• 2021.04.29
  • Buy Japanese property
  • Housing Japan
  • Japan property
  • Japan Property Investment
  • Land price Japan
  • Leasehold in Japan

Housing with fixed-term land lease (leasehold)

Housing with fixed-term land lease (leasehold)

Hello!
Masaki Tanzawa, professional of property brokerage and management.

What is leasehold in Japan?
Fixed-term land lease by law is a lease agreement of which period is over 50 years. Borrower needs to return it after 50 years restored to its original state and no update.
The above law applies to general cases like housing.
Leasehold agreements for business use have different periods.

Leasehold housing grows, why?
It is common so far in Japan to purchase land and house with freehold.
Japanese have a mind that leasehold means just rental of others land, and feels uncertain.
But currently consciousness of ownership in Japanese is changing to that it will be adequate to inhabit a fixed location for 50 years.
So the number of leasehold housing with fixed-term is increasing.
In fact the number of leaseholds in houses is 5,943 and in condo units is 25,389 during 1993 – 2021 end of March.

Good points of leasehold
The land price is lower than freehold, ordinarily it is about 70% of the freehold price.
Property tax for land is not taken.

I foresee leasehold property will be expanded, and it is a considerable way to utilize it fully for a fixed term.
I think anyway it is the point that the initial investment amount is smaller than usual.
It is possible to introduce solely leasehold property if you wish.
Please email me anytime if you have any questions.

Masaki Tanzawa
AER NEXT LLC.
7F, KeioShinjuku321 Bldg., 3-2-1, Shinjuku, Shinjuku -ku, Tokyo, JAPAN 160-0022
TEL +81-3-5341-4611
FAX +81-3-5341-4623
Contact person: Masaki Tanzawa
Email: tanzawa@ablife.jp
License: Tokyo(1)105965
URL:https://www.investorvisa.jp/investjapan/
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