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Home Sweet Home

By on April 29, 2009

In the past, the complexities of owning a dream home in Japan made it hard for most of us to even consider. Now as a result of present market conditions, whether buying a ready built house or constructing your own-property, purchasing in Jaapan has become affordable and very much a reality.

Financing one’s property purchase in Japan has traditionally been the stumbling block for many expats prepared to take the plunge, however the big lending institutions are starting to change their strategy. The biggest differences can be seen within the foreign lending institutions. Many are now offering yen mortgages for home purchasing here in Japan. HSBC (www.hsbc.co.jp/1/2/hsbc-premier/mortgages) and The National Bank of Australia Asia (www.nabasia.com/0,,96121,00.html) now offer mortgages for a variety of home owning options from land purchase and construction to ready built properties. HBSC require permanent residence to be able to loan 90% of the cost for up to 35 years, and for non residents up to 70% can be borrowed over a maximum period of 25 years.

Domestic banks are also adapting to the new demands. Shinsei offers a very comprehensive and progressive lending program for both the domestic and international borrower. Permanent residency is not a stipulation for expats. Varying rates and a variety of competitive schemes are on offer for the borrower. The whole lending procedure and application process can be viewed on their comprehensive english website (www.shinseibank.com/english/housing/index.html).

To qualify for a mortgage, you must fulfill the necessary requirements but they are now no harder than in your home country and an appropriate level of financial commitment is  required. Expect to have to provide a minimum of 10% up of total purchasing cost. The whole process of applying for, seeking property approval for your desired purchase and obtaining the loan can be accomplished in around 6 to 8 weeks.

In this buyers environment, why not go one step further and design and build your dream house? The thought of doing so in Japan may appear daunting but now, more so than ever before, it is feasible and rewarding. Japan’s system of family land ownership and house construction means many Japanese families rebuild their house every 35 to 40 years. Consequently architect- designed individual housing is commonplace. House designs are available from the big nationwide house builders like Panahome (www.panahome.jp) who produce a variety of house models. Styles can be bought of the shelf and adapted to your needs but architect designed here means little more than choosing the color of your front door. A more favorable alternative is to use the services of smaller boutique architects and construction companies like Komatsubara Komuten. They provided major repair and earthquake resistant reinforcement works at the Tokyo University, Supreme Court among other high profile projects. They also do a few projects at a time to ensure quality. They charge potentially 20-30% less than what most companies would quote if you contact them directly.  Another advantage is you will be taken care of by someone who speaks English. You can work closely with them to achieve your dream, fees are reasonable and the level of expertise second to none.  (http://komatsubara.blogdehp.ne.jp/article/13312620.html)   

Working within the tight confines of strict building regulations, limited space and unusual plot layouts, unique highly crafted individual residences combining new technology and materials   create family housing of lasting value.

Typically the land cost is between 65% and 75% of the total construction and the building accounts for around 25% to 35%. Present lower land prices (the urban land price index last year fell 6% year-on-year end of the second quarter) and careful cost cutting approaches with savvy design and careful choice of materials and  finishing means it is possible to get a beautifully designed family house in the heart of one of the most dynamic and safe cities in the world for a very competitive price. So what are you waiting for? Go get  some REAL estate!

Photo credit: Mr. Nobuhiro Azuma (Architect, Space Fabric)

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