Mountainside Palace Apartments


FAQ >> Answers
	1. Can a foreigner own property in Japan? << There are no exceptions on foreign ownership in Japan. In the case of MountainSide Palace, apartments are free hold strata title. 2. How do I secure financing? << Most overseas investors in the village secure a yen loan against assets in their home country, because a yen loan protects you against currency fluctuations. At the moment, it is very difficult for non-residents with no assests or declarable local income to secure loans from Japanese banks. 3. What is the purchase process? << An English speaking solicitor will act on your behalf and supervise the remittance and contracting process. Upon request, we will send you all contracts digitally for your review. Please indicate in writing (email is fine), when you have decided you would like to purchase a specific apartment. A deposit date will be set for two weeks from your confirmation, and we request that you remit the deposit to the solicitor’s holding account several days ahead of deposit date to allow for banking delays. The solicitor will only release deposit upon your request. During this time you will receive the paper contracts, already signed and stamped by the developer. On the appointed deposit date, you will contact the solicitor and give him your expressed consent to release the deposit. The remainder is due at the time of settlement. 4. How much time does the owner get? << There are no limitations on owner usage. If you enter into the letting agreement, you will have 2 weeks of free usage in both summer and winter. Outside of these two weeks, you will incur the 10% management fee. 5. What percentage of the gross income does the owner get? << 6. How do I receive revenue from my apartment investment? << All revenue will be directed to your designated local account. From here expenses such as cleaning costs, utilities, management and tour agent commissions will be deducted. From your net income, money transfers back home can arranged by request. 7. What kind of purchase tax and income tax will I pay? << At the time of purchase, you will incur a 5% consumption tax, which is included in the price, plus acquisition tax of about 1%. Income tax on your apartment, assuming no income elsewhere in Japan, is typically about 10%. However, because you are eligible for some minimum tax-free earnings, your income tax burden will actually be much less. 8. How much is capital gains in Japan? << Capital gains works on a sliding scale, increasingly slightly if your property experiences a major jump in value. For the first five years, capital gains for foreign owners is 30-37%. After 5 years, this reduces to 15-20%. 9. How much longer will growth continue in Niseko? << Niseko is still emerging as the first truly international winter resort in Asia. Even with its rapid growth in popularity in the past five years, development is struggling to keep up with demand. Looking at the increased tourist numbers, and the amount of available land and redevelopment sites in Hirafu village, Niseko is at least ten years away from being built out. This year saw both an increased commitment to long-term growth by developers, and a deepening of the investment pool. In 2006, there are well over 130 new apartments, townhouses, and houses being built. Projects by a number of local developers and new Japanese and international developers have already been announced for the coming years. Shifting from the early years of primarily Australian overseas investment, more and more buyers are coming from Hong Kong, Singapore, and Asia. This increased value-added investment, driven by a number of investment pools, has added a lot of stability and is a strong indication of continued growth.