Aug 22
0

Conflicts of interests ～exclusively for foreign expats

By | Japan Culture, Real Estate

One of a real estate agent services is a property management.

(A) A property management is that a real estate agent  receives a commission from a building owner and manage the owner’s apartment or house. The real estate agent maintains the building and must attract tenant customers. That is, a property management is a service for owners.

(B) On the other hand a real estate agent receives a request from foreign expats and search for the most suitable apartment or house for the foreign expats. In this case the real estate agent must stand on the foreign expats’ side. That is, searching for an apartment or house is a service for foreign expats.

These two services (A)(B) are mutually exclusive.

“Conflict of interests” is a popular legal term in the United States.
However Japanese do not understand clearly the legal concept of this word “Conflict of interests”

When a creditor and a debtor contend at law, a lawyer for a creditor work for the creditor and a lawyer for a debtor work for the debtor. There are two different lawyers in charge for different interests. If a lawyer for a creditor is the same person as a lawyer for a debtor, there is no doubt that it is illegal because of “Conflict of interests”.

Therefore foreign expats should not trust a real estate agent who receives a commission from owners.

 

 

Aug 20
0

The Period of a Contract～Tenants can cancel anytime in Japan

By | Real Estate

The period is set in a lease contract.
Most foreigners believe that the lease contract cannot be cancelled during the period which is sent by the term of a contract. That is, most foreigners think they must pay the monthly rent until the expiry of their contract.

In general Japanese lease contact for residences set the lease term as two years. However in fact tenants can cancel a lease contract anytime even during the execution of a contract. Tenants must notify the cancellation to the owner one month in advance. Then tenants can terminate their payment of the monthly rent anytime.

Nevertheless a real estate agent in Kobe who is dealing with foreign expats explain to its foreign customers that Japanese lease contract cannot be cancelled during the period of the lease contract. Since foreign expats are hard to find out Japanese laws, foreign customers believe that they must keep their lease contract until the end of the lease.

It is crooked means that the real estate agent makes foreign tenants not to leave their property, but there still are foul play by Japanese real estate agent for many years.

Any Japanese lawyer or realtor easily understands this legal sense. So please be careful with an underhanded real estate agent and ask someone with experience in real estate business.

Aug 19
0

Corporate Contract or Individual Contract

By | Real Estate

Written by Masahiro Fukai , US CPA/ Realtor

Corporate lease contract can reduce tax of both a company and its employees. If a company wants to retain good staff, the company should consider a cooperate lease contract as company housing for staffs.

In case of a cooperate lease contract the following taxes can be reduced.

(For employees)
(1) Withholding tax (Gensenchoshuzei)
Withholding tax is a national tax which is deducted from monthly salary. Since a company pays the monthly rent to the owner, his salary would be decreased. So the withholding tax is reduced.

(2) Local income tax (Juminzei)
Local income tax is also an item which is deducted from monthly salary. In the same way as the above withholding tax, local income tax is also reduced.

(3) Contribution to social insurance (Shakaihokenryou)
The main contributions to social insurance in Japan are ①Health insurance tax (Kenko Hokenryou), ②Employee pension premium（Koseinenkin hokenryou).

(For companies)
(4) Corporate Tax
Since companies pay monthly rent for employees, the expense of income statement will increase. So the corporate tax decreases.

On the other hand in case a company provides housing allowance to employees, the total amount of salary increases. Therefore the above (1) (2) (3) increase.

Corporate lease contract demands nothing. The only one thing is the firm’s accounting workload. However it is not so hard work. Whether or not a company can deal with a corporate lease contract and reduce taxes is essentially a matter of practice.

By adopting a corporate lease contract the firms can enhance the satisfaction level of their employees and so they would always lure high quality people.

Jul 29
0

Ashiya Royal Homes #501 （323.76㎡）

By | Property, Real Estate

Ashiya Royal Homes is very special apartment as the Japanese real estate property.

Ashiya Royal Homes is designed exclusively for foreign executive expats from the early planning stage. There are two full bathrooms and one separate shower room. So the total number of baths is three. Toilets are also three which can guarantee the guest’s privacy.

The 103 square meters living room is enough space to hold formal receptions in this apartment.

The reason why I recommend Ashiya Royala Homes is the apartment caretaker. I think the most important point for rental apartments is the management services. Especially in case of foreigners there are many difficult life because of languages. If the apartment has kind management service, the property would enhance the satisfaction levels.

Mr. Suzuki, the manager of Ashiya Royal Homes, is a talented person rich in experience for building management. He speaks English well, however he study hard German, Chinese, etc when foreign customers are living in his apartment. Mr. Suzuki has a deep desire to be of service.

Ashiya Royal Homes was established on the land of Mr. Nakauchi, the founder of Japan’s top supermarket in 1991 exclusively for foreigners to reside in Japan.

Ashiya Royal Homes is 5 minutes walk from JR Ashiya station. It is only 13 minutes from JR Ashiya station to Osaka station.

“Ashiya” is the top upper-class residential area in Japan. So people’s standard of living is very high. You could understand this meaning if you do in Ashiya. Also there are many very good restaurants and cafe in this area.

“Ashiya” is close to natural mountain of Rokko and on the other hand very good to access of Osaka City for business, too.

In recent years there are worldwide repeated natural disaster. Japan is a country subject to earthquake and Tsunami. The coastal artificial island like Rokko Island is very vulnerable to disaster.

 

Floor plan, the natural environment, living people’s level, convenience to business, safety for disaster. All factors considered, Ashiya Royal Homes is recommended apartment.

Name: Ashiya Royal Homes

Room : 501

Address: 20-10, Ohara-cho, Ashiya City

Floor plan: 5 bedrooms with 2 full baths, 1 shower, and 3 toilets.

Monthly rent: 990,000JPY

Deposit (refundable): 1,980,000 JPY

Deposit(non-refundable): 1,980,000JPY

Area: 333.76 ㎡

Construction: 1991

Parking space : available 22,000JPY