You Asked Us – “Can I Re-Sell my Investment Property?”

Japan Real Estate

Japan Properties

03 Nov, 2017 –

Because the Japanese property market is very active, globally second only to the USA, selling your property is a viable exit strategy. Since pricing for investment properties is generally dictated by rental yield than market trends, you can expect to sell your property for the same price or slightly higher. That is, assuming the rental rate hasn’t changed in the area. Land has depreciated over the last two decades, but the last five years have been kinder with central properties in hotspots like Tokyo and Fukuoka practically doubling. Although it’s anyone’s guess, values are expected to stay this way at least until the 2020 Olympics. From our experience, if your property is priced right, you should be able to sell it within two months.

Keep in mind though, that there are tax implications should you decide to sell your property. Foreign and local property owners who sell Japanese properties within five years can expect to pay 40% capital gains tax. After five years it drops to 20%. Therefore, as you can see, short-gains are not generally the goal. Property tax on units under 200 sqm, (which is usually the norm for most of our clients due to the higher yields involved), are 25% to 50% lower than larger properties.

(Source – Priti Donnelly, Nippon Tradings International”, Pic – Nippon Tradings International )

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