The most important question for you to answer is: why are you considering a purchase in the first place? The three most frequent reasons for purchasing of property are a home to live in, an investment property, or a vacation home. Depending upon which category you fall into will determine how best to proceed. Individuals will often think that purchasing a property for one reason, and then have the other two as sort of a backup use for the property, but such strategies rarely end as planned…
Did you Know: To purchase a property in Japan: Aquistion Tax, Registration Tax, Stamp Duty, Scrivener Fees, and Agent Fees alone will usually total just over 7% of the property value. – Tokyo Govt. Tax Bureau
This can vary greatly depending upon the purpose of the property (home or investment), what country the property is in, and what type of interest and terms you would like. These factors could necessitate between 10%, to as much as 40% as a down-payment.
If you are looking to invest in real estate but do not want the associated risk of having so many eggs in one basket, there are options available. For example, you are able to invest in a wide range of international property markets through the use of various property funds or real estate investment trusts (REITs).
Did you know: Ongoing costs of owning a property are around .6% tax of the property value per year, income tax up to 40% on any rental income, insurance/management fees, and ongoing maintenance/repairs averaging 2-3% per year – Tokyo Govt. Tax Bureau
At Tyton we do not profess to be a real-estate broker, nor to be experts in the field but we do have considerable experience existing clients in these areas on the basis of goodwill. We would be happy to answer any of your questions objectively and if there is anything that goes beyond the scope of our expertise, we would be happy to refer you to a trusted affiliate. If you wish to hear more about the pitfalls, and the silver-linings whilst here in Japan then drop us an email over on the Contact page.