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Making it a reality

By on August 27, 2008
Before you start looking, it is possible to obtain ‘pre-approved’ finance. This may not only save much time, but it also enhances bargaining power and choice if your finance is in place.
Secondly, find a good real estate agent, clearly state your specific property objectives and clarify the agent’s reasons for recommending a unit. Only view properties which meet your preferences and be frank with feedback. If you are enthusiastic about your preferences, the agent should reciprocate.
If you want an apartment, it is generally considered that corner units on top floors are favorable both from a lifestyle point of view and for re-sale value. These units are usually quieter and have good light. Proximity to a train station is also considered important, again for your convenience and for re-sale.
If you can afford to buy land, you could also obtain finance provided you already have development plans in place to build on it. A mortgage can also be provided for the construction of the property.
Also clarify how long the property has been on the market, its original purchase price if you are buying secondary property, reason for sale, price per square meter, access, land entitlement (most apartments in Japan are freehold, but check) and the financial status of the resident’s association fund. Also check if plans are afoot to construct a new highway or buildings in the immediate vicinity.
If your objective is ‘buy-to-rent’, assess the property yield, price per ‘stub’, and price of similar units in the area. Whether buying for investment or for occupation, the timeframe over which you foresee owning the property may also have an impact. Capital gains tax is more penal if you sell the property within 5 years of purchase.
You may also need to compromise; higher price for a very good location, your desire for new or secondary property, unit-size, distance from station, etc. A longer walk to the station may be needed in return for a desired unit-size.
View as many units as possible, and don’t be pressured. Consider the above factors, ask a lot of questions but be prepared not to tick every box on your list of requirements. You should then be in a position to make a rational decision and a sound investment.

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