Submit an Offer
Conduct Due Diligence
Seal the Deal
Manage Your Property
HOW TO PURCHASE AND MANAGE AN INVESTMENT PROPERTY IN JAPAN PRITI DONNELLY
Submit an Offer
It ’ s easy to see why properties are sold within hours or days at the most in this market . As soon as you see something you like , notify your proxy to submit an offer on your behalf . It ’ s a good idea to have your agreements with your proxy signed in advance to save valuable time . Because properties are sold so quickly , you won ’ t likely have time to perform thorough due diligence on any particular deal before submitting your offer , but you should have enough information on your deal analysis to determine whether or not you want to submit your offer .
Conduct Due Diligence
If your offer is accepted , you will receive due diligence information from the real estate agent . One of the key items to look for is the accumulated fund , also known in some countries as a sinking fund . This fund goes toward a renovation / repair pool . Due diligence should be able to determine if the size of the funds pool is sufficient for building repairs . If lacking in funds , then the building report should show substantial renovations to the building to justify the shortage . If not , an experienced proxy will advise you to forego this deal . If you do submit an offer and then discover that you are not satisfied with the due diligence including tenancy history , building renovations or accumulated funds , you should be able to pull back your offer .
Seal the Deal
Once you are satisfied with the due diligence , your proxy is there to help you with the contract and deposit , required documents , deposit and settlement . On the day of settlement , your proxy will pay the rest of the funds on your behalf and the scrivener will perform the ownership transfer from the seller to your name . Within a month you will receive the equivalent of a Title Deed . Congratulations ! You just purchased property in Japan from around the globe .
Manage Your Property
You have successfully invested in Japanese property . Now it needs to be managed . Most foreigners do not have a local bank account , physical address or local phone number and therefore , the two challenges are communication and banking . Do not worry . On your behalf , your experienced proxy communicates with the property / rent manager , building management company , tax authorities , and insurance company . The right proxy can also act as your bank account to pay the bills , receive rental income , and provide you with a monthly balance sheet and remittance / acceptance of any funds from overseas .