Flat Chat
We get the scoop from four housing professionals

Erik Oskamp
Owner, Akasaka Real Estate

Originally from The Netherlands, Erik Oskamp has lived in Tokyo for 4 1/2 years. He founded Akasaka Real Estate after buying a house—and discovering a pressing need for a realtor that would provide complete and reliable information in English. Akasaka Real Estate focuses on helping foreigners buy property in Tokyo, including both primary residences and investment properties. Other services include property management, help with obtaining financing, and organizing renovations. Akasaka Real Estate’s website also features property listings translated into English, as well as detailed statistics on the local market.

Why is buying better than renting?
Even including maintenance and taxes, owning will cost less than half of what you’ll pay to rent. Of course, you will have to pay off the loan, but even with these payments, the total monthly bill will be lower than the rent. Mortgage rates are around 2 percent and rental yields are 4.5-10 percent, depending on the type of property. Plus, you’ll never have to pay key money again.

Is this a good time to buy?
The cost of large properties near Hiroo and Omotesando, and apartments in brand new high-rise buildings, have gone down a bit recently. But this was after a tremendous price increase in 2006 and the beginning of 2007, so now these prices are getting more in line with the rest of central Tokyo. Even in these difficult conditions, overall prices in Tokyo are holding steady, showing the underlying strength of the market here.

The population of Japan is declining. How is this going to affect property prices?
In the countryside, the population is decreasing, so prices there are under a lot of downwards pressure. But the Tokyo population is growing steadily, so there is a continuous demand for new housing in an already overcrowded city.

Can foreigners buy property in Japan?
There are no legal restrictions for foreigners to own property in Japan, though getting a local mortgage can be complicated for temporary residents.

[For more about financing, see the interview with Tony Collins click here]

What kind of property do you recommend?
For a primary residence, I would recommend purchasing a property built after the earthquake standards were upgraded in 1981. However, to avoid rapid depreciation, buy a place that’s at least 10 years old. The optimum age depends on the location, and whether you are buying an apartment or house. In some cases, it makes sense to save money by buying an older place and getting it redone exactly the way you like it. Normally, enlarging rooms and cosmetic work is surprisingly cheap—but watch out for the costs of replacing a bathroom.

[For more about renovations, see the interview with Kenji Kagami click here]

What kind of problems are there with purchasing in Japan?
Overall, the biggest problem is a lack of information. Not only are most listings only available in Japanese, but there is also no public registry where real estate transactions are recorded. Local brokers normally only provide individual listings, so it is extremely time-consuming to get an idea of how the market works. To tackle this problem, Akasaka Real Estate automatically translates all listings in Tokyo on our website and provides daily price and yield charts for each area, sorted by train station.

Is it easy to buy an investment property and rent it out?
Purchasing an investment property in Tokyo is currently an attractive investment. Personally, I have put all my savings in it. Renting out an apartment in Tokyo is not complicated at all: renters normally pay the rent on time and keep the property in good condition. Furthermore, the law is pro-landlord, and taxes are low.

801 Calm Nogizaka Bldg, 9-6-27 Akasaka, Minato-ku. Tel: 03-6379-9175 or 090-3358-0954. Nearest stn: Nogizaka. www.akasakarealestate.com, info@akasakarealestate.com

Tony Collins
Business Manager, IFG Asia Mortgages

Tony Collins hails from the UK and is a 12-year Tokyo resident. His employer, IFG Asia Mortgages, helps foreign residents find loans for purchasing properties or remodeling.

What are the impediments faced by non-Japanese in obtaining mortgages in Japan?
Though there are no legal restrictions on foreigners purchasing property, loans depend on residency status. Foreigners on a visitor’s (three-month) visa are not eligible, and someone on a one- or three-year work permit can apply but may find it difficult to procure financing. Permanent residency (eijuken) is much preferred by banks. As for rates, foreigners pay the same as Japanese, but of course it depends on which banks’ product the applicant qualifies for. Unless you know how to apply, it can be difficult. Depending on the bank, the language barrier can be an issue but it usually doesn’t need to be. Certainly, this is an area where we can help.

What deposit, interest rates and mortgage terms can buyers expect?
Down payments are typically 10-20 percent. Rates start from 1.675 percent, variable to 2.25 percent fixed over 10 years and 3.2 percent fixed over 35 years.

When should buyers seek financing?
ASAP. Find out your borrowing capacity before looking for a property. We recommend securing financing first, before approaching agents—although final loan approval requires valuation of your property. The application process is usually 4-5 weeks.

What is the lending/risk environment right now?
Not many people are buying, so real estate prices are good. The subprime crisis in the US has not affected residential lending much in Japan so far, but it has had a big effect on Japan commercial lending, i.e. blocks of apartments. Depending on the country, lenders have tightened up considerably, some have increased margins and the situation is changing rapidly.

How does IFG Asia facilitate the process?
We offer advice from start to finish—about borrowing capacity, applications, making an offer, valuations, sales contracts, transfers of title, insurance, etc. We can also spot potential downsides to a client’s application and real estate. IFG Asia gets quotes not just from different banks, but also various branches of the same bank, as offers tend to vary. The client only needs to write their name and address; we do the rest. We also have readymade templates and translations of the banks forms so clients can understand them.

What types of services are available on the IFG Asia Mortgages website?
The site features all manner of advice and tips about borrowing, as well as a mortgage calculator, search forms and information about both international and Japanese loans.

8F Shimbashi Kato Bldg, 5-26-8 Shimbashi, Minato-ku. Tel: 03-3436-2120. Nearest stn: Shimbashi or Onarimon. info@ifgasiamortgages.com, www.ifgasiamortgages.com

Kenji Kagami
Licensed Architect/Mansion Reform Manager, Kagami Architects

Although he was born and raised in Tokyo, architect Kenji Kagami has quite the international pedigree: he went to high school in Canada before studying architecture at Waseda University and at the Graduate School of Design at Harvard. After two years working for Cicognani Kalla Architects in New York, Kagami returned to Tokyo 12 years ago and founded Kagami Architects, where he designs and supervises apartment and house renovations.

What got you interested in architecture?
I believe architecture—especially houses and apartments—is deeply related to human activities and emotions. The more I try to think what the space in a house should look like, the more I need to appreciate and get a sense of the lifestyle of the residents. My life experience so far has helped me develop my perspective on design and creating beautiful and comfortable living spaces.

What renovations have you been working on recently for homes in and around Tokyo?
My most recent renovation project is a mountain house in Hakone. The budget was limited, so the owner and I divided the renovation process into three phases. First, we addressed new structural supports for the building, because we wanted to remove some walls and open up the space. Second, we upgraded the plumbing, installed new electrics, insulation, wood floors and wallboard, and installed the new kitchen. The last phase of construction will include all the finishing work and a nice wooden deck. Some other recent works include a high-end apartment renovation and a traditional Japanese tea room within a house.

What kind of timeframe can people renovating their homes expect?
It really depends on the scope of the project and the type of space to be renovated. In general, most apartment renovations take 2-3 months of design and 2-3 months of construction. In the case of houses, two major factors influence the schedule: whether reinforcements are required for earthquake protection, and whether the bathroom, toilet and kitchen need to be removed or upgraded. If both are necessary, then the design takes about 3-4 months, and the construction schedule is lengthened as well.

How about prices?
The construction cost for a high-end apartment renovation is around ¥150,000-¥250,000 per m2, and a single-family house renovation with reinforcement and bathroom removal costs around ¥200,0000-¥300,000 per m2. My design fee is 12-15 percent of the construction cost. Whenever discussing costs, I always like to be flexible and point out ways that we can approach the project so that it meets the client’s needs and budget.

Do people typically come to you with specific requests, or do you make lots of recommendations?
I do make lots of recommendations to clients. People always come with specific requests, and I like to pay close attention to the kinds of spaces they like, and the kind of design scheme that appeals to them. However, there is often a gap between the vision that a client has and the reality of what can be done with a space. I always try to read the essence behind the client’s request and to match their image as closely as possible.

Do your clients usually help out with the labor?
Yes. I often recommend that my clients work on the projects and get involved in some aspect. This is a good way of cutting down the cost of construction, and provides a lot of helpful lessons on how to care for and maintain the building. By getting involved in the construction process, clients often form a deeper emotional attachment to the renovation and tend to care for the space more.

Do you have any other comments or information about buying and fixing up a house or second home?
The market for secondhand homes and older apartments is quite limited, and there is still a powerful tendency towards new buildings. The concept of renovating is not particularly well-known in Japan. Too often, valuable houses such as old Japanese townhouses and interesting weekend homes are abandoned or demolished just because they are old. By using a little imagination and remodeling these older houses, people can revive a space and provide an affordable, comfortable and unique lifestyle for themselves in Japan.

3-12-2-303 Shirokanedai, Minato-ku. Tel/fax: 03-5789-4146. Nearest stn: Shirokanedai, exit 1. www.kagami-reform.com/eng.html, info@kagami-archi.com

Ruth Shiraishi
Head of Business Development, Space Design

Hawaii native Ruth Shiraishi has been living in Japan for more than 20 years. In 2006, she became the first Western woman to receive the Registered Real Estate Transaction Manager License, and she hopes to play an important role in the internationalization of Japan through real estate. Shiraishi is now head of the Business Development Department at Space Design Inc., a company that offers fully furnished serviced apartments throughout Tokyo and Yokohama.

What specific needs are housing companies having to accommodate?
Well, life has really changed for the Tokyo expat crowd. Just 5-10 years ago, the typical expat came with family for two- or three-year stints. We now see a significant reduction in this type of visitor and notice most companies are slimming down and opting for two- to three-month visits to Japan for various projects. More and more, the top executive already lives in Japan or is a Japanese national. The “new expats” are the knowledge professionals who travel the globe supporting projects, fixing system glitches and executing corporate strategy.

How are Tokyo’s changing demographics affecting the housing market?
In a few years, it will be a great time to pick up a nice condominium built about right now. The real estate market has seen a deluge in supply and a weakening demand. Add rising oil prices and the possibility of “stagflation” (simultaneous inflation and economic stagnation), and you have a lot of unsold, empty condos on the market. These are available even in the best areas, so it might be a good time to learn about mortgage finance in Japan and get out there and shop for that Tokyo enclave you’ve always dreamed of. Walk into any “model room” and witness how Tokyo has gone from a “seller” to “buyer” market.

What are the accommodation options for short-term visitors to Tokyo?
Business, professional and student travelers to Japan have a wealth of options. If you don’t mind living a bit outside of the city, there are some extremely reasonable guesthouses and hostels. Some of these will have shower rooms and shared kitchens, but they are a nice way to meet other adventurers. Another option for those staying longer than two weeks is a serviced/furnished apartment. Those supplied by Space Design Inc. were built within the last six years, and are located less than 10 minutes on foot from hub train stations throughout Tokyo, with locations in Shinagawa, Yokohama, Takanawa, Nihombashi, Hakozaki, Kioicho, Hirakawacho, Kagurazaka, Osaki, Hamamatsucho, Shiba-Koen, Ginza and Akihabara. As a bonus, the apartments come with bilingual support, equipped kitchenettes and high-speed internet. A quick search on the net for “serviced apartments Tokyo” will produce quite a large selection of apartments in different areas. Just make sure to ask exactly what is not included in the rent, as some visitors are surprised by the hidden “cleaning fees,” etc., that some suppliers charge.

What are some common hurdles faced by foreign buyers/renters?
There are cultural and psychological barriers that make renting or buying property in Japan difficult for non-Japanese. One aspect is the “conservative carefulness” approach of Japanese landlords and owners. In building construction, this results in extremely well-built, well-organized buildings, but in terms of real estate deals, it can often lead to overly demanding requests for “commitment” from the lessee or buyer. Key money, security deposits and other costs related to closing a rental or sale are all part of the owner/landlord’s effort to make the transaction as “risk-free” as possible. Foreign buyers and renters should try and be sensitive to the need for the seller/landlord to feel secure in the transaction, and lean on their agent for advice on how best to create this trusting relationship. If the landlord/owner you are dealing with does not seem concerned with your commitments and is not asking for key money, etc., there might be something wrong with the property that makes it difficult to rent or sell to Japanese. That, in my book, would inspire a deeper look into the structural integrity, history and current state of the property.

What assistance can Space Design offer?
Space Design owns/operates furnished serviced apartments for visiting executives and professionals in Yokohama and Tokyo. We have 17 buildings run completely by us with the needs of the globetrotting executive in mind. BUREAU and B-SITE serviced apartments are the perfect alternative to extended hotel stays. We are friendly, fast, flexible and fair in every aspect of the service. We can also provide accommodation for people while they search for temporary accommodation or permanent homes.

2F Nippon Press Center Bldg, 2-2-1 Uchisaiwaicho, Chiyoda-ku. Tel: 0120-710-677. Nearest stn: Kasumigaseki. www.space-d.co.jp/en

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Homeward Bound
Whether it’s a guesthouse or a serviced luxury apartment you’re after, look no further than these specialists

Fontana

Fontana is a leading source of affordable housing solutions for both foreigners and Japanese in Tokyo. The friendly staff speak English, German, Korean, Polish, Turkish and Japanese, and are ready to help guests find a convenient, comfortable place to live in central Tokyo. Be it a room in a guesthouse, a shared apartment or a private home, Fontana’s properties are always furnished, which makes for a pleasant and hassle-free stay. With guesthouses and apartments located all over Tokyo, it’s easy to find what you’re looking for. Locations include Nakano, Shinjuku, Shibuya, Roppongi, Ikebukuro, Hiroo and Azabu. Rent for private rooms in a guesthouse start at ¥65,000 in the Nakano, Yutenji and Toritsu-Daigaku areas, with all utilities and internet included. If you’re looking for a private apartment, Fontana has units available in Nakano from ¥70,000; Shinjuku from ¥85,000; Shibuya from ¥120,000; Roppongi from ¥110,000; Ikebukuro from ¥85,000 or Hiroo from ¥85,000. No agency fees, key money or guarantors are required—just choose which apartment you like and move in. It’s that easy. Give Fontana a call, visit the website or walk into the office in Shin-Nakano.

1F Asahi Mansion, 3-31-5 Chuo, Nakano-ku. Tel: 03-3382-0151. Open daily 9:30am-7pm. Nearest stn: Nakano. www.tokyocityapartments.com

Ichii Corporation

Part of the Ichii Corporation, Japan Apartment (JAPT) takes the hassle out of finding and renting an apartment or guesthouse in Tokyo. JAPT doesn’t require key money, deposits and guarantors, which is why its 700 properties in 90 locations get snapped up quickly after becoming available. Another perk of choosing JAPT is that all residences are fully furnished, with many including cooking appliances, silverware, furniture, clean linen and even flat-screen TVs. An internet connection is arranged before you even move in, eliminating the need for annoying bureaucratic hoop-jumping. JAPT’s bilingual website and English-speaking staff make searching, choosing and moving into an apartment as easy as it should be.

www.japt.co.jp/e-top

Leaf Court Shintoshin

Want to stay in a sophisticated luxury serviced apartment in Tokyo? Leaf Court Shintoshin offers easy access to central Tokyo, with Shinjuku and Shibuya both only a few minutes away by train, and Roppongi just 14 minutes away. The location is also attractive because the shopping street that runs from nearby Hatagaya station to the apartment is convenient for buying daily necessities. Rooms range in size from 25-36m2 and come fully furnished, with a desk, bed, TV, air conditioner and more, along with a refrigerator, microwave and other kitchen appliances. Free unlimited internet use, room cleaning and linen exchange come as standard, and residents can enjoy the onsite gym, sauna and billiards room for free. A breakfast service is also available, and the front desk provides round-the-clock support. No key deposit or guarantor is required, and rooms are available by the week or month.

2-3-4 Hatagaya, Shibuya-ku. Tel: 03-3299-2800. Open daily 24 hours. Nearest stn: Hatagaya (Keio New line). www.arai-s.co.jp/thing/monthly, lcshinto@arai-s.co.jp

Monthly Chintai Inc.

Monthly Chintai Inc. publishes the Weekly Chintai, Japan’s most widely distributed rental circular, as well as the Tokyo version of Zagat Survey, a popular restaurant guide appearing in major cities worldwide. In addition to its publications, Monthly Chintai supplies real estate in and around central Tokyo, such as Hiroo, Harajuku, Roppongi, Azabu, Akihabara and Jiyugaoka. Options range from family homes and apartments to business offices. Rooms come fully furnished, including appliances. A free internet connection is standard, and all “superior-class” rooms and above are equipped with a double bed. There is no security deposit charge, and a 24-hour support center, with English-speaking staff, is available. Chintai also uses a system whereby customers accumulate points depending on the length of their stay, and can eventually redeem these for gifts. Room rental periods start from one week; those planning to stay for a period over three months can contact the company for a chauffeured tour of various properties. Call or email for more details

Tel: 0120-038-548. www.monthlychintai.com/en, mc-inq@monthlychintai.com

Oakhouse

Oakhouse Co., Ltd was founded in 1992 to serve both foreigners and Japanese clients looking for housing. Specializing in apartments and guesthouses, Oakhouse offers 1,300 rooms in 85 locations in the Tokyo area. At the end of 2005, the Oak Hotel opened in Ueno and has proved a big hit with foreign visitors. Oakhouse lets customers choose the apartment and guesthouse that suits their needs, allowing them to pick by location, appearance, environment, etc. No deposit, key money or guarantor is necessary—simply pay a small application fee (between ¥5,250 and ¥21,000), rent and utilities. Overseas applications and payment by credit card are accepted. Discounts are available for members of the Oakhouse Club, which is free and open for all to join. Monthly rent for an apartment or single room with air conditioner, TV, bedding, furniture and free internet access starts at ¥84,000 in Kichijoji, ¥86,000 in Kami-Igusa and ¥73,000 in Tsurukawa (newly opened apartment). Guesthouses start from just ¥59,000 in Unoki, ¥48,000 in Shin-Shibamata and ¥62,000 in Kamata. A shared room in a dormitory (with security at the entrance) goes for ¥36,000 in Gotanda, ¥35,000 in Meguro, ¥45,000 in Harajuku and ¥50,000 in Roppongi. Oakhouse guesthouses and apartments give residents the chance to interact with people from different countries through events and parties, and a multilingual information center provides news about the latest accommodations as well as general information about living in Tokyo.

4-8-3 Ikebukuro, Toshima-ku. Tel: 03-3981-0091. Open Mon-Sat 1-8pm, Sun noon-6pm. Nearest stn: Ikebukuro. www.oakhouse.jp

Oceans

Oceans offers a wide range of accommodation, from luxury studio apartments to five-bedroom houses, with rents ranging from ¥200,000 to ¥4 million. Properties are located in such foreigner-friendly areas as Azabu and Omotesando, as well as Hiroo, Roppongi, Ebisu, Shibuya, Aoyama and Yoyogi, so they are perfect for professional workers and expatriates who can sign lease agreements under a corporate contract. Oceans staff always put clients first and believe in the Japanese saying, “The customer is king.” The company’s database of 70,000 rental properties is updated daily and can be accessed on the homepage. The site also features useful living information for new Tokyo residents, like basic cable and satellite TV plans, internet availability, local fitness clubs, international schools, shops, restaurants and bars. In other words, Oceans acts more like a concierge than a broker for its clients.

Tel: 03-5766-7747. www.oceans.co.jp, sales@oceans.co.jp

Sakura House

In Japan, the definition of a “guesthouse” can sometimes seem vague. At Sakura House, it means furnished monthly accommodation with a private bedroom and shared kitchen, dining and bathroom facilities, where you can meet housemates from all over the world. Since Sakura House opened its first guesthouse in Harajuku in 1992, facilitating cross-cultural interaction has always been one its objectives. Thanks to that winning formula, its number of houses has grown to 186 throughout Tokyo (with a total of 1,639 rooms), accommodating people from some 89 countries. Every night, hundreds of Sakura tenants share their experiences of Japan. Many residents pick Sakura House initially because it is easy and cheap, but end up staying long-term for the sense of community. For the latest information about new properties and availability (with new rooms opening every month), visit the multilingual website or call the Shinjuku headquarters. The office is open until 8pm, so viewings can be arranged after work or school. Staff speak English, French, Chinese and Korean, and rent can be paid by Visa or Mastercard.

2F Nishi-Shinjuku K-1 Bldg, 7-2-6 Nishi-Shinjuku, Shinjuku-ku. Tel: 03-5330-5250. Nearest stn: Shinjuku or Shinjuku-Nishiguchi (Oedo line). Open daily 8:50am-8pm. www.sakura-house.com

Tokyo Apartments (Enplus)

Tokyo Apartments, a division of Enplus Inc, offers a wide range of quality serviced and rental apartments for both short- and long-term stays. Experienced bilingual staff can help you find the accommodation that best suits your needs from a selection of properties in all of the city’s 23 wards. For more information, contact Tokyo Apartments or visit the website. The company also operates a portal website (www.mondestay.com) for serviced apartments and offices around the world.

2F Nomura Bldg, 4-8 Yonbancho, Chiyoda-ku. Tel: 03-6273-0181. Open Mon-Sat 9:30am-6:30pm, closed Sun. Nearest stn: Kojimachi or Ichigaya. www.tokyoapartments.jp, request@enplus.co.jp