5 Reasons to Invest in Japanese Real Estate

5 Reasons why Japan Real Estate Is a Good Investment 

In recent years, Japan has become an attractive destination for property investors due to its stable economy, low crime rates, and high standard of living. With its rich cultural heritage, stunning landscapes, and bustling cities, Japan offers a lot of potential for those looking to invest in property. In this article, we will explore the benefits of investing in property in Japan and of course GMG mortgage options available for investors. 

1. Surprisingly High Rental Income Potential 

One of the main benefits of investing in property in Japan is its strong rental market. There is a high demand for rental properties, particularly in popular tourist destinations like Niseko. According to Japan Property Central, the rental yield for apartments in central Tokyo ranges from 4-5%, which is considered high compared to other major cities such as New York and London. In Niseko, rental yields can range from 4-8%, depending on factors such as location, property type, and seasonality. Additionally, the Japanese government has implemented policies to support the rental market, such as tax incentives and subsidies for landlords.

2. Price Appreciation Outlook

Another advantage of investing in property in Japan is its potential for price appreciation. While property prices in some parts of Japan are already high, there are still many areas that offer more affordable options for investors. According to the Japan Real Estate Institute, property prices in Japan have been increasing steadily since 2013, with a 2.7% increase in 2021 and a 2.9% increase in 2022. In Niseko, property prices have increased by an average of 3-4% per year over the past decade, according to Niseko Property. Additionally, the Japanese government has implemented policies to encourage foreign investment in the real estate market, such as relaxing visa requirements and offering tax incentives for long-term investors.

3. Low Cost of Living 

Japan has a reputation for being an expensive country, but it also has a low cost of living compared to other developed countries. This can make it an attractive option for investors who want to keep their expenses low while they are managing their properties. 

4. Mortgage Options for International Investors 

GMG offers a range of mortgage options for international investors looking to invest in property in Japan. With a team of experienced mortgage advisors, GMG can help investors find the right mortgage for their needs. GMG offers both fixed and variable rate mortgages, and investors can choose from a range of repayment terms. 

In addition to mortgage options, GMG also offers a range of other services to help investors navigate the Japanese property market. This includes legal and tax advice, property management services, and assistance with the purchase process. 

Overall, Japan offers a lot of potential for property investors looking for a stable market with strong rental demand and the potential for price appreciation. Niseko, in particular, offers investors the opportunity to invest in a growing tourist destination with world-class skiing and stunning natural beauty. With GMG's mortgage options and other services, investors can navigate the Japanese property market with confidence.

5. GMG Concierge Program

We have a large list of exclusive secondary properties in Tokyo and Yokohama with very good return profiles which can be shared with you upon request.

Meanwhile we have extensive relationships with real estate developers with new projects which we can show as well in Niseko, Tokyo and Kyoto.  

Get in touch with us to learn more about access to our property portfolio as well our Japan mortgage options for foreign national investors at [email protected]