Avoiding consumption tax increase too late for some
It may already be too late for some buyers looking to build their own home before the planned consumption tax increase next year. A last minute rush by buyers nationwide and a shortage in land and building materials means that some buyers will miss out on the current 5% tax rate.
A clause in construction contracts states that 'if the contract was signed at least 6 months prior to an increase in consumption tax, the tax rate applied at the time of hand-over will be the rate in effect at the time the contract was signed'. This means buyers must have their construction contracts signed before the end of September 2013 in order to lock-in the 5% consumption tax rate, otherwise they may be subject to the 8% rate which is scheduled to kick in on April 1, 2014.Read more
Land prices rise in majority of areas - MLIT LOOK Report
According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) the majority of survey locations for their quarterly Chika LOOK Report have recorded an increase in land prices.
Land price movements were measured in 150 locations throughout Japan, but primarily in the three major cities of Tokyo, Nagoya and Osaka. 80 of those locations, or 53% of the total, recorded an increase in land prices, while 51 saw no change in prices. The remaining 19 locations saw prices fall somewhere between 0 and 3%.Read more
Hokkaido facing difficult task of regulating transactions on forestry
Regulations requiring advance notification of the sale of land containing a water source came into effect on October 1st, but Hokkaido is already facing the difficult task of identifying and contacting land owners.
In Hokkaido, 53 areas were designated for water resource preservation. Correspondence has been sent to the 4,000 affected land owners, but only 60% could be contacted. The whereabouts of the remaining land owners remains unknown.Read more