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.