The costs associated with owning a property include taxes, repair costs, and administrative costs. Some costs are one-time costs, some are incurred monthly, and some are ongoing in the future. Let's start with taxes. There are three types of taxes: real estate acquisition tax, which occurs when you own real estate; real estate property tax, which occurs when you continue to own real estate; real estate transfer tax, which occurs when you transfer ownership of real estate; or real estate inheritance tax, which occurs when you inherit real estate by inheritance. The tax calculation is based on the assessed value listed on the property's public tax certificate. The real estate acquisition tax is a tax that only occurs once when the property is acquired. The real estate property tax is payable on January 1 of each year by the person or corporation holding the ownership of the property. When selling real estate, because a tax will be generated against the profit on the transfer of real estate, it will be necessary to grasp the acquisition cost, etc.
The inheritance tax on real estate is getting tougher with each year's revisions, so we need to check the law when the inheritance occurs. The basic interpretation is that when calculating the inheritance tax for undivided heritage, the heirs and inheritance are based on the country of origin of the heir. In addition, when calculating the total amount of inheritance tax, the heirs and inheritance share are based on Japanese law. It is best to check with your tax accountant for details, as it may or may not be related to whether you have lived in Japan. Next, regarding the repair costs, it will be the condominium that will be paid a fixed amount. There is a management union to which each owner belongs in the condominium, and through the union, repair expenses for future repairs of the building are funded. If the building age is short, the repair costs will be low, and the repair costs will rise as the building age passes. https://realestate-kyoto.com/APARTMENTforSale Of course, even detached houses will be repaired in the future, so repair costs will be incurred when repairing. Finally, there is the cost of management, but here we will discuss two types of management costs. The first one is the management fee that is paid to the company that manages the whole common part of the condominium when you own the condominium. The management company entrusted by the management association will maintain the entire building and carry out daily cleaning and other activities. Unlike the cost of repairs, they do not increase from year to year, but if the cost of management increases, there is a possibility of a rate increase. There are other management costs, for example, if we, Arrows International Realty Corp. manage the building, if the owner uses the building as a holiday home, we may be commissioned to pay a monthly fee. We can handle monthly utility bills and annual property tax payments, whether it's a patrol check of your building or an inquiry from a neighboring resident. If we provide such a service, we will receive a building maintenance fee from the owner. https://www.arrowsrealty.com/vacation-home-management-in-kyoto.html The above are the maintenance costs if you own the property. If you would like an individual consultation, please contact us via the website. When considering the purchase of real estate in Kyoto, are you unsure which is better, a detached house or an apartment? So what are the differences, what are the good and bad points, and what are the things we need to be aware of?
When purchasing real estate in Japan, it is possible to purchase ownership of the land. If you find value in the ownership of land, a detached house is good, and if you value convenience more than ownership of land, there are cases where a good location of a condominium is better. For example, if you want to own a property in Kyoto, you can own a property near Nanzenji Temple, where you can enjoy the ancient city, or near the Philosophical Road, where you can take a break from the busy life and enjoy a little peace and quiet. Those seeking the spirit of Zen can focus on this kind of location, building on the property, renovating it, or changing it into a house with a livable floor plan. If you want to buy a property that is easy to live in and has good access from Kyoto Station, there are cases where an apartment is better. It would be nice to have a house in such a location in a detached house, but even if you do, your budget may be higher. In that case, it may be better to choose a condo. If you value a building, for example, if you own a machiya house in Kyoto or live in a Kyo-machiya house, you're looking for a relatively good location plus a machiya house. Of course there is a budget, so the price of the property, which varies from location to location, the size of the building, and a rough estimate of the cost of renovations. In the case of a condominium, it is better to focus on the newness of the building, the newness of the interior layout and facilities, and whether the condominium is well managed or not. If you own a condominium, it is better to consider including the ownership cost of real estate because there is a monthly payment of management fee and repair reserve fund to the management association of the condominium. Tomorrow we'll be discussing the cost of ownership over the future. If your remote work is a success, it may be a new opportunity and a step forward into a way to enrich your life.
I started my own business in the fall of 2018, and the environment has changed drastically since I have been working for the company.I quit paper work, which I felt was unreasonable, as much as possible, and changed all necessary documents to electronic data as long as they could be digitized. I got a phone number for a new company, only to have a phone in the office and it all gets transferred to my cell phone.The only reason I needed to put the phone down was to get a license under the Real Estate Business Act. Also, in some cases, the Japanese real estate industry still has to provide information by fax. Of course, I can also use the electronic fax service to obtain a number and confirm the contents by email or by logging in to a dedicated page. And then, what used to be the need to work in an office or company became an environment where I could work anywhere, online, at home, or in the park. I'm in the real estate business, so my job is to guide people through real estate. However, I can meet with my clients at the nearest train station, hotel or cafe. Sales contracts and purchase agreements are paper, but of course, documents making is sufficient until printing. Even if I don't have a printer at home or elsewhere, I can now print data at the nearest convenience store. Therefore, if I really need paper printing, I can go to a convenience store. There are convenience stores everywhere within 5 minutes' walk, so it's not a problem at all. Internet connection? I use my phone's tethering when I'm out and use Wi-Fi when I'm at home, I don't have any problems at all. I have a Portable Monitor that I can take with me, so I can get my work done with a two-sided monitor. Now we have an environment where we can work and play more freely than ever before, without being confined to a place. Three months in Kyoto? Working in Shiga Prefecture with a view of Lake Biwa? Load up your car with portable power and camping gear, enjoy a new world together. One of our businesses is the management of second homes. It is used by owners who live overseas and come to Japan to visit their properties. This section explains the monthly maintenance costs of such properties.
A basic monthly utility fee will be charged, even in months when there is no use. Various contracts are made through the management company, and payment is made from the fund deposited with the management company. On average, the prices are as follows Electricity bill: 1,600 yen/month Gas fee 750 yen/month Water cost 1,750 yen/month Internet fee: 5,500 yen/month Management fees start at 5,000 yen per month, and additional services such as building ventilation, kitchen and sink drainage, etc. are available upon request. We can also offer garden care and other services. If you purchase a condominium, there is also a monthly management fee and a repair reserve fund payment to the management association of the condominium. You can also ask the management company to make all the monthly payments. Also, when you own real estate, there is an annual property tax payment on the property. This tax is paid by the owner of the property as of January 1 of each year. You will receive your tax bill in April of each year, which can also be paid through the management company. The above payment will be the monthly cost when you own the property in Japan. We can also manage properties that are not purchased through us. If you have any questions, please feel free to contact us. Today we will talk about the documents necessary for purchasing real estate in Japan.
The only documents required are the notarized affidavit, the officially certified address certificate in Japan. All that is left is to sign the documents prepared by the judicial scrivener. It's very easy and concise. This proof of address must be a official document and must be AFFIDAVIT notarized at the embassy of the country of nationality or at the notary office. If the lawyer is registered as a notary, the document with the lawyer's certification (Notarization) is valid and the word of Attorney must be included in the signed document. If you are staying in a country where you do not have nationality, you will need to create a notarized affidavit at the embassy of your country in your country where you are staying. When you complete the real estate transaction and register the transfer of ownership, judicial scrivener will submit this affidavit to the Regional Legal Affairs Bureau along with other signed documents. The affidavit will be translated into Japanese in advance, and if there is a Kanji (Chinese) display, the Kanji (Chinese) will be registered as it is, and if it is in alphabetical form, it will be registered in Katakana. The registration of ownership of real estate requires a judicial scrivener to face the buyer and strictly confirm the identity of the buyer. However, it is possible to confirm the identity of the buyer and confirm his / her will through online. Therefore, it is possible to purchase real estate and register ownership even if you do not come to Japan. When canceling the lease contract and moving out, tenants first contact the management company. Generally, it is necessary to notify one to two months in advance, and it is possible to cancel before the expiration of the contract period. When the management company receive the notice of the cancellation of the contract, we will start listing for rental first with "vacant schedule" in order to find the next tenant.
The busiest period for renting in Japan is moving to April and planning for international students to go to university from October. If the time is missed, the demand for moving will drop significantly, so we will continue to seek rent until the next high season. Another problem all over the world is the decrease in rent due to the decrease in sales and income due to Covid-19. In the case of commercial real estate, sales have been affected significantly, and because the Japanese government has not yet completed payment of special benefits, there are many calls for a reduction in rent and a grace period. With the demand for new rentals being extremely low, having tenants continue to move in will make landlords to receive more rent throughout the year. With regard to residential rentals, the number of people requesting a reduction in rent has increased due to a decrease in income. Those who are doing business as individuals are in a very difficult situation with a decrease in sales and a decrease in income. When such a contact is received, we will immediately report it to the landlord, consider the best measures and take the best way for both parties. We sincerely hope that the situation will improve soon. After purchasing real estate for investment by our clients, we may offer or manage rentals. Today, we would like to introduce the questions, requests, and inquiries from tenants.
Inquiries from new occupants include garbage problems, building equipment problems, rent problems, and other issues related to moving out. The first thing we will be asked about is date and the location of the garbage collection . When renting a detached house, we will have to dispose of the garbage at the collection place according to the collection date in the area. Regarding the collection place, the place often differs depending on the type of garbage, and the garbage will be discharged according to the rules in the town. Also, there is a fixed time to dispose of garbage, and most of them will be disposed of at designated places from early morning until 8 am. The collection place may change every year, and we will comply with the local regulations and dispose of the garbage. By the way, Kyoto City has its own garbage bag, so we can purchase it at a convenience store and put out the garbage in the designated bag. In the case of condominiums, there is a dedicated garbage collection box on the premises of the condominium, so we can just put it out on a fixed day. Building facilities include equipment malfunctions, internet usage, and television viewing. If the period of unoccupied house is long, the new tenants may be able to discover the defect by using the equipment. In that case, if it is the equipment of the building, and if the landlord has a duty to repair it, we will make a repair arrangement as soon as possible to eliminate the malfunction of the equipment. In the case of condominiums, there is a common antenna for watching TV, so we can watch it simply by connecting a cable. In the case of a detached house, there are cases where the antenna is not installed, so we ask to use a cable TV etc. to watch TV. I would like to explain what happens to the flow of money when purchasing real estate in Japan. When the buyer does not live in Japan, basically, the money is sent from the home country to the buyer agent in advance, and the money is paid to the seller in Japanese yen. Generally, 10% of the deposit is paid to the seller at the time of the contract, and the revenue stamp attached to the contract and half of the fee paid to the agent are generally paid together with the remittance to the buyer agent.
According to my rule of thumb, if the contract deposit is 10 million yen or less (real estate price is 100 million yen or less), withdraw cash from the account on the day of the contract and bring cash to the contract. Believe it or not, we carry 10 million yen in cash. At the time of the contract, the seller, the seller's agent, the buyer, and the buyer's agent gather together to explain important matters, contract details, other real estate matters, etc., sign and seal the contract and conclude the contract. Then, as a proof and fulfillment of the contract, the deposit is paid to the seller. It takes about 2 hours. The remaining payments will be collected at the banks, and additional judicial scriveners will be gathered to confirm the transfer of ownership, confirm the documents, perform the remaining procedures, and execute the transfer. The judicial scrivener confirms the ownership and confirms the title, and then, transfers the balance to the seller. There is no business practice to use an escrow account in Japan, and pay the remaining directly to the seller's bank account. Remittances to Japan are made at the time of contract and payment at the time of real estate delivery. Since the payment for real estate will be calculated based on the settlement date, the property tax will be calculated, so we ask to transfer in advance, or ask to transfer a little more. Taking into account the remittance fee and the number of arrival days for the remittance, the early procedure will make the transaction assured. Many real estate companies in Japan are closed on Wednesdays. It seems that the origin of Wednesday is the day when the contract flows on the water, or the day when the contract is cancelled. In line with that Wednesday, we have set consecutive holidays, with Tuesday the previous day and Wednesday as holidays. It is often adopted by major real estate companies whose main business is brokerage.
Some companies are closed on Wednesdays only, while others are closed on Wednesdays and every other Tuesday. By the way, some old small companies are closed on Sundays and holidays. In addition, even among major real estate companies, most of the companies whose main business is the corporation have holidays on Saturdays, Sundays, and holidays, and many of them work on weekdays. Also, I think that it is the same in other countries, but there are many companies that are members of the franchise brand of real estate. For example, Century 21 has around 1,000 stores in Japan, private companies and companies with a few staff members have joined Century 21 and are operating under the brand power. The uniform logos, uniforms, and training provided by the operating company make it possible for small companies to form a group and carry out advertising with a relatively small budget. However, payment of merchant fees, such as following certain rules and paying margin for sales, is a condition. Real estate companies have a strong side-to-side connection, and there are many cases in which they encourage each other to share their custody properties, request sales, and purchase properties before they enter the market. When the seller is a real estate agent, and the seller has an intermediary agent, in many cases the agent can ask the seller to purchase the real estate at a lower cost than entering the market. Of course, there are reasons for not going directly to the market, and vendors can buy for various reasons, such as hurrying sales, poor building conditions, many right holders, or problems. A real estate company will perform such a lubricating oil function, so that the real estate can be purchased by ordinary individuals with peace of mind. I don't know if many people have the right perception, but it is easy to own real estate in Japan. If you buy real estate in Japan, you will get ownership of the real estate. Ownership is the right to own real estate, land and buildings, and it is possible to use real estate for general residence, investment and development. Ownership can be acquired by individuals, corporations, and overseas corporations that do not have an address in Japan.
There is no limit to the ownership of Japan, and it is possible to hold the ownership semipermanently. Can I get a visa if I buy real estate? I have a common question. Unfortunately, in Japan, ownership of real estate is not tied to the visa required for residence, and a visa is not automatically obtained. Also, the bank account is not linked and it is not possible to open the account automatically. Real estate ownership is applied and registered by the Legal Affairs Bureau. Generally, real estate is delivered and applied by a judicial scrivener. The application will be closed on that date, and it will be possible to obtain the actual entitlement after the deadline of about 2 weeks. Ownership can be acquired individually or by multiple people, and even parents, children, couples, and acquaintances can register and acquire it by setting the ownership ratio. If you no longer own the ownership, you can register the ownership of the ownership and transfer it to your relatives. |
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AuthorArrows International Realty Corp. Archives
June 2023
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