Property Management Hints and Tips from Japan

Delivering Japanese Real Estate Information and More!

Real Estate Investment

Types of Fees Involved in Selling a Property in Japan

投稿日：

Many investors purchased properties in Japan with the anticipation of an optimistic growth in the real estate market driven by 2020 Olympics in Tokyo.

With a few months left to 2020 Olympics, investors are curious about the value of their properties. Today, I am going to introduce the expenses that comes along with property selling in Japan.

Brokerage Fee

This is a fee paid to the broker who conducts the selling process on behalf of the owner. The maximum amount is stated by the real estate brokerage act.

For transactions over 4,000,000JPY, the fee is as below.

Final sale price x 3% + 60,000JPY *sales tax apply

Please be aware that brokerage fee differs depending on the transaction amount.

Revenue Stamp Fee

Tax is collected on certain agreement such as agreement regarding loan, stocks, and real estate. Of course, it is necessary to place a revenue stamp on the sale and purchase agreement as well. The required amount of revenue stamp depends on the amount stated on the agreement.

For a sale and purchase agreement of a property that is over 50,000,000JPY and under 100,000,000 JPY, the revenue stamp is 30,000JPY.

Since one revenue stamp is required for each agreement, the buyer and seller often share one agreement and split the fee of revenue stamp.

*Fee is subject to change after March 31st, 2020.

Capital Gain Tax and Residence Tax

Capital gain tax differs based on the period of time a property is owned. For instance, for ownership that is over 5 years, the rate of capital gain tax is 15.315%.

Please also be aware that residence tax applies if you have a registered home address in Japan.

Miscellaneous

If you current address (even if you live aboard) is different from the one you have registered on the agreement at purchase, a fee is required to update the address.

If you have any plans to sell your property in the near future, or if you are curious at the current value of your property, Art Avenue will be glad to offer a free estimate.

We can also provide you with a detailed breakdown of the expenses involved in the selling process.

 

Visit us for more information at 

 

-Real Estate Investment
-,

執筆者：

comment

Your email address will not be published. Required fields are marked *

CAPTCHA


関連記事

Property for Sale 【April’s Pick】

Art Avenue will be delivering information of properties for sale regularly! Below is our recommendations in April. Click to download full size　⇒　20200404_property for sale As many of you have already known, besides property management, Art Avenue also helps our valued customers in selling properties. At the same time, we also help our customers look for properties that meet their investment plan. Don’t worry if you do not know how buying and selling works! Our sales department is here to assist you throughout the process. We have various teams that specialize in buying and selling, assessing property’s value and potential rent, …

Is a Written Contract Necessary?

In a lease contract, both parties agree on the written terms and conditions and both pledges to follow these written rules. However, is a ”written contract” indeed necessary? A lease contract is effective upon mutual consent even without any written instrument Property management company A is about to sign a sublease contract on a parking lot of 10 spaces with one of their customers. It turns out that the landlord only holds the written agreement of 9 of the spaces. One of the parking spaces was passed to the landlord with an oral contract. This is referred to consensual agreement. …

Room Vacancy Solution – Installation of Popular Room Features

2019’s most desired room features chosen by tenants was published by the national rental housing news in October 2019.   Features that contribute to rent increase   Necessary features in recruiting tenants   Every year, a survey regarding tenants’ needs is conducted among management companies and real estate agencies. 365 companies participated in this year’s survey on ”features that contribute to rent increase” and ”necessary features in recruiting tenants”. Free Internet Access is the Key to differentiate your apartment The number one feature that contributes to rent increase is free internet access on both single and family-type properties. Free Internet …

Hazard Map and Real Estate Investment

Japan is a hazard vulnerable zone. Every year, Japan gets hit by numerous natural disasters such as earthquakes, cyclones, typhoons, floods, and even volcanic eruptions. Depending on the area, the destruction of natural disasters can be more severe than that of other area. Hazard Map by Japan Government The Ministry of Land, Infrastructure and Transport has published a map showing area that are under the risk of floods, mudslides, and tsunami. This map also shows at what level the area is at risk of the above natural disasters. Below are maps showing areas near Tokyo that are under the risk …

Civil law amendment in 120 years! How does the new law affect rental in real estate?

Civil law in Japan was amended for the first time in 120 years and the new regulations have come to effect on April 1st 2020 (with exclusion). New regulations apply to all lease agreements ‘’signed’’ after the effective date. Keep in mind that ‘’signing date’’ and ‘’starting date’’ of a lease is different. Even if your lease starts after April 1st, if you sign your name on March 31st, the new regulations do not apply Let’s look at the changes that the amendments made in the rental market! Below are the most frequent asked questions. Will there be more or …

PREV
Convenience Store in Japan No Longer Open 24 Hours
NEXT
2020's Major Events and Real Estate Trend - Civil Law Amendment, digital innovation, etc...