This article is written by a Japanese local.
With the widespread adoption of remote work and changing lifestyles, “dual-base living”—owning a second house in a nature-rich area while working in a major city like Tokyo or Osaka—is gaining significant traction among foreign professionals in Japan.
Areas such as “Karuizawa (Nagano Prefecture),” famous as an international summer resort, “Hakuba (Nagano Prefecture),” known for world-class powder snow, and “Hakone (Kanagawa Prefecture),” renowned for its hot springs, are extremely attractive. However, purchasing and maintaining a property in rural Japan presents “unique hurdles” entirely different from buying an urban apartment.
This article provides a logical, defensive guide on the financial barriers to purchasing a second house in Japan, the physical risks unique to remote locations, and practical steps to prevent troubles.
1. Popular Second House Areas for Foreigners and Their Characteristics
When searching for a second house in Japan, target areas are generally divided into two main purposes:
- Karuizawa (Nagano) / Hakone (Kanagawa): The overwhelming appeal lies in their accessibility—just 1 to 1.5 hours from Tokyo by Shinkansen or express train. Cool in the summer with relatively light snow in winter, they are perfect bases for “workations” to escape the city on weekends. With new international schools opening, educational relocation demand is also surging.
- Hakuba (Nagano) / Niseko (Hokkaido): Immensely popular among winter sports enthusiasts. Because skiers flock here from all over the world during winter, there is strong potential to offset maintenance costs by outsourcing the property to a foreign-affiliated management company for short-term rentals (like Minpaku) when you are not using it.
2. The Fatal Pitfall: The Wall of “Second House Mortgages”
The first major barrier when foreigners purchase a second house is “financing.”
Standard “residential mortgages” provided by Japanese banks offer extremely low interest rates around 0.5%. However, an absolute condition for these loans is that “the borrower registers their residential address there and lives there daily.” You cannot use this low-interest mortgage for a second house used only on weekends.
Instead, you must apply for a “Second House Loan (Villa Loan).” Because these are high-risk for banks, the screening is exceptionally strict. Logically, for a foreigner to secure this loan, they typically must hold “Permanent Residency” and prove they have “paid off the mortgage on their primary home or have significant surplus income.” Without Permanent Residency, purchasing the property outright in “Cash” is the most certain and realistic route.
3. Physical Risks and Defensive Maintenance (Running Costs)
Unlike urban apartments, there is a concrete physical fact regarding second houses in nature: “If left unattended, they deteriorate rapidly.”
Risk 1: Humidity, Mold, and Burst Pipes from Freezing
Houses built in forests experience very high humidity. If left closed for months, walls and furniture will be covered in mold. Furthermore, in cold regions (like Karuizawa and Hakuba), if you leave the house in winter without performing “Mizu-nuki” (the process of draining all water from the pipes), the water inside will freeze and burst the pipes, resulting in millions of yen in repair costs.
Risk 2: Heavy Snow and Fallen Leaves
In heavy snowfall areas like Hakuba or Niseko, snow piles up several meters high in winter. If you do not clear the snow from the roof, the house risks collapsing under the weight. In autumn, massive amounts of fallen leaves clog the gutters, causing severe roof leaks.
[Defense] Outsourcing to a Local Management Company is Mandatory
It is impossible to manage these physical risks on your own. When buying a second house, you must sign a contract with a local “Villa Management Company.” For a monthly fee of around 10,000 to 30,000 JPY, they will perform regular indoor ventilation, handle the water draining/re-supplying process, arrange snow clearing, and cut the grass. It is essential to calculate these running costs in advance, not just the property purchase price.
4. Q&A: Common Inquiries
Q. Do I need to move my registered residence (Juminhyo) to the second house?
A. No, you do not. You can keep your Juminhyo at your primary base of living (e.g., your city apartment). However, be aware that the municipality where your second house is located may charge you a “Per Capita Inhabitant Tax” (a few thousand yen annually) separate from your property tax.
Q. Can I rent out the property on Airbnb to earn income when I’m not using it?
A. It depends strictly on local laws. In some prestigious villa areas like Karuizawa, local ordinances strictly prohibit “Minpaku” (short-term rentals under 180 days) to preserve the scenery and public safety. Before purchasing, always confirm with your local agent whether “legal short-term rental permits (such as Hotel Business Act licenses) can be obtained for that specific property.”
5. Conclusion
Owning a second house in Japan is a fantastic self-investment to escape daily stress and fully enjoy Japan’s beautiful four seasons.
However, you must logically understand that purchase funds generally require a cash settlement, and maintenance costs in a natural environment (management company fees and repair costs) will be an ongoing expense. We strongly recommend a front-loading approach: rent a “monthly furnished apartment” or a vacation home in your desired area for a month as a trial. Experience the reality of the climate and local infrastructure firsthand before proceeding with a formal purchase.