Building a custom home (注文住宅) sounds like the dream —
You get to design everything to fit your lifestyle, from layout and materials to finishes and flow.
But before you jump in, it’s crucial to understand the real costs, timeline, and hidden challenges that come with it.
Let’s break it down
Why Choose a Custom Home?
Complete personalization — You’re not adjusting to someone else’s vision. Every detail, from wall placement to kitchen design, is based on your taste and lifestyle.
Modern safety & energy standards — New builds comply with the latest building code, giving you peace of mind for earthquake resistance and energy efficiency.
Long-term satisfaction — It’s a powerful feeling to live in a home that reflects your values and priorities.
But… It’s Not as Simple as It Looks
1. The Display Homes Are Often Premium Models
When you walk through a beautiful showroom or exhibition model, keep in mind:
Those homes are built to impress, not to represent the average budget.
They often include high-end finishes, extra features, and styling options not included in the base package.
So if you’re quoted ¥25–30 million to build, remember:
That’s likely for a standard spec build, not what you saw at the expo.
2. Cash on Hand & Financial Planning Are Critical
Many people assume the mortgage will cover everything, but that’s rarely true.
Here’s why:
Most quotes don’t include afterworks: landscaping, parking space, mailbox, exterior fence, lighting, carport, etc.
Optional upgrades (like insulation, better kitchen units, flooring) can add millions depending on your choices.
You may need cash before your full mortgage is approved, especially when signing with the builder or paying design fees.
Without financial preparation, you may face delays or have to compromise.
3. The Loan Process is More Complicated Than Buying an Existing Home
When buying a built property, you usually apply for a single mortgage.
For a custom home, you need:
1. Land Purchase Contract
2. Construction Contract
Which means:
You often require a bridge loan (つなぎ融資) until the full mortgage is executed after construction.
Banks will check detailed drawings, plans, and builder info before final approval.
Loan screening is stricter and more documentation-heavy.
You need someone who understands how to navigate the process step-by-step.
4. Utility Setup = Hidden & Unexpected Costs
If the land you’re buying doesn’t already have water, electricity, or gas,
you’ll be responsible for connecting those lifelines yourself.
Example:
• If there’s no water pipe on your property or the front road, and the nearest line is 20 meters away:
You’ll likely need to pay around ¥300,000–¥400,000, depending on contractor, material, and road type.
This includes:
• Pipe purchase
• Labor and digging
• Permission and permit fees (especially if it crosses a public road)
Similarly, if there’s no gas or electricity setup, those will cost extra as well.
These costs are rarely shown in early simulations or sales materials, so it’s important to check utility access before committing to the land.
5. Material & Design Choices Affect Total Price
Every upgrade has a price:
• Flooring material
• Window type (double-glazed, energy-saving)
• Roof quality
• Bathroom and kitchen grade
• Exterior walls, siding, insulation, etc.
Even choices like wallpaper or built-in storage can impact cost by hundreds of thousands of yen.
Your budget needs buffer space for changes or upgrades as the plan evolves.
Rough Budget Example:
Let’s say:
• 50 tsubo (about 165 sqm)
• Base construction cost = ¥600,000/tsubo
600,000 × 50 = ¥30,000,000
This does NOT include:
Land purchase cost
Utility connection expenses
Optional features or design upgrades
Exterior and landscaping work
Loan and administrative fees
Registration tax, stamp tax, permit fees, insurance, furniture
Realistically, most custom home buyers in Japan should plan for:
Total costs: ¥45 million and up, depending on location and preferences.
Who is a Custom Home Best For?
Families with specific lifestyle needs or creative vision
Buyers who already own land or have secured it
People with stable finances and cash reserves
Clients who can handle a long, step-by-step process with flexibility
What’s the Timeline Like?
Typical schedule:
1. Consultation
2. Land search & purchase
3. Design and floor plan discussions
4. Engineering & building plan finalization
5. Permit approval
6. Groundbreaking
7. Construction
8. Handover
Expect 6–8 months minimum, but often longer — especially if plans change, revisions are needed, or external delays occur.
My Role as an Independent Real Estate Agent:
I support my clients from concept to completion, including:
Helping you find the right land
Checking land condition (e.g. zoning, setback, utility access)
Planning realistic budgets with a clear breakdown
Introducing reputable builders and confirming contract details
Explaining mortgage types and managing tsunagi-yūshi (bridge loan)
Overseeing the process and making sure you’re never in the dark
Final Thought:
A custom home can be your dream come true —
But only if it’s planned realistically, with clear expectations and full transparency.
Don’t just focus on the design.
Understand the land, budget, process, and responsibilities that come with it.
Thinking of building your home in Japan?
Let’s talk first. I’ll walk you through the process in plain English (or Japanese), help avoid costly mistakes, and make sure you’re ready for every step.
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