Buying an Apartment
If your plan is to buy an apartment in central Tokyo, your chances are far better if you search for both new and pre-owned apartments. Chances that a newly built apartment block is being sold in areas you like are relatively low.
Where you should buy would really depend on what the purpose of your purchase is. If your final aim is for investment then buying in central Tokyo would make most sense, as you can expect good rental demand and resell value. If it is for settling down and growing your family, perhaps moving farther away from the city will get you the extra space you need.
Even if you move farther out, it is highly recommended that you remain in proximity to the central wards or in areas with quick train access to Tokyo, as there is a greater chance of your property retaining value than other areas. Of course, if there are properties in the outskirts or in adjacent prefectures with additional value, such as being near popular beaches, big parks, or shopping facilities, or having a great view or attached outer space, etc., then that can be money well spent too.
As much as it is important to find a comfortable apartment, you should not neglect your due diligence to find out any issues that may burden you after you take possession. Look at the history of maintenance work done in the building and see if there is not a long list of work lined up. What are the latest topics discussed within the homeowners’ association (管理組合 Kanri-kumi-ai) general meetings? Does it have a long-term maintenance plan (長期修繕計画Choki-shuzen-keikaku) and is the reserve fund accumulating as the schedule projects? Does it have any negative events that happened in the past such as accidents or crimes? Are there any apartment fee delinquents amongst the homeowners? And so on.
Buying apartments that have a high monthly cost can also be financially burdensome. That means you may want to avoid apartment buildings that have few apartment units, unless your financial situation allows it.
From the management perspective, I would recommend an apartment that has an outsourced management company which is hands-on with the management operation of the apartment rather than a self-managed apartment, especially when you are a foreigner. The first reason is, if you do not speak Japanese, your voice will not be heard and you will just allow the management operation to be run by other people who may not know what they are doing. The second reason is, the apartment may not be conforming to a long-term maintenance plan which means the building may be low in its reserve fund for conducting essential maintenance repairs in the future.
Age of the building should be taken into consideration when purchasing an apartment in Japan as there is a high level of seismic activity across the country. Buildings that were built based on city-approved building plans before June 1st. 1981 are not up-to-date with current earthquake codes (耐震基準 Taishin-kijun) and they may be vulnerable to large earthquakes. However, some pre-1981 buildings may just be as strong as the ones built according to the current codes. So check to see if there has been any seismic diagnosis conducted in the past.
With recent global climate changes, Japan, like many other countries, has suffered from severe floods due to unprecedented rainfalls. It is extremely important to make sure you are aware of the flood risks in the area. Not only are floods seen typically in areas near rivers and oceans, but they may also be seen in low lying areas in inland locations, where wastewater treatment capacity cannot keep up with short-time heavy rainfalls which have become more common recently.
Buying an apartment may not be a once-in-a-lifetime event. You may need to upsize, downsize, relocate, or capitalize. Therefore, when buying real estate, you may need to look at resell value or future rentability. Not only does capital appreciation give you more freed-up cash, but for certain people it can also mean being able to offset the remaining loan.
You cannot always predict whether your real estate will retain or increase its value, which can be impacted by economic factors. But there are indicators which should be taken into consideration when purchasing your home that can make a difference.