Getting Ready to Purchase Your First Home in Japan... as a Freelance Gaijin

Visa and Residence Status: As a foreigner, you must have a valid visa that allows you to live and work in Japan. Permanent residents (PR) have the same rights as Japanese citizens when it comes to property ownership, while non-permanent residents may face certain restrictions depending on their visa type.

Proof of Income and Employment: Lenders will require proof of your income and employment to assess your ability to repay the mortgage. This may include income statements, tax returns, and employment contracts. Specifically for tax returns, make sure the year that you plan to purchase a house, you make you taxable income

Savings and Assets: Having a significant amount of savings or assets will strengthen your application and demonstrate your financial stability. Lenders typically ask for a down payment of 10-20% of the property value. 20% is realistic, and 10% is optimistic.

Credit History: Your credit history in Japan or your home country will be evaluated to determine your creditworthiness. A good credit history will make you a more attractive borrower and may lead to better loan terms.

Guarantor (Optional): If you have a limited credit history or income, a guarantor can be helpful. A guarantor is a Japanese citizen or permanent resident who agrees to assume responsibility for your loan payments if you are unable to do so.

Understanding of Japanese Real Estate Market: Familiarize yourself with the Japanese real estate market, including property values, tax implications, and the buying process. Consider hiring a real estate agent or property consultant to guide you through the process.

Communication and Language Skills: Basic Japanese language skills will be beneficial for interacting with banks when doing loan interviews, real estate agents, lenders, and other parties involved in the buying process.

Patience and Flexibility: Buying a house can be a time-consuming process, so be patient and flexible. Be prepared to provide documentation, attend meetings, and navigate various administrative procedures.

Professional Help: I spoke to a few real estate specialist in the inquiry phase of buying. I recommend Erik Nas's eHousing if you're an English speaker. They're wildly innovated and professional, and will get the job done smoothly for you.