Japan experienced the bubble economy in the 80s which has resulted most of Japanese are lack of confidence in buying properties, a lot of properties’ prices are one the third of peak time. In Tokyo and Osaka, many one bedroom units near metro station selling from HK$380K.
High Return on Investment(ROI)
The ROI of new building is about 3-5%, 10-30 years old building ROI could be up to 8-10%. And buildings constructed after 1982 are comply with seismic building standards law in Japan, so buying 10-30 years old Japanese buildings eligible high returns and peace of mind of seismic protection.
Stable Rental Income, Low Risk Investment
Most of the young people in Japan are now renting a flat instead of buying, especially Tokyo is Japan’s economic, political, educational and medical center, many outside the urban populations will move into the Kanto region. Properties within one hours away from the Tokyo Train Station will certainly hope tenants.
From contract, building inspection to the transfer of ownership must be based on the Government property transactions regulations.
Plus Japanese are famous on their punctuality and tidy, so most tenants pay the rent on time and keep their homes clean. Tenants need to submit their guarantors’ information or provide rental insurance to the landlord, so the situation of fail to collect rental is rarely occurred.
The Construction of Japanese buildings must be in accordance with the Government building construction law, and use high quality materials, coupled with the Japanese like to keep clean and tidy which usually 20-30 years old buildings are well maintained.
Permanent Land Ownership
Japan’s land is mostly permanent ownership, that is without to pay the premium can be last for generations.
Generally the property does not need any facilities as long as water, electricity and gas are ready.