Long-term quality housing and low-carbon housing are homes certified by a local government as meeting certain performance standards. Here's an overview of the benefits of certification and the points worth checking.
- Long-term quality housing (chōki yūryō jūtaku) is housing certified by the relevant government authority as meeting standards for earthquake resistance, energy efficiency, ease of maintenance, and more.
- Low-carbon housing (teitanso jūtaku) is housing certified, under Japan's Act on Promotion of Low-Carbon Urban Development, as meeting energy-efficiency and other standards.
- Certification can come with tax benefits, such as a higher borrowing limit for the home loan tax credit — though the details change with each year's tax reforms, so check the latest information with the National Tax Agency or the Ministry of Land, Infrastructure, Transport and Tourism.
- The certification system is centered on new-build housing, and pre-owned homes that already hold certification are not common.
- Certified homes are required to keep inspection records based on a maintenance plan.
Conclusion: A Public Certification System for Housing That Meets Performance Standards
Long-term quality housing and low-carbon housing are both systems in which the government certifies housing as meeting certain performance standards. Certification can bring benefits such as tax breaks, but because the specific benefits and standards change with each tax reform, you'll need to check the latest information when considering a purchase.
How Long-Term Quality Housing Standards Work
Long-term quality housing is a certification granted by the relevant government authority to housing that meets multiple standards — earthquake resistance, energy efficiency, ease of maintenance and renewal, and consideration for the living environment, among others. A defining feature of certified housing is that it's built not only for its performance at construction, but with the assumption that it will be used for a long time to come.
How Low-Carbon Housing Standards Work
Low-carbon housing is a certification for housing that meets energy-efficiency and other standards under Japan's Act on Promotion of Low-Carbon Urban Development. Its legal basis and standards differ from long-term quality housing, but both share an emphasis on energy performance.
How to Think About Tax Benefits
Certified housing has historically come with benefits such as a higher borrowing limit for the home loan tax credit, and reductions in the registration and license tax and the real estate acquisition tax. However, because the content, requirements, and deadlines for these benefits are revised with every tax reform, you'll need to check the latest information from the National Tax Agency or the Ministry of Land, Infrastructure, Transport and Tourism to see what actually applies.
The Relationship With Flat 35
Flat 35 offers a program called Flat 35S, which gives a preferential interest rate to housing that meets certain standards for energy efficiency and earthquake resistance. Certification as long-term quality housing or low-carbon housing is often treated as grounds for meeting these preferential-rate standards, so if you're considering Flat 35, it's worth checking whether the property holds certification. We cover the basics of Flat 35 in a separate article, Flat 35 vs. Private Mortgages — The Differences and How to Choose.
Points to Watch When Considering a Pre-Owned Home
Certification as long-term quality housing or low-carbon housing is centered on a system for new-build housing, and pre-owned homes that already hold certification aren't common. If you're considering a pre-owned home that has carried over its long-term quality housing certification, it's important to check that the inspection records based on the maintenance plan have been properly kept and passed on. Rather than judging based on a certification label alone, it's reassuring to look closely at the inspection history and the plan documents themselves.
Frequently Asked Questions
What's the difference between long-term quality housing and low-carbon housing?
They're based on different laws and standards, but both are systems in which the government certifies housing that meets certain performance standards. Both share an emphasis on energy efficiency.
What benefits come with certification?
Benefits have included a higher borrowing limit for the home loan tax credit and reduced taxes, but the details change with tax reforms, so check the latest information with the National Tax Agency or the Ministry of Land, Infrastructure, Transport and Tourism.
Can a pre-owned home be certified too?
The system does technically include a framework for existing homes, but in practice, certification is centered on new-build acquisition, and there aren't many pre-owned homes that already hold certification.
Summary
Long-term quality housing and low-carbon housing are public certification systems for housing that meets performance standards. While certification can bring benefits such as tax breaks, those benefits change from year to year, so check the latest program information as you consider a purchase.