Raze, Rebuild, Repeat: The Cost Of Building A House In Japan
Japan is known for its unique, scintillating, and shining skyscrapers in both Osaka and Tokyo. It is also known for knocking down its buildings and rebuilding them. The vibrant Asian country does not only have a thing for cars but also has a soft spot for buildings. Since Singaporeans enjoy visiting Japan, one may want to know, “how much really does it cost to build a house in Japan”? Well, this article answers all your questions.
How much really?
If you want to build a house in Japan, there are lots of decisions to make regarding land, the amount of money to set aside for the project, the duration, finding a good construction company, regulations, zoning and many more. If you don’t want to have constant headaches, you may want to do proper planning, before even commencing on budgeting.
The answer to this question can be somewhat ambiguous since the cost will vary based on the size of the house. If you are the typical kind that believes in the special features that you think are “must haves”? Then brace yourself for a costlier budget. On average, based on a recent survey, a construction can cost you about 31.2 million yen. The study reported that over 70% of the total participants in the survey said that the whole project cost between 31-35 million yen.
Find a suitable land
For most builders, finding and acquiring the right piece of land anywhere around a town is the most time-consuming and frustrating process of the project. If you nail down the right location, there are a plethora of other issues that need to be solved. Like how much it costs, how much is the deposit and many more.
The truth is that land in Japan is quite scarce predominantly if you’re looking for space around town. It also tends to be quite expensive to buy land in cities like Osaka and Tokyo. Outside the metropolitan locations, however, you may find that the construction costs are more of the total cost than the land price. Also, you may need to buy several pieces of land and then go through the process of combining them into one land.
You should be aware that the land needs to be approved by the local authorities for residential construction prior to building. The ground may require some leveling, bulldozing and tree chopping to create room for water, gas, and electricity. If you are lucky to find land that has been already prepared for construction, you are allowed to dive in an proceed with the building.
If your land has not been prepared for you, you are not very lucky as far as uniqueness and design are concerned. The development companies will do everything for you including designing which means that every other house around your neighborhood has a similar plan.
What about a lease?
You may want to save money for building and therefore look for an alternative. That alternative is leasing—entering into a long-term ground lease with the owner. In this case, you will be required to pay a recurring rental fee based on the amount agreed with the owner for a period of time coincided with the owner or based on how long you intend to stay. You will be in an excellent position to obtain a legal registration of your ownership. Leasing can be a unique way of saving money primarily if you do not wish to live there your entire life.
Who will manage the construction?
In Japan, there are numerous options available for you to help put up the home for you. Here are a few options.
- Hire an architect to design and manage the construction project
- Hire a contractor who will, in turn, hire a construction company to do the construction
- Speak to a good developer who knows things and people and one who can design the house and manage the construction project.
- Hire a franchise—a role between a general contractor and a developer. The franchise will arrange to buy the materials required for the construction and then hires a local contractor to carry on with the development.
Using a developer saves time as they have multiple design options, room layouts, materials and they have the skills needed to come up with a modern home. The more choices you have, the easier it is to get the work done fast and impressively. Hiring an architect is an excellent option for anyone looking to build a creative design. However, as you design, keep in mind that the more eccentric an individualistic your design is, the harder it may be to find someone to buy the house later in the future.
The time frames
It takes about three months to one year to complete construction in Japan, but this heavily depends on the minor and major details of the house that you need to be customized. Remember the construction company is never in a hurry. You can decide whether you would need bridge financing which s a higher rate than the permanent loan—meant to bridge the gap between making a down payment for the land and the time when the home construction is completed
It is also important to note that it is improbable for banks to give out loans before the house is finished as the bank will need to assess the value of the home prior to processing the loan. It is also to ensure that other parts of the credit are not misused or used in other areas like buying a motorbike or car. However, you can choose to get a loan and pay in installments, but the repayment period begins immediately after the loan is processed whether the construction has already started or not although you can still get the option of paying interest only without the principal.
If you are tight on the budget, it can be impractical to build your own house. No one can really provide a strict budget on how much the whole project will cost.