News & Info

What are the “Expenses” of purchasing real estate in Japan? ② -Non-tax expenses-

  • Japanese real estate expertise
What are the “Expenses” of purchasing real estate in Japan? ②  -Non-tax expenses-

We focused on “Taxes” from the Expenses of holding a Japanese real estate in Vol.1. However, taxes are not the only expense.

Shall we take a look at the Non-tax expenses this time.

Reserve fund for repairs(Sinking fund) and Management fund
Fee of financial institution
Non-life insurance
Brokerage fee


<Reserve fund for repairs and Management fund>

When you purchase an apartment house in Japan, you need to pay Reserve for repairs and Management fee as monthly expenses. In particular, when purchasing new apartment house, most of these funds such as reserve funds for repairs and management funds should be paid in a lump sum.

In some cases, building management company/seller estimate a small amount of the reserve fund for repairs or does not even have a fund in the first place in order to minimize the burden at the time of purchase. Subsequently, owners are required to increase the amount of the reserve for repairs suddenly or to pay lump-sum separately due to shortage of the repair money. CLEARTH LIFE calculates and presents the required estimate amount based on a long-term repair plan so that there are no concerns as mentioned above.

<Fee of financial institution>

There are a lot of people having mortgages from banks, etc. among the buyers. In most cases, the handling charge to financial institution is required to be paid when processing the mortgage.
Since the handling charge amount depends on the financial institution and the amount of the mortgage, it is advisable to confirm it in advance.

<Non-life insurance>

Once you purchase a unit, you can also purchase non-life insurances with fire and earthquake.
Buying non-life insurances is optional, however it’s one of the mandatory mortgage conditions if you are having a mortgage from financial institution most of the time.

<Brokerage fee>

In the event that a real estate company intermediates the purchase of a second-hand property, the buyer needs to pay a brokerage fee to the said company.

Purchasing of property price exceeding JPY 4,000,000→ Property price x 3% + JPY 60,000 + Consumption tax
(This calculation formula is set under the Real Estate Brokerage Act.)
e.g. Purchasing price at JPY 30,000,000, then the Brokerage fee will be JPY 1,036,800.
* If a real estate company sells a newly built property as a seller, this brokerage fee will not be charged.

As described above, there are the various “Expenses” other than the property price when purchasing real estate in Japan. It is very troublesome for the owners to pay separately for all these expenses, however we accept the request of owners and assist with the settlement process.
Therefore, it is possible for the overseas owners to settle the payment with the expenses at once.
When you consider purchasing real estate in Japan, please come to CLEARTH LIFE. We are more than happy to assist you.


Would you like to know more about CLEARTH LIFE projects?

Currently on Sale


Feel free to ask us any Japanese real estate related questions.

Enquiry Form

Currently on Sale


    Tokyo’s Timeless Heritage

    Completion: March.2024 / Price: 34.4 Million JPY ~


    "Yokohama Sakuragucho" Timeless Radiance

    Completion: June.2007 / Price: 27.4 Million JPY ~


    "Kawasaki", Tradition Meets Tech Innovation

    Completion: December.2023 / Price: 36.4 Million JPY ~



Please contact us for any enquiries.


This form uses SSL (encoded transmission protocol) to ensure the safety of your personal information.