Yes, they can. Any foreign national can purchase real estate in Japan.

Yes, the majority of land is free hold title. All the land in Hirafu and Higashiyama is free hold title. In the Annupuri Village, most of the land is owned by the Chuo Bus Company and is lease title.

Niseko Real Estate appoints an English-speaking solicitor to represent you in Japan. The solicitor prepares contracts, checks that all mortgages have been cleared from the property, and completes the title deed registration on your behalf. While both parties are approving contract details, we request that deposit monies be transferred to the solicitor's trust account.

Upon receiving the Vendor's signature (or Japanese stamp) on the contracts, the solicitor on your command will release deposit monies to the Vendor. Contracts are then forwarded to you for signing and we request that you return the Vendor's copy.

Contracts are presented in both Japanese and English. The English version is a translation only.

At time of deposit, the solicitor's fee (approx. 105,000 yen) and any international telegraphic transfer bank fees (usually around 4,000 yen depending on the size of the transfer) are due. At this time NRE also requests 50% of it's agent's fee. (Standard Japanese agent's fee is 3% of sale price and 60,000 yen, plus 5% consumption tax on this figure.)

Prior to settlement date we require closing funds to be transferred to the solicitor's trust account. Signed Power of Attorney and Statutory Declaration documents are also required at this time. These documents will be provided to you by the solicitor after deposit is complete, and are needed to complete property title transfer and registration at time of settlement.

The solicitor makes settlement payment on the appointed day and the title deed is transferred into your name (registration takes five working days). The title deed will then be sent to you by registered courier.

At settlement, payment of a one-time Stamp Duty Tax and a one-time Real Estate Acquisition Tax is required. Again bank transfer fees, and in some circumstances, Council sewerage connection rights fees may also apply. At this time NRE will request the remaining 50% agent's fee payment.

In the case of a building where utility payments are required, NRE offers a General Management Service package to take care of all ongoing expenses. In the case of undeveloped land, NRE offers to act as your 'tax representative' and pay the yearly Fixed Assets Tax. Fees for this service is 10,500 yen per annum.

Fixed asset taxes are levied once a year based on the size and construction of your property or land. The Kutchan town council is responsible for calculating the amount of the tax. This tax is calculated based on a 365 day year. When purchasing a property, initial fixed asset tax will be calculated from the date of settlement until December 31st of the same year.

PLEASE NOTE: If you do not reside in Japan, you are required to have a 'tax manager' to pay the fixed asset tax. Niseko Real Estate can assist in appointing a 'tax manager' if so required.

With the general rise in worldwide timber and steel prices, Japanese building costs are also being affected. The following is an indication of construction costs to lock up.

• Timber Construction -- 600,000 yen p/tsubo (182,000 yen p/sq m)
• Steel Construction -- 700,000 yen p/tsubo (212,000 yen p/sq m)
• Concrete construction -- 800,000 yen p/tsubo (242,000 yen p/sq m)
• In addition to these costs, water connection, property registration and othe rfees apply.

According to the Tax Office, building depreciation is as follows:

Concrete construction - Pension, inn or hotel - 34 years - Rental cottage - 39 years - Commercial building - 31 years - Residence - 47 years Timber construction - Pension, inn, or hotel - 20 years - Rental cottage - 22 years - Commercial building - 17 years - Residence - 22 years

At government and private levels, foreign investment in the Niseko area has been favourably received. Kutchan major Ito-san and Niseko major Osaka-san are both actively involved with assisting and promoting foreign investment in the region. At a time when Japanese tourist numbers in Hokkaido are declining and the general economy is depressed, the local Hirafu community has received the sudden increase in Western guests with open arms.

In general, it is extremely difficult for foreigners to obtain financing through a Japanese bank. At a minimum, permanent residency status and collateral (in Japan) is needed for your application to be considered.

The solicitor represents you in Japan and does the following:

1) checks the contents of the Important Matters and Contract 2) is responsible for title registration in the buyer's name 3) confirms that any existing debts have been erased from the property 4) provides the title deed

The following building restrictions have been proposed for Hirafu village.

Area A (upper Hirafu village and along Route 343) Building footprint: 40% Coverage ratio: 250% Building height: 22m (flat roof 18m) Area B (middle and lower Hirafu village) Building footprint: 40% Coverage ratio: 150% Building height: 13m Building setback restrictions have also been proposed. These vary depending on the size of the land. Please enquire for full details.