Buying a property - and no clue

[Aramusha]

Hello forum,

I am considering buying a property on the Chuo-Line (land + house). The other day I met the owner and the first impression was pretty good.
I would like to consult a profession to conduct a house inspection - my question would be: What is the correct term to be used in Japanese to describe a house inspection? Follow up question: Does anyone here have a recommendation regarding a house inspector? Although my Japanese it not too bad, I´d appreciate if that person can also communicate in English (not a must). I would like to get a better understanding of the condition of the house in general before taking any further steps.
The owner said they could introduce me to the building company which was in charge back in the days. The building is already 35 years old.

Right now, I´m working on the application for my PR visa. Already 10 years in Japan, with wife and kid, always payed taxes on time and never got in trouble with the law. So, I´m confident. Next big step would be finding a bank and dealing with a loan - that could prove the most difficult part to be honest.

The house is a two-story building. I would like to rent out the 2nd floor (apartment) and use/rent out the 1st floor (big multi-purpose space which was initially constructed for the practice of martial arts).

So, back to my initial question: What about a house inspection?

Thank you and regards,
Michael

[Deep Blue]

This thread may be useful

https://www.retirejapan.com/forum/viewtopic.php?t=3646

It contains a recommendation for the house survey company I used.

[Tkydon]

What are the construction materials?
This will determine the residual value of the structure after depreciation.

If you are planning to rent out the property, you will not be able to get an owner occupier loan.
You would have to get a commercial loan, which will require a large down-payment (think in excess of 30%), and will have a high interest rate (think in excess of 3%, or maybe 4%).
You would be able to take Depreciation as an expense, and reduce your Income Tax at your Marginal Tax Rate. It depends again on the construction materials how much depreciation you can claim.
It will depend how much you can get for rent, whether this would be economically viable or not.

I think you will have to wait until you get your PR before the banks will talk to you about a Commercial Loan.
The main bank that is know to be active in the Commercial Market is Tsuruga Bank, but there may be others....

[Aramusha]

This thread may be useful

https://www.retirejapan.com/forum/viewtopic.php?t=3646

It contains a recommendation for the house survey company I used.

Fantastic! Very helpful and the company mentioned looks promising. I might contact them. Prices are also what I would have expected. Again, my thanks!

[Aramusha]

What are the construction materials?
This will determine the residual value of the structure after depreciation.

If you are planning to rent out the property, you will not be able to get an owner occupier loan.
You would have to get a commercial loan, which will require a large down-payment (think in excess of 30%), and will have a high interest rate (think in excess of 3%, or maybe 4%).
You would be able to take Depreciation as an expense, and reduce your Income Tax at your Marginal Tax Rate. It depends again on the construction materials how much depreciation you can claim.
It will depend how much you can get for rent, whether this would be economically viable or not.

I think you will have to wait until you get your PR before the banks will talk to you about a Commercial Loan.
The main bank that is know to be active in the Commercial Market is Tsuruga Bank, but there may be others....

Also thanks to you for the insights!
Hypothetically speaking: What if I´d apply for a owner/occupier loan but would later rent it out? Maybe not immediately but after a couple of years? Do the banks usually check who is actually living in that house?

[Tkydon]

IHypothetically speaking: What if I´d apply for a owner/occupier loan but would later rent it out? Maybe not immediately but after a couple of years? Do the banks usually check who is actually living in that house?

You have to register where you are living at the Local Government Office, so you cannot hide that you moved, as someone else will register as living there.

You would have to inform the bank and ask for permission to rent the property out, and they may require you you to change from an Owner-Occupier Loan to a Commercial Terms Loan, or may call your loan, and you would have to finance with a lender that would provide a commercial loan. That will depend on the lender...

[Aramusha]

Thanks for the input.

How would the situation look if I use it as a 2nd home?

[Deep Blue]

You would have to inform the bank and ask for permission to rent the property out, and they may require you you to change from an Owner-Occupier Loan to a Commercial Terms Loan, or may call your loan, and you would have to finance with a lender that would provide a commercial loan.

I fully suspect there is a wide gap between what should be done, and what is commonly done and gotten away with. Same as everywhere I have lived.

[Tkydon]

I wrote a long diatribe on Rental Property somewhere...

https://www.retirejapan.com/forum/viewt ... 360#p29360

[Aramusha]

You would have to inform the bank and ask for permission to rent the property out, and they may require you you to change from an Owner-Occupier Loan to a Commercial Terms Loan, or may call your loan, and you would have to finance with a lender that would provide a commercial loan.

I fully suspect there is a wide gap between what should be done, and what is commonly done and gotten away with. Same as everywhere I have lived.

Thanks for the remark. I spoke to a couple people and, well, none of them kept it by the book...