Real Stories: Is Buying a Second Home in Tokyo a Profitable Investment?

Japan has firmly established itself as a top choice for international real estate investment and lifestyle purchases. Driven by favorable currency conditions and an unmatched quality of life, sophisticated global buyers are securing their second base in Tokyo. These two success stories, guided by IREA’s Managing Director, Tsuyoshi Hikichi, illustrate how an investment in a Japanese second home can be seamlessly converted into a profitable monthly rental asset, maximizing returns while securing a luxurious, stress-free home base for personal visits.

Case Study 1: How Can I Balance a Japanese Second Home Investment with a Luxury Lifestyle?

The American Pilot, an international airline captain from the US, successfully secured a sophisticated second home in Gotanda that perfectly balances personal enjoyment with a lucrative rental strategy. For him, Japan was more than just a favorite destination; it was a place he frequently visited during his many days off, and the depreciating yen offered a significant affordability advantage.

What Challenges Did the American Pilot Face When Buying in Japan?

The Captain faced two main challenges related to logistics and budget, compounded by his high standards.

• Logistical Conflict: His busy, unpredictable schedule made in-person property hunting difficult.
• Budgetary Conflict: His initial preference was for high-end areas such as Ebisu, which initially conflicted with his budget.
• Property Type Interest: He was initially interested in older properties for a self-managed renovation.

How Did IREA Resolve the Budget and Location Hurdles?

IREA agent Tsuyoshi Hikichi leveraged his extensive local knowledge and efficient curation to pivot the Captain’s search, leading to an immediate emotional purchase.

During the Captain’s short visit, Tsuyoshi efficiently curated a tour of five properties, including a fully renovated 2-bedroom apartment in Gotanda. This property immediately changed the client’s mind, as it offered stunning views of the cherry blossoms and unparalleled convenience, being located directly on the Meguro River and just a short walk from the Yamanote Line.

What is the Stress-Free “Hands-Off” Ownership Model for Non-Residents?

The Captain plans to use the apartment during his favorite seasons, Spring and Autumn, and utilize it as a lucrative short-term monthly rental during the other times of the year. Crucially, IREA and its affiliated property management company, Axios Management, solved the non-resident ownership problem to ensure a truly stress-free, “set it and forget it” property investment.

Their comprehensive, bilingual support includes managing the entire administrative burden:

• Closing Funds Transfer: Managing the complex process of transferring closing funds without the need for a Japanese bank account.
• Ongoing Management: Handling all ongoing administrative burdens, including paying local utility bills, taxes and condo association fees.

Case Study 2: Can I Complete a High-Value Japanese Property Purchase Remotely?

Yes, the second client, a Singaporean investor, executed the entire transaction remotely from Singapore. Her strategy was clear and investment-driven: purchase a second home for occasional family use that was perfectly positioned to generate passive income through a monthly rental strategy when she was away.

What Key Criteria Guarantees Success for a Remote Rental Operation?

For a successful, high-demand rental operation, the property’s location was paramount. The key criteria included:

• Superior Accessibility: Excellent access to both Narita and Haneda airports.
• Commercial Hub Proximity: Quick access to major commercial hubs such as Ginza and Shibuya.
• High Rental Demand: Proximity to charming, historical areas (such as Ueno and Asakusa) to guarantee high demand from monthly renters.

How Does IREA Facilitate a Seamless Remote Purchase Process?

Tsuyoshi’s process was designed for long-distance ownership, addressing all initial client concerns through technology and a hands-on approach.

• Online Consultation: The process began with a detailed online consultation to demystify property taxes and post-purchase management through Axios Management.
• Virtual Viewing: For the property search, Tsuyoshi personally visited promising properties and conducted live WhatsApp video calls to give the client a detailed, virtual viewing of the rooms, exteriors, and facilities.

The chosen apartment, a bright, southeast-facing room located between Nishi-Nippori and Mikawashima stations, met all these criteria, offering excellent access to Narita Airport and proximity to cultural hubs.

What Full-Service Setup Is Available for Rental-Ready Properties?

The client purchased furniture and appliances from Singapore, and IREA’s team provided an unmatched level of comprehensive, hands-on service. This full-service setup included:

• Delivery Coordination: Coordinating the receiving and setting up of all deliveries.
• Operational Readiness: Transforming the empty unit into a stylish, sophisticated and instantly rental-ready home.

This complete service allowed the client to purchase and operationalize a new home without ever having to set foot in Japan during the closing process.

Conclusion: Why Choose an End-to-End Solution for Japanese Real Estate?

These success stories clearly demonstrate IREA’s unique value proposition: delivering not just a property, but a complete, end-to-end solution for international buyers. By integrating brokerage (IREA) with expert property management (Axios Management), we turn the complexity of the Japanese real estate market into a secure and profitable opportunity for clients worldwide.

FAQ

Is a Japanese bank account required to close on a property?

No, it is not required. IREA and its partners managed the complex process of transferring closing funds without the need for the American Captain to open a Japanese bank account.

Can I use my second home as a short-term monthly rental?

Yes. The American Captain plans to use his apartment in Gotanda as a lucrative short-term monthly rental when he is not using it himself, typically during the peak tourist seasons.

Who handles local bills, taxes and fees for non-resident owners?

For owners using the hands-off model, property management company Axios Management, handles all ongoing administrative burdens including paying local utility bills, taxes and condo association fees.Ready to secure your profitable second base in Tokyo? Contact IREA today for a personalized consultation on our end-to-end investment and property management solution.