fbpx
    • Spring
      • video

        Finding the Flow from Kansai to Kochi

        Shikoku’s many mountains, valleys and proximity to the ocean has made it a hidden gem for rafting, kayaking and canyoning enthusiasts willing to take a step or two further from the Golden Route of Kyoto and Osaka.

        Solace and Giant Salamanders in Akiota

        Just beyond Hiroshima City is a tranquil outdoor destination home to some of Japan's last remaining oosanshouo, the elusive giant salamander.
        Kyoto Oni Trail Outdoor Japanvideo

        The Oni Trail: Hiking Coastal Kyoto

        The mystical oni is prevalent in Japanese children’s stories, usually as a way to scare kids straight. Adventure Travel Kyoto is shedding a new light on this folklore and developing a new hiking route in the countryside of Kyoto.
    • Summer
      • the nomad pasche family

        The World is Our Playground

        The Pasche family has been cycling and living out of a tent in remote corners of the planet for the past 13 years on four continents spanning 50 countries.
        adventure travel world summit in hokkaido

        Adventure Travel World Summit in Hokkaido

        The ATTA will host their first Adventure Travel World Summit in Asia in Hokkaido, Japan. We caught up with ATTA Director Shannon Stowell to find out more about the adventure travel industry and how it continues to grow and evolve.
        mead brewing in japan

        The Sweet Secrets of Brewing Mead

        Wander into the world of mead brewing and find yourself immersed in a fascinating journey spanning centuries and continents.
        the knights in white lycra

        The Knights in White Lycra

        Each year a group of cyclists head to the deep north towards Tohoku’s vast rice fields and coastal trails to help transform the lives of neglected children.
        sea to table yamagata

        Sea to Table in Yamagata

        An unforgettable way to intimately explore the Shonai Region in Yamagata is a culinary experience bringing bounty of the sea straight to your table.
    • Autumn
    • Winter
    • Near Tokyo
      • getting dirty in japan

        Getting Dirty in Japan

        “Getting Dirty in Japan” is about getting out of your comfort zone and into some exciting outdoor adventures and destinations in Japan.
    • Near Kyoto
    • All Regions
    • Article Map
    • Ocean and Beach
      • getting dirty in japan

        Getting Dirty in Japan

        “Getting Dirty in Japan” is about getting out of your comfort zone and into some exciting outdoor adventures and destinations in Japan.
    • River and Lake
      • getting dirty in japan

        Getting Dirty in Japan

        “Getting Dirty in Japan” is about getting out of your comfort zone and into some exciting outdoor adventures and destinations in Japan.
    • Mountain and Land
    • Sky
      • getting dirty in japan

        Getting Dirty in Japan

        “Getting Dirty in Japan” is about getting out of your comfort zone and into some exciting outdoor adventures and destinations in Japan.
    • Snow and Ice
      • climbing mt. fuji off season

        Mt. Fuji: The Path Less Traveled

        Fuji-san is the most climbed mountain in the world. If you are in good shape, there is a way to avoid the traffic for a more peaceful Mt. Fuji experience during the off-season.
    • Travel
      • the nomad pasche family

        The World is Our Playground

        The Pasche family has been cycling and living out of a tent in remote corners of the planet for the past 13 years on four continents spanning 50 countries.
    • Food and Drinks
      • the nomad pasche family

        The World is Our Playground

        The Pasche family has been cycling and living out of a tent in remote corners of the planet for the past 13 years on four continents spanning 50 countries.
    • Races and Events
      • fuji rock japan

        2023 Summer Music Festivals

        Get into the groove this green season while enjoying the great outdoors with family and friends.
        Summer Events Fireworks Festivals in Japan

        2023 Fireworks Festivals in Japan

        Enjoy these fireworks festivals held throughout Japan this summer and autumn.

Financing your Property

Obtaining a loan to finance your dream house has become easier over the past few years. Despite the market turmoil, several lenders are willing to make loans available to creditworthy individuals, even if they have permanent residency. These include National Australia Bank, Commonwealth Bank Australia, HSBC, Suruga Bank and Mizuho Bank.

Commonwealth Bank Australia is one of the more active of these lenders, especially for resort properties. The loan process can be taxing in the best of circumstances, but greatly simplified by hiring a mortgage broker.  

“I’m always happy to speak with prospective borrowers without any commitment to help them understand if it’s possible to get a loan for the property they wish to finance,” says Tony Collins of IFG Asia Mortgages. A broker will review your objectives and financial circumstances to match you with the most appropriate lender. The broker can also check with multiple lenders, saving you time and energy, since you won’t have to run around and do it yourself.  

It’s also a good idea to request a “pre-approval” before negotiating your purchase contract on a property. This will give you an idea of what amount you can borrow, and in which geographic areas a lender is willing to provide financing.

Resort areas such as Niseko, Karuizawa, Hakuba and Minakami are generally fair game, but property in Okinawa can be more difficult. A pre-approval will increase your bargaining leverage when negotiating your purchase price, as you will know both your financial resources and the timeline in which you will be able to close on the purchase.  

Preparing for the loan application process involves gathering key information so the lender can determine if you will be able to repay the loan in accordance with the initial repayment schedule.

Collect three years of tax returns, with details on all forms of recurring income (such as salary and bonuses). Prepare a table of your financial assets (bank deposits, CDs, stocks, bonds, etc.) and liabilities (mortgage loans, credit cards, automobile and student loans). Also bring along your CV to show your employment history.  

Be sure to consider the affordability factor when planning for your loan. Unexpected circumstances such as not getting a bonus, loss of a job or repatriation should all be considered. Evaluate local rental rates for similar properties in the area in which you’re contemplating your investment to see what type of rental income you might get, should you need to let the property.  

If the rental income comfortably covers your loan payment and property management expenses, you can remove one potential point of worry.  

For resort properties, lenders typically lend about 50% of the property valuation. Valuing property in resort areas can be more difficult than in urban areas, so collecting information on recent sales of similar properties is a good idea.   When purchasing used properties, lenders often look for assurance the property conforms to local building codes. Obtaining a copy of the proof of inspection (kakunin zumisho) is also strongly advised.

In addition to the purchase price, various costs related to the acquisition and financing typically add 8-10% to the total cost. Real estate brokerage is generally 3% (but in this market, you can likely negotiate this lower). Loan origination fees range from 0.50% to 2.0%.  

Other fees include the mortgage broker (if you use one), legal scrivener for mortgage registration and services, real estate transaction tax and property insurance. Some lenders will finance some of these costs as part of the loan, so be sure to inquire with your lender.

[novo-map id=2 individual=”yes”]

Outdoor Japan logo tree

Related

Latest posts

Categories