There are many questions regarding houses or apartments in Japan. Some ask: Are houses in Japan small? Is buying a house in Japan expensive? Is rent in Japan expensive? Is it worth living in a rental or buying a house? We will answer these and other questions in this article.
Many people tend to generalize houses in Japan because they saw on television people living in a cubicle. In reality, this happens when more than half of the Japanese population prefers to crowd into the same city.
Japan is very large; it is possible to have mansions, giant multi-story houses, or a small apartment if you want less work. Life in Japan is busy, food in restaurants is cheap and accessible. Japan is simply practical!
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What are Houses in Japan Like?
A common misconception among foreigners is that houses or apartments in Japan are extremely small. Yes, apartments in central Tokyo can indeed cost a fortune, both for rent and purchase.
But on the other hand, there are houses for sale in many regions of Japan for super cheap prices; there are places where the government even offers land and houses for free. All this is due to the overcrowding mentioned at the beginning of the article.
So, those who think that Japan lacks space and that everyone is living cramped and crowded are completely wrong. Neither I nor most Japanese see the need for a giant house that requires a lot of cleaning.
Most houses range from 40m² to 90m², but it is common to find huge houses of 200m² or tiny apartments of 20m² in cities like Tokyo. It may seem small, but most houses have 2 stories and a convenience that Western houses usually do not have.
Some of these conveniences are the ofuro (bathtub), a bathroom separate from the bathing area, air conditioning, sliding doors, tatami flooring, and many other unique features. Despite being small, Japanese houses are powerful; I would want one here.
If you buy a plot of land, the construction of a Japanese house takes 4 to 6 months to complete. Generally, construction companies offer standardized or customized projects.
How Much Does a House or Apartment Cost in Japan?
This is quite relative; it is possible to find cheap houses for 100,000 Reais, but prices can easily exceed 1 million Reais depending on the location and size. Due to the Japanese salary, most prefer to pay rent rather than buy a house.
Is a house in Japan very expensive? No, it is not always expensive. First, you should never compare prices of things in another country using our currency, the real. The economy and salary of the country are completely different.
To get to know the size and price of properties, visit this site by clicking here. Let’s make a comparison with a table below, considering that the m² refers to the area of the house and not the land, and that all the houses below have an ofuro and a separate bathroom.
| Price 円 | Price R$ | Size m² | Location | Others |
| 198,000,000 | 6,000,000.00 | 400 | Osaka | 5 Stories 6 rooms |
| 61,800,000 | 1,800,000.00 | 256 | Kanagawa | 2 stories 6 rooms |
| 34,800,000 | 1,000,000.00 | 122 | Chiba | 2 stories 3 rooms |
| 23,800,000 | 722,000.00 | 63 | Tachikawa – Tokyo | 2 stories 3 rooms – 2012 |
| 6,000,000 | 182,000.00 | 87 | Gifu | 2 stories 4 rooms |
Did you notice that there are houses cheaper than in Brazil? Of course, some of these houses need renovation; you should know well before buying. None of the houses mentioned above are small as some like to generalize.
In Japan, where the minimum wage starts at 5,000 Reais, is it expensive to pay 700,000 Reais for a house? Remembering that everything needs to be researched and analyzed. Owning houses in Japan also comes with other expenses such as taxes, construction costs, and maintenance.
Should I Buy or Rent a House in Japan?
Despite the affordable price, it is not easy to find a house in a pleasant location, close to a train station, near your job. Additionally, it is necessary to pay insurance, taxes, and go through a lot of bureaucracy.
Often, buying a house without examining the contract can lead to many problems. Many prefer to live in rentals because they work in factories with uncertain jobs, cannot save money, or cannot afford financing.
Some single people find it easier to live in a rented apartment in a big city. Many Japanese, especially foreigners with an uncertain future, prefer to pay rent rather than spend millions on a house.
Some rents are very attractive; some even offer internet, water, gas, insurance, and electricity for free. Others think that renting a house gives less work, fewer expenses, and allows them to live their lives without worrying about anything.
They think that just having a place to lay their head and put their stuff is enough for the busy lifestyle they lead. Many use their salary and free time for leisure and have no reason to stay at home; some even prefer to live in small apartments that look like capsule hotels.
When Japanese people intend to marry and start a family, buying a house becomes one of their goals. Some young people’s parents save money from their childhood to gift their child a house. Other children inherit a house from their parents.
Thus, whether to live in a rental or not is not due to economics, but a personal choice. No matter the country, there will always be families that desire a house but cannot afford to finance or buy one.
The fact is that owning a house in Japan is not impossible and not that difficult; if you desire it, you have to go after it. It is necessary to analyze the circumstances to know if it is worth buying or living in a rental.
Is it Possible to Finance a House in Japan? What is Needed?
A person can only finance a house by paying in installments until the age of 79. It is possible to make a down payment to reduce the installments, as well as it is possible to finance 100% of the value according to your annual income.
If a person buys a house that costs around 30 million with financing for 35 years, with no down payment, they will pay about 110,000 yen per month, paying about 15 million yen more in interest. It is necessary to be aware before financing a property.
To finance a house, it is necessary to have a gensen (income certificate), inkan (seal), and the zaishoku shoumeisho (employment certificate). It is preferable to also have permanent residency and be enrolled in some social insurance or health insurance.
Some banks require additional requirements such as stable employment for more than 3 years, a guarantor, or not being in another financing. You need to fill out forms entirely in Japanese to proceed with the financing of a property.
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