Despite the fact that Osaka is the second largest city in Japan, property price drops sharply from Tokyo. An average price of property in Osaka is JPY 17,510,000 with a year-to-year change of 2.2%. Despite the fact that the population of the City of Osaka has been a downward trend, Kita ward’s population is booming with a rapid development of multi-story apartment complexes.
- Tips for choosing a right property in Osaka
- Things to watch out when you buy property in Osaka
- Best neighborhood in Osaka
- Worst neighborhood in Osaka
- How to buy a property in Japan
- About Tax (as of December 2014)
- Condominium, equipped with a security system – a property, equipped with an entrance door-unit/unit-unit intercommunication system is preferred for a security reason.
- Condominium, equipped with trash collecting station – in Japan, trash (burnable/non-burnable/recyclable) are to be collected at a certain day of every week. Trash is to be allocated a designated spot on a street in the morning. Some condominiums are equipped with a trash collection room, where residents can throw them 24/7.
- Toilet, equipped with washlet – washlet, an electric toilet seat (warming capability) with water spray function for washing, is a standard feature at most of the recently built properties and becoming a social norm in Japan. But some of old property is still equipped with a conventional toilet seat.
- Property in a proximity to a convenience store – due to its convenience, a convenience store is one of the prominent life infrastructures in Japan and its proximity from a residence is quite important to many Japanese.
- River/bay view property rents out with higher price – a property that retain Tokyo bay or river view rents out higher than non-aquatic views.
- Avoid condominium property on the lower level, especially the 1F (ground floor in British term) This is attributed to security and amount of sunlight the unit can receive.
- Avoid properties that are built before 1976 – in 1976, the Building Standards Act was amended to cater higher resistance against earthquake.
- Avoid property that is more than 10 minutes away from a station – an east of rentability and rent drop beyond the 10 minutes threshold.
- Avoid property, equipped with a modular bathroom.
- Preferable to have a separate toilet and bathroom.
- Avoid property facing north.
- Avoid property that is made by wood.
- Avoid southern part of Osaka. A population projection and future development of Osaka are more promising in the northern part of the city – around Umeda/Osaka Station.
Tezukayama & Kitabatake (Sumiyoshi-ward)
These are one of the most famous neighborhood for upper class people. Lots of celebraties and famous politicians have been choosing the area for their home.
There are many big parks and shops near by and crime rate is extremely low.
It is one of the most sought after and popular residential area for families.
It is very quiet residential place with good public schools.
Kita ward / Fukushima ward
In Osaka, Umeda/Osaka Station is the center of city and there is a room more developments in the future. Plus, albeit the population of Osaka is in downward trend, the vicinity of Umeda is increasing.
This place is located in Nishinari ward and south of Shin-imamiya railway station.
It has been infamouse for day laborers who are mostly homeless. Thus, Nishinari is a big base for Japanese Yakuza (mafia) group.
Everything is super cheap in this area for somehow, however, crime rate is high and even locals in Osaka do not get close. It is highly recommended to avoid this area completly.
When you buy:
Stamp duty for sales contract
3% of the tax value of the property
For second-hand condo, you may be required to pay the rest of peoperty tax of the year that you purchased.
For New condo, you will be required to pay sale’s tax, which will be taxed on value of the land.
When you hold:
Real estate acquisition tax
Although it is called accuisition tax, tax notice will be sent out 6 month to 1 year and half after you purchase the property.
Land and building are evaluated separetly for taxation purpose. In general, 3% of the evaluetion result (minus special tax ease if applicable) is taxed however, currently, there is a special exemption applies. Please check with real estate agent or Tokyo tax office.
Property tax (&City development tax)
Land and building are evaluated separetly. Tax rate applies to the evaluation every 3 years. The calculation of tax rate is extremely complicated and there are many different kinds of special exemption apply, therefore, please check with local tax office in Tokyo or Japanese accountant.
When you rent out:
If you have rental income, you will need to file income tax. You can deduct cost for the rental property including depriciation of the tax and special exemption, if there is any. Taxable rental income will be merge to another income if any, and progressive tax apply. You will need an accountant to calcurate how much you need to pay the tax.
When you sell:
Capital gain tax
It depends on how long you own the property.
If the period of ownership is less than 5 years: 30% of the capital gain is taxed.
If the period of ownership is more than 5 years: 15% of the capital gain is taxed.
There is “Special tax for reconstruction of earthquake” applies.
2.1% of capital gain tax amount is taxed from the period of 2013 to 2037.
When you die:
Calculating the inheritance tax is extremely complicated since it depends on who the successor are and what kind of inheritance you have. Please refer to accountant or tax professional.