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Registration tax is the imposed tax, when you register your asset on legal affairs bureau. When purchasing Japanese condominium of 20 million yen to 50 million yen,
you should pay around 300,000 yen.
Department stores sales April +13.7%
Sales for foreigners tripled. Japan department stores association released the April sales. The sales increased +13.7% yoy. One of the main reasons is the same period of last year the consumption tax rose. The other reason is sales for foreigners tripled.
On the other hand it means the sales for domestic declined.
Sales for foreigners hit the record high, 19.7 billion yen. It accounted for 4.1% of the total sales.
Provided that the property price in commercial area is affected by the sales, hereafter it would be more affected by world economy and the yen in depreciation.
Mansion price increased +5% (yoy).
The story on the street is as below.
Today is the settlement date which I have worked for the seller. That reminded me of one tip that we should mortgage your properties.
The necessary documents to change the ownership are as below.
Notice of information for registration identification (which only the owner knows)
Company stamp (which the owner keeps)
Certificate of the company seal impression (the only owner can apply for the legal affairs bureau)
Certification of whole data for the property (anybody can take)
Certification of assessed value of fixed assets (the only owner can apply for the legal affairs bureau)
To change the ownership, the sellers are required to put your seal and visit the legal affairs bureau) However you can assign a representative to acquire the documents. Some owner who has lack of attention to read the documents would put his seal on any documents. As most owners has lack of trading opportunities, once they rely on someone, they would put his seal on any document.
When owners intend to sell the property with the mortgage (even when not intending to), it will be reviewed by loan holder. It means the mortgage is strong deterrent to the trouble.
Acquisition tax is imposed when purchasing property. The tax is calculated with 3%of the fixed asset value of land and building. The fixed asset value of the residential land is reassessed in half.
Brokerage fee is paid to a property agent as contingency fee. The maximum amount of brokerage fee is limited by Building Lots and Building Transaction Business Law. To calculate the upper limit, the selling price is divided into 3 range as below and each of them are multiplied by the fixed percentage.
Base on selling price
Less than 2 million yen 5% +consumption tax
More than 2 — less than 4 million yen 4%+ consumption tax
More than 4 million yen 3% + consumption tax
When purchasing a Japanese property, you need roughly 5% to 6% of the selling price as expenses and taxes such as brokerage fee, acquisition tax, judicial scrivener fee, registration tax, stamp duty , consumption tax and adjustment of fixed tax.
The reason that we can’t determine the expenses with the selling price is that acquisition tax and registration tax are based on a different standard table which is called “ the fixed asset tax table standard”. In addition the fixed asset tax is imposed with both of land value and building value on the land, which deteriorates over time year by year.
News about violent crimes in Japan sometimes are broadcasted. When we watch the news, we are likely to be afraid that they will hit our property. The recent increase on foreign workers and the collapse in society may bring the rise of violent crimes. However the current survey denies the worry. The ratio of murder crimes is decreasing year by year.
Line graph is clearance rate
Bar chart is the number of the murder crimes
The survey by National Police Agency
Earthquake building codes in Japan
When you purchase an apartment or condominium, you should know it is “kyu-taishin” or
“shin-taishin” It is very important distinction. Simply speaking “kyu-taishin” is fragile.
“shin-taishin” is unbreakable. Of course most people know its difference, so the yield ratio between the two is so different.
Major building code change to the building standards act occurred in 1981.
Buildings built to the pre-1981 standard are called is “kyu-taishin”.
Buildings built to the new standard are called “shin-taishin”.