Buying Two Osaka Units With Zero Japanese Footprint
A non-resident investor living entirely outside Japan, with no Japanese bank account and no local income, secured financing for two investment units — proving offshore income alone can be enough with Yen Loans.
OVERVIEW
This borrower is a non-Japanese national living entirely outside Japan, with no Japanese income, no Japanese bank account, and no prior financial footprint in the country.
They were looking to purchase two investment units in a new-build Osaka development and generate rental income.
However, domestic Japanese lenders often require locally-filed income documentation and typically a Japanese bank relationship, neither of which this borrower could provide, closing off the conventional financing route before a conversation could even start.
SOLUTION
Yen Loans built the underwriting entirely around what the investor did have: verifiable global income and the strength of the asset itself.
A guaranteed rental agreement generating approximately ¥4.5M in annual rent helped support the income case, and a pre-approved property manager was arranged so the "no Japanese bank account" gap never became a blocker.
We offered the following financing for the borrower to support their financing request:
| LOAN STRUCTURE | DETAILS |
|---|---|
| Purchase Price | ≈¥75M (Two units combined) |
| Independent Valuation | ≈¥52M |
| Loan Amount | ¥31M |
| LTV | 60% against independent valuation |
| Rate | ≈4.86% p.a. all-in (TIBOR + 3.50% + 0.50% Interest-Only Premium) |
| Loan Type | Interest-Only (5 yrs) + P&I (30 yrs) |
| Loan Term | 35 years total |
| Key Condition | Pre-approved property manager in lieu of bank account |
OUTCOME
Six business days after applying, this investor had a conditional approval in hand.
Today the units generate a steady approx. 6.6% equity yield, entirely self-managed from abroad.
| METRIC | RESULT |
|---|---|
| Monthly Repayment (I/O Period) | ≈¥125,000 |
| Guaranteed Annual Rent | ≈¥4.5M |
| Net Annual Income1 | ≈¥3M |
| Net Proceeds at Settlement2 | ≈¥29.4M (After all fees deducted) |
| Equity Yield3 | ≈6.6% |
| Approval Time* | 6 business days |
¹ Net of financing costs during the 5-year interest-only period.
² Loan proceeds net of arrangement and legal fees.
³ Reflects current performance during the interest-only period referenced above. Net annual income and equity yield will change once principal & interest repayments begin in Year 6, as cash flow shifts toward paying down the loan principal.
* Measured from application received to conditional approval issued. Excludes subsequent conditions clearance and final loan settlement.
Disclaimer:
This case study is provided for illustrative purposes only and reflects the specific circumstances, underwriting, and market conditions applicable to one individual borrower at the time the loan was issued. Details have been anonymized to protect client privacy. Loan terms, interest rates (including TIBOR-linked pricing), LTV ratios, approval timelines, and rental yields shown are historical and specific to this case. They do not represent a guarantee, quote, or offer of credit, and actual terms available to any applicant will depend on individual financial circumstances, property valuation, underwriting criteria, and prevailing market conditions at the time of application. Equity yield figures are not guaranteed and may fluctuate due to occupancy, currency exchange rates, and market conditions. This content does not constitute financial, investment, tax, or legal advice. All lending is subject to Yen Loans' credit approval, underwriting criteria, and applicable terms and conditions.
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