How to Buy Property in Japan: A Step-by-Step Guide for Foreigners (2026 Edition)

Buying a home in Japan is an exciting milestone, whether you are looking for a family residence in Meguro or a peaceful area in Kichijoji, a luxury apartment in Minato, or a long-term investment property. Good news is? There are no legal restrictions on Japanese real estate for foreigners.

However, the process involves unique cultural etiquette and complex paperwork which might confuse you at first. At Momo Estate, we specialize in bridging the gap for international buyers.

Here is our expert, step-by-step guide to navigating the Japanese real estate market.

Step 1: Define your budget and financing

Before browsing listings, determine your “purchasing power.”

• Cash buyers: The fastest way to close a deal. You will need to prepare a Proof of Funds.

• Financing for foreigners: Getting a home loan in Japan usually requires a Permanent Resident (PR) status. However, some banks offer loans to non-PR holders if they have a high income, a Japanese spouse, or a significant down payment (usually 20–30%).

• Momo tip: We can introduce you to English-speaking loan officers at major Japanese banks to check your eligibility early.

Step 2: The property search & viewings

Once your budget is set, it’s time to explore neighborhoods like Setagaya, Meguro, or Kichijoji. However, a “viewing” in Japan is about more than just checking the kitchen cabinets. At Momo Estate, we guide you through the technical “health check” of the building.

• New construction vs. Pre-owned (Shin-chiku vs. Chuko): While new buildings are popular, well-maintained pre-owned apartments (Mansions) in prime locations often hold their value better. We help you compare the Repair Reserve Fund (Shuzen Tsumitatekin) to ensure the building is being managed properly for the next 20 years.

• The 1981 Benchmark (Shin-Taishin): We prioritize buildings constructed after June 1981, which meet the modern “New Earthquake Resistance Standards.” This is crucial not only for your safety but also for your ability to secure a bank loan and tax deductions.

• Sunlight and orientation: In Japan, South-facing (Minami-muki) units are the gold standard because they provide the most natural light and help prevent mold during the humid rainy season. We bring a compass to every viewing to verify this for you.

• The neighborhood: We don’t just look at the apartment; we walk the route to the nearest station. We check for the proximity of supermarkets, 24-hour convenience stores, and—most importantly—the quietness of the street at different times of the day.

• Reading the “Hazard maps”: Before you fall in love with a view, we cross-reference the property with Tokyo’s official Hazard maps. We check for flood risks, landslide potential, and soil liquefaction history to ensure your investment is on solid ground.

• Momo’s expert tip: Don’t just look at the unit—look at the common areas. A clean trash collection point and organized bicycle parking are the best indicators of a well-managed building and respectful neighbors. At Momo Estate, we check these hidden signs so you don’t have to.

Step 3: The letter of intent (Pettition to purchase)

When you find the perfect home, you submit a Kaituke Shomeisho (Letter of intent).

• This is not a legal contract, but a formal statement of your price offer and preferred closing date.

• Momo tip: In a competitive market, a quick and professional submission is key. We negotiate on your behalf to get the best price.

Step 4: Explanation of important matters (Jusho)

This is a unique and vital step in Japan. A licensed Real Estate Notary must read the Juryo Jiko Setsumeisho (Jusho) to you.

• This document covers every detail: land boundaries, management fees, and any legal “hidden” issues.

• Transparency: At Momo Estate, we provide full English translations of this document so you are never in the dark.

• The Jusho is your legal right to know everything about the property. If the notary mentions something that wasn’t in the original listing—like a planned construction project next door—this is the time to speak up. At Momo Estate, we advocate for your interests, ensuring that “Total Transparency” isn’t just a slogan, but a reality.

Step 5: Signing the sales contract & deposit

If you are satisfied with the Jusho, you sign the official Sales Contract.

• The deposit (Teitsukin): Usually 5% to 10% of the purchase price is paid at this stage.

• Stamp duty: You will need to pay for revenue stamps affixed to the contract.

Step 6: Final settlement and title transfer

Approximately 30–60 days after signing, the final “Closing” occurs, usually at the buyer’s bank.

• The handover: The remaining balance is paid, and the Judicial Scrivener (Shiho-shoshi) registers the title transfer at the Legal Affairs Bureau.

• The keys: Once the funds are confirmed, you receive the keys to your new Japanese home!

Momo Estate is your “Friend in Real Estate.

Whether you are a first-time buyer or a seasoned investor, we make the complex simple.

Ready to start your search? Book a Free Investment Consultation with us today!