Announcement

Collapse
No announcement yet.

Top

Collapse

Bank Loan

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Bank Loan

    Is it possible as a non-Japanese to get a mortgage from a Japanese bank in Yen or even a foreign bank in Japan for that matter?
    I'm asking because I wish to by property here in Japan.
    What with the intrest rates so low!

    It just seems to make sense as I have been in Japan in the same apartment for 5 years paying 65,000 yen a month which accumulates to 4,000,000 yen, that would have been a very nice down payment, on a house. With the way property is going down by the month in price, it seems like the thing to do.

    I went in to a few of the big banks to ask for a mortgage, relatively a small loan at 10,000,000 yen, which over 15 years is about 50,000 yen a month. But they just turned around and said "Sorry mate, you are a gaijin" I have even been working at a reputable company for the last 5 years, so it wouldn't have been a problem to furnish them with letters of confirmation relating to my finances. Maybe I just don't have a kind looking face!

    So looks like all hope is lost, unless someone out there knows differently.

    If you have any tips or wicked loop holes, please drop me a line, it would be much appreciated.

    Cheers!

  • #2
    Originally posted by tommy d
    Is it possible as a non-Japanese to get a mortgage from a Japanese bank in Yen or even a foreign bank in Japan for that matter?
    I'm asking because I wish to by property here in Japan.
    What with the intrest rates so low!

    It just seems to make sense as I have been in Japan in the same apartment for 5 years paying 65,000 yen a month which accumulates to 4,000,000 yen, that would have been a very nice down payment, on a house. With the way property is going down by the month in price, it seems like the thing to do.

    I went in to a few of the big banks to ask for a mortgage, relatively a small loan at 10,000,000 yen, which over 15 years is about 50,000 yen a month. But they just turned around and said "Sorry mate, you are a gaijin" I have even been working at a reputable company for the last 5 years, so it wouldn't have been a problem to furnish them with letters of confirmation relating to my finances. Maybe I just don't have a kind looking face!

    So looks like all hope is lost, unless someone out there knows differently.

    If you have any tips or wicked loop holes, please drop me a line, it would be much appreciated.

    Cheers!

    1. Permanent resident visa
    2. 3 years at your present job
    3. 20-30% deposit if you want to borrow oney on a house.

    None of those and you dont even get an interview.

    Comment


    • #3
      Originally posted by tommy d
      IIt just seems to make sense as I have been in Japan in the same apartment for 5 years paying 65,000 yen a month which accumulates to 4,000,000 yen, that would have been a very nice down payment, on a house. With the way property is going down by the month in price, it seems like the thing to do.
      Cheers!
      So you want to borrow money to buy a property that is going DOWN in value. you borrow 10 million yen (which wont even buy you a garage in Japan) over 20 years in which time the value of your investment has dwindled to nothing. I know people whose houses are a 1/3 of the value of their mortgages. They are paying out on loans that they will never get back when they sell (which they cant as a paper loss becomes a real one)

      Eevn if you saved up the money from your rent, you still have to live somewhere and pay the rent while you are saving up your deposit. Call it forced savings, unless you plan to live in a cardboard box in Yoyogi park.

      Comment


      • #4
        Thanks Paulh for your informative reply.

        Comment


        • #5
          property value

          I just bought a house this year, and as Paul's original reply said, there are minimal requirements (not too sure about #3 though).

          With regards to property value - many people talk about the property values here going down and how that makes it a bad to to buy. I have to disagree. When I decided on the plot of land I wanted to buy, I didn't even think about what the value of the property would be in 20, 30, 40 years from now. Why? Because I'm still going to be living there! I bought the land and built a house on it to raise a family, not the value of my portfolio. The purchase was an investment in the future of my family and our quality of life. So, if you are buying land to flip it and make some bucks, now might not be a good time to buy, but if you are looking to put down some roots and raise a family, it's the perfect time to buy a chunk of the planet and call it your own.

          Comment


          • #6
            Get a government loan called (KOKO) forget about banks ,as Paul said you need PR. I took out a 20 year loan 10 years ago at 3% set for the whole 20 year. I managed to pay the whole loan off after 5 years though. In my case though the value is going up due mainly to the fact that the new Tsukuba express line will open next year making it just over a half hour from my hose to Akihabara.

            Comment


            • #7
              Originally posted by leafs_fan
              I just bought a house this year, and as Paul's original reply said, there are minimal requirements (not too sure about #3 though).

              With regards to property value - many people talk about the property values here going down and how that makes it a bad to to buy. I have to disagree. When I decided on the plot of land I wanted to buy, I didn't even think about what the value of the property would be in 20, 30, 40 years from now. Why? Because I'm still going to be living there! I bought the land and built a house on it to raise a family, not the value of my portfolio. The purchase was an investment in the future of my family and our quality of life. So, if you are buying land to flip it and make some bucks, now might not be a good time to buy, but if you are looking to put down some roots and raise a family, it's the perfect time to buy a chunk of the planet and call it your own.
              In most cases you either need a deposit or you need some kind of equity. It is a rare bank that will lend up to 100% of the value of the property. Normally they will want you to at least put in some of your own money, even if you have borrowed from your parents in law.

              I have not bought in Japan, but at the same time you never know when the government is going to put an airport or an expressway through your neighborhood or some developer will build a 15 story apartment that blocks out your sun or view.

              Usually land holds its value pretty well (as long as you dont pay too much for it and depending on area) but its the house you build on it that depreciates. Fine if you want to live in it, but if you want to sell it in 20 years or knock it down and build another that is where you lose money.

              My neigbors paid up to 38 million for a mansion apartment 10 or 12 years ago and they are now selling for 11 or 12 million.

              Comment


              • #8
                Thank you Clownpuncher, unique name by the way! (Does it literally mean punching a clown?)

                You said about a government loan (KOKO). I heard they have now stopped issuing them. maybe I'm wrong. Also I heard they only give a maximum of 5,000,000 yen.

                Anyhow apart from that. How do you go about getting a government loan?

                Thanks again!

                Comment


                • #9
                  I'm not sure if they still have these loans or not.

                  The amount you can borrow depends on what your yearly income is . In our case we borrowed 17.000.000 yen.We built using a housing company and they took care of all the paper work.

                  I suggest you vist some show homes make out like you're interested and ask the on site sales people about government loans.

                  Comment


                  • #10
                    Can't you apply for a home loan if you're married to a Japanese citizen?

                    Comment


                    • #11
                      Originally posted by marni
                      Can't you apply for a home loan if you're married to a Japanese citizen?
                      Spouse visa is not enough to qualify for a housing loan. You need permanent resident visa. You can always get divorced from a Japanese spouse or have them die on you and lose your visa and right to live in Japan.

                      Comment


                      • #12
                        there might be one

                        Originally posted by paulh
                        Spouse visa is not enough to qualify for a housing loan. You need permanent resident visa. You can always get divorced from a Japanese spouse or have them die on you and lose your visa and right to live in Japan.

                        i was recently apartment shopping and although i dont have prv the sales agent said there was 1 bank that offers to non-prv hoders. of course the interest terms will be far higher than for a more "secure" loan.

                        Comment


                        • #13
                          Not to start an argument but I got a second house loan without having permanent residency.This was about 2 years ago.

                          Initially I was concerned about even applying but the guy from the bank said that there are no such rules about PR but that my application would take a bit longer to go through.

                          Granted I had lived here over 10 years, my wife is Japanese, wife's father was the guarantor and I'm self-employed.

                          Comment


                          • #14
                            YES you can get a BANK LOAN YES YES YES

                            you said...

                            >1. Permanent resident visa
                            >2. 3 years at your present job
                            >3. 20-30% deposit if you want to borrow money on a house.
                            >None of those and you dont even get an interview.


                            Actually,this is not correct. Which is GREAT news. It was correct (generally) up until recently. People have been sucessful without permanent residency.

                            New Bank offering
                            A financial advisor just gave me the details, the bankers name etc. etc. You need a working permit, 2 years tax records (Japan) and of course the ability to service the loan. Up to 90%. I have CONFIRMED with the bank. This is a new program designed to increase business for the bank. This is the real deal. I was pleasantly surprised. This is good stuff.

                            They do have certain criteria which are based mainly on your income and assets. It seems you can have loan payments that would equal up to 40% of your monthly salary.

                            I have promised to send anyone interested directly to him. I guess this is valuable information. Hey this guy was my savior - he just gave me the opportunity to purchase a home here when that opportunity never existed. He was pretty helpful and I guess he should get the credit. go to www.gfi-financial.com and send them a mail. The guy's name is Grant. Nice guy.

                            Comment


                            • #15
                              xxxxxxxxxxxxxxxxxx
                              Last edited by steeny; 2008-01-30, 10:43 PM.

                              Comment

                              Working...
                              X