I often receive various questions and inquiries from overseas buyers who wish to purchase real estate in Japan. In most cases, they have already started searching for properties when they contact me, and some even ask for my opinion about specific listings. However, at that stage, I am unable to respond to such requests.

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Of course, one reason is that they have not yet formally engaged my services. But more importantly, my professional property reviews are based on understanding the buyer’s purpose, conducting necessary research, and evaluating the property against that purpose — including its location and conditions. This process cannot be done without first performing basic consultation and investigation.

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From my experience, while many overseas buyers are very enthusiastic about studying real-estate transactions and deepening their understanding, it is extremely rare for them to conduct comprehensive research that includes zoning and other regulations related to their intended use, local municipal rules, procedures or applications that may be required in the future, and practical aspects such as management methods and cost items.

Whether such comprehensive research has been conducted — and the degree of understanding that results from it — will directly influence the property search itself. As buyers gain a deeper understanding, it is not uncommon for them to change the locations or types of properties they choose, or even to revise their conditions and budgets.

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For overseas buyers, taking the time and effort to conduct this preliminary research is especially important, as it helps bridge gaps in common sense, understanding, and perception — yet it is also a very challenging task due to the language barrier. For example, zoning regulations are among the most confusing topics. They are not governed by a single national rule; each municipality has its own regulations. If your goal involves generating income or business use, you must contact the relevant local authorities for each property to obtain accurate information. In most cases, these inquiries cannot be handled entirely by email — face-to-face communication is often required — and except for a few municipalities, responses are generally provided in Japanese only.

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It is not uncommon for buyers who purchased a property for short-term rental purposes, assuming that confirming the basic zoning category under the City Planning Act would be enough, to later encounter obstacles when trying to obtain approval or to find out after the purchase that the municipality prohibits or heavily restricts such use.

If you do not live in Japan, you must also think carefully about management and operation. It is not unusual for people to realize later that the profit does not match the effort required, that maintenance costs outweigh returns, or that they cannot find tenants and end up withdrawing altogether.

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A lack of awareness about repair costs, legal issues, or asset-related risks is another factor that easily leads to trouble or regret later. In particular, inexpensive properties have recently become popular through videos and online content, but these realistic issues tend to be overlooked. There are many cases where buyers think they got a great deal on a low-priced house, only to discover that the repair costs were far higher than expected or that the renovation never seems to end. Some cannot even recover their investment because they are unable to find buyers when they try to sell.

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As I also explain in a related article on my website, there is always a reason why a property is cheap. The lower the price, the more likely it is to come with “invisible” damage risks, legal risks, and asset risks as hidden extras. Only a small number of so-called “akiya hunters” truly understand the fact that cheap vacant houses are high-risk and low-return. Skipping realistic research and relying only on exceptional success stories or optimistic information found online is dangerous.

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Whether you are planning a vacation home, a permanent residence, or a property for business through a legal entity, or if you want to rent it out, target a specific tenant segment, or simply enjoy DIY as a hobby — your purpose will determine the conditions required for the property, the appropriate budget, and even the possible locations and types of buildings. The things you need to research in advance, and the to-do list after the purchase, will also differ completely depending on that purpose.

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Many people begin with property searching itself. However, it is actually wiser to spend sufficient time and effort beforehand — to clarify your purpose, conduct the necessary research, and gather essential information — before starting the search. Although it may seem like a longer route, it will ultimately reduce your risks and help you move forward with your plan more efficiently.