease contract. On the contract, early termination of the contract is allowed upon a special agreement. Also, it is common to set the timing of notice for termination or lease termination fee. If the tenant request to stay, the lease termination or the refusal of renewal at the expiration of contract is not allowed without legitimate grounds (ex. valid and urgent reason for the tenant to stay in the property).
Thus, the term of the standard lease contract is greatly effected by the tenant's condition and the landlord's intention.

(B) The Fixed Term Lease
A fixed-term lease contract will not be renewed and end on the expiration date set in the contract. The contract term is allowed to set freely.
After setting the fixed term, the contract will be signed in the form of notarial deeds. Aside from the lease contract, the tenant must make clear in writing that the lease will not be renewed and that it will end on specified expiration date. If the tenant fails to explain it, the contract will be ineffective and set as the standard lease contract. For residential properties under 200sqm, the tenant can cancel the lease due to unavoidable reasons, such as job transfer, medical treatment, or nursing care of family member. The contract termination will be completed one month after the day of termination request.
Early termination of the contract is allowed upon a special agreement.
If the contract term is more than a year, the tenant must submit the termination notice to the landlord 6 months or a year in advance. If there is a consensus between the tenant and the landlord, the contract can be re-signed.
The fixed term lease system went into effect on March 1, 2000,
In order to protect the landlord, as long as the tenant and the residential property stays the same, the fixed-period lease system does not affect house-lease agreements that took effect before March 1, 2000.

Q7. Management Service after the Purchase of Real Esate

A7. After the purchase of real estate, you need to maintain or improve the property value by the followings; the management of the property, invite tenant (leasing), negotiate conditions, act for making contract of lease, charge and collect rent and common service charge, handle claims and keep records of receiving and spending money.
Our company provides after-sales services defined above; please feel free to ask for the support.

Q8. Tax Payment

A8. When you buy a rental property in Japan, you will be imposed with fixed assets tax or city planning tax. (see more information about tax)
If you do not live in Japan, it is possible to use tax agent in Japan, who assist and make tax payments on behalf of the taxpayer. Our company can provide property tax management services as we are well connected with tax agent.