How We Got Here The first question a client usually asks is what we do. The more useful question is what we have done — and whether the decisions we made on those projects are relevant to what they are trying to do now. Smith Realty Japan began with a land acquisition decision in Kawanishi in the late 1990s. The site was stigmatised — adjacent to an active leather factory, avoided by local buyers, priced accordingly. The surrounding area was already the subject of a municipal remediation programme. The gap between what the land was priced at and what it would become once that programme ran its course was legible to anyone willing to work through the numbers. We bought, built, and held. That portfolio continues to perform across multiple buildings at consistent occupancy. It is still the primary evidence base for residential rental investment advice we give today.

Firstly, when it comes to building credit with Japanese banks for real estate investment, it’s important to understand that most Japanese loans are full recourse. Non-recourse loans are rare, which means borrowers in Japan often shoulder a different kind of responsibility. Having secured multiple investment loans here, I can share insights from someone who holds what I like to call some “umph” with Japanese banks.

When deciding whether to renovate or rebuild, many property owners in Japan face a challenging decision. While building new is appealing, renovating old properties in Japan offers unique advantages, especially when navigating zoning laws and regulations. Here are two key reasons why renovation might be the better option for your property.