Mr. J, who wishes to remain anonymous, is an Irishman who has called Japan home for the past 18 years. He recently became a proud property owner with the help of Mr. LAND. Acquiring a fully tenanted investment property and signing the final papers was a rewarding moment for Mr. J, providing both a sense of accomplishment and reassurance. Metropolis catches up with Mr. J to delve into his journey and glean valuable insights into investing in Japanese real estate.

Metropolis: Why did you choose to invest in Japan over other countries and how did you come across Mr. LAND?
Mr. J: One of the main reasons I became interested in investing in the Japanese real estate market is due to concerns about the future of pension support here in Japan. I sought an alternative that could provide passive income both now and in retirement. Real estate has always intrigued me because it offers consistent returns. Japan, in particular, is unique with its stable tenant base and strong rental market, which makes it an attractive option for investors seeking reliable income. I came across Mr. LAND through a third-party introduction. In terms of picking a real estate agent, it’s crucial to find an agent you feel comfortable with and trust. For me, Mr. LAND was that agent. They made the whole process smooth and transparent.

M: What are your key criteria when selecting a property and how do you foresee the potential for growth and returns?
Mr. J: When investing in a rental property, visiting the location and understanding why a tenant would choose to live in the area is important. Checking if the property has any inherent risks associated with the area such as the property being in a designated flood zone. Understanding if there will be any future limitations if you decide to renovate or build a new property. Doing your due diligence to ensure the building is being well maintained with documented maintenance records available are some of the key criteria I consider during my property selection process.

M: What challenges did you face during the purchasing process and how did Mr. LAND assist you in overcoming them?
Mr. J: The purchasing process presented several challenges, such as navigating through the procedures in Japanese and finding the right financing options. Real estate terms and contracts can be complex, but Mr. LAND was there every step of the way to advise and clarify any questions. Despite my research, I found the steps involved in securing financing to be more rigorous than expected. Building trust and good relationships with banks is crucial, and Mr. LAND’s established experience and referrals made a significant difference. Approaching banks without such referrals could put you at a disadvantage, whether you are from overseas or Japanese.

M: In your opinion, what are the biggest misconceptions about investing in Japan?
Mr. J: One of the biggest misconceptions I find is thinking you need to have permanent residency (PR) to get a loan. While PR is important, banks consider other criteria in an individual’s profile, such as the ability to repay the loan, length of residency in Japan, job tenure, asset situation, and overall knowledge and experience in both real estate and general investment.

M: How has your experience been investing in Japan and what has been the most rewarding aspect of your investment here?
Mr. J: Navigating the Japanese real estate market initially presented challenges and required patience, but overall, it was a rewarding experience. While investing requires significant research and learning, choosing the right partners makes the journey smoother and less overwhelming, reminding me that it is a valuable long-term investment. The standard of knowledge and expertise from Mr. LAND was impressive, providing comfort and confidence to investors like myself. The most rewarding aspect of my investment in Japan is the security and reassurance it provides. Owning a property ensures a reliable income stream for my family, even in uncertain times. Additionally, diversifying my investments gives me peace of mind knowing I’m not putting all my eggs in one basket.

Mr. LAND is a real estate agency based in Tokyo, Japan with over 30 years experience in the industry. At the Global Division, it specializes in helping international clients buy and sell real estate in Japan with full support in English. It prides itself in tailoring every transaction to meet the needs of each client. Message them to discuss your real estate needs anytime. They would love to hear from you.