"Now You Can Invest with Confidence! A Comprehensive Guide to the Process and Key Points of Real Estate Investment"

How to Start Real Estate Investment: Purchase Process and Key Points

Many people want to start real estate investment but don’t know where to begin. In this article, we will explain the basic process of purchasing real estate in an easy-to-understand manner.

Real Estate Purchase Process

1. Property Selection

2. Loan Application

3. Contract Signing

4. Settlement (Handover)

1. Property Selection

The first step is selecting a property. Use real estate portals such as Rakumachi or Kenbiya to list properties that meet your criteria.

✅ Key Points for Property Selection

• Clearly define your investment goals

• Analyze profitability, location, and risks

• Meet real estate agents in person to gather information (utilizing the Mere Exposure Effect)

• Understand market prices and compare options

• If it's difficult to decide on your own, consult a real estate professional

2. Loan Application

If you are using financing, you need to apply for a loan from a financial institution.

✅ Key Points for Loan Application

• Research which financial institutions to consult

• Don’t rely solely on online information—make actual inquiries

• Apply to multiple banks (expect some rejections)

• Consider banks like ORIX Bank, which may have more flexible lending policies

Loan conditions for income-generating properties have become stricter in recent years. Do not expect full or over-loans, and prepare some personal funds in advance.

3. Contract Signing

Once your loan is approved, the next step is signing the contract. If you are paying in cash, you will proceed to contract signing after coordinating with the seller.

✅ Key Points for Contract Signing

• Prepare a deposit (about 10% of the purchase price)

• Review the Explanation of Important Matters in advance

• Confirm if the current management company can be continued or changed

• Check for internet availability, security cameras, and parcel delivery boxes

• Visit the surrounding area at different times of the day to assess the environment

On the contract day:

• Review the Explanation of Important Matters and Sales Contract

• Sign, seal, and attach revenue stamps to the contract

• Pay the deposit

Once completed, the contract is finalized.

4. Settlement (Handover)

After signing the contract, the settlement date is scheduled, and you officially take ownership of the property.

✅ Settlement Process

• If using a loan, sign the Loan Agreement

• If the property has an existing mortgage, confirm the discharge process (usually takes 10 business days to 3 weeks)

• Work with a judicial scrivener to prepare necessary documents

• Transfer the remaining balance to the seller on settlement day

• The judicial scrivener confirms the transaction, finalizing the settlement

Don't forget these payments!

• Judicial scrivener’s fee (paid in cash or via bank transfer)

• Real estate agency commission (usually paid via bank transfer)

Conclusion

The basic process of real estate investment is as follows:

1. Property Selection

2. Loan Application

3. Contract Signing

4. Settlement (Handover)

There may be many uncertainties when making your first investment, but taking it step by step will help you proceed with confidence. Use this guide to navigate a smooth real estate purchase.