Buying property is a big deal psychologically, perhaps even more so if it's in a foreign country. The entire process, from the first conversations about finding a place to the moment you get the keys, is marked — and influenced — by an array of emotions. Knowing what to expect can help ensure you get the home you want, at the price you want, with as little stress as possible. We spoke to three non-Japanese residents about their experience of purchasing a house here, and they offered invaluable insights and advice.

For Jared Campion, Business Director of Carter Executive Search, buying a family home in Tokyo was a lengthy process characterised by uncertainty. "We weren't sure, right up until the end, whether we were going to get it," he says. "But I thought, let's give it a shot and see how far we get." This attitude, which has guided much of Campion's long residence in Japan, eventually helped him secure a property in Setagaya.

Concerned that he would not be able to obtain finance without it, Campion waited until he was granted a permanent residence permit before exploring the buying market. Then, after browsing a bit, he and his wife asked a realtor friend to be their agent — a move that made the process much easier.

Campion cautions against being too open in initial interactions with local agents, as their approach can be persistent, to put it mildly. After broadly indicating that they were interested in purchasing property, they had "about 50" agents phoning every day. "And they just wouldn't let it go," says Campion. To avoid feeling overwhelmed, he advises against going to an agent's office (they want to get you there so they can see if you qualify) unless you are already familiar with them — and know they have your best interests at heart.

It's also useful to be aware of the practice of showing potential buyers a number of uninspiring, overpriced properties before taking them to see better options with more reasonable pricetags — an old trick that can leave people feeling that the end options are the best they have. 

When it came to applying for home finance, Campion found himself feeling anxious. "We didn't know whether we'd get it or not — and you only find out when you try," he says. There was a significant deposit to pay upfront (but the amount can be negotiated, says Campion), and two and a half hours of initial paperwork to complete for the ball to start rolling. There was even more to do later on — and a whole lot of processing time in between. In total, says Campion, it took about three months from paying the deposit to moving in. 

After the stress of the work and the wait, seeing everything come together was incredible. "Once the bank approved, I started feeling relieved," says Campion. "But when you get the keys, that's when you really feel relieved." For the first time in Campion's decade and a bit in Japan, it felt like he had a proper home. "Just having that space is awesome," he says.

Paul Landicho, a Global Communications Specialist who bought an apartment in Tokyo's Chuo ward, couldn't agree more. He and his wife had long wanted a place they could call their own, and eventually found one.

The couple initially looked at only new places, but found this to be a frustrating experience. "Many of the places we were shown were in the lower floors, meaning a lot less sunlight, and some of the prices were way out of our budget," Landicho explains. "I think (the agents) did this on purpose to try to find only the most serious candidates with enough cash flow." He adds that they were interviewed before setting foot on any of the properties, a practice that could come as a surprise to foreign buyers. 

After a fruitless search, the two started considering pre-owned apartments — and this opened doors. They went for a place advertised on a leaflet in their mailbox, and as luck would have it the owner needed to sell fast. "This helped get the price down a little," says Landicho, adding a caveat that buyers not let the fast pace of a sale or their excitement get in the way of asking the owner to replace wallpaper, or take care of anything else that needs attention.

When it came to the purchase process, everything was in Japanese, but having the help of his wife, a native Japanese speaker, eased a lot of the stress. "A lot of times I was blindly stamping documents, but felt we were in good hands," he says. Arranging finance also went smoothly — Landicho suggests that having a Japanese credit history helped with this.

The key to buying property, says Landicho, is being "fully comfortable and committed," wherever that may be. This will help you to get the end result you want.

Andrew Lee, a Software Engineering Manager and homeowner in Setagaya, weighed in with a few tips of his own for smoothing out some of the potential woes in the house-buying process — starting with the agents.

The maximum fee that agents can charge a buyer is ¥63,000 plus 3.15% of the price — and they will typically ask for this. However, as with the deposit, it is possible to negotiate, and Lee recommends doing so. "Make them an offer," he says, "and let them know you are using other agents."

Most Japanese buyers simply do not ask for a discount, a custom that may make domestic agents reluctant to lower their rates. But Lee reminds buyers that, awkward though they might feel, they are not bound to adhere to this cultural rule. "Agents who serve the foreign segment are used to expectations in terms of fees, so they are sometimes more willing to cut a deal," he says. When looking for an agent, it pays to keep this in mind.

Lee also suggests checking whether agents have any connections at the banks, as this can sometimes help to "smooth the skids". 

Over and above all of that, though, what really helps with the process — when it comes to both the practicalities and emotional elements— is having someone with Japanese-language ability on the team, says Lee.

By Carey Finn

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