Certification as a "Long-Life Quality Housing" home can expand mortgage tax deductions and provide tax benefits, but the application also involves cost and effort. This article explains the breakdown of application costs for Long-Life Quality Housing, the application process, and whether the benefits outweigh the costs.
What Is Long-Life Quality Housing? Certification Standards
Long-Life Quality Housing refers to housing that meets the standards in nine review categories, including earthquake resistance, energy efficiency, accessibility, and ease of maintenance, and has been certified by the relevant authority. The application must be submitted before construction begins, and certification is granted if the standards are met.
How Much Does It Cost to Apply for Long-Life Quality Housing?
Application fees vary depending on the competent administrative authority (local municipality). They also change depending on the scope of the review.
Application Fees for a Two-Story Detached House
- Review of long-term use structure, etc. only: 35,648 yen (the same amount when filed together with building confirmation)
- Review excluding residential environment considerations: 50,926 yen (45,833 yen when filed together with building confirmation)
- Full review: 61,111 yen (56,018 yen when filed together with building confirmation)
Detached House With Three Stories or One Basement Level
- Review of long-term use structure, etc. only: 50,926 yen
- Review excluding residential environment considerations: 66,204 yen
- Full review: 76,389 yen
How Much Does a Proxy Application Cost?
If you ask a house builder or contractor to submit the application on your behalf, an additional fee is added, and the total generally comes to around 200,000 to 300,000 yen. It is possible to apply on your own, but preparing the "Long-Life Quality Housing Construction Plan" requires specialist knowledge and is difficult. Because certification must be obtained before construction starts, commissioning the company responsible for the build is the usual practice.
What Are the Benefits of Building Long-Life Quality Housing? Considering Cost Effectiveness
Expanded Mortgage Tax Deduction
For Long-Life Quality Housing, the borrowing limit eligible for the mortgage tax deduction is set higher than for ordinary housing. However, the benefit of the deduction varies depending on the amount of income tax and resident tax you pay, so the advantage is greater for those with higher incomes and larger mortgages.
Use of Subsidy Programs
Under the "Regional Housing Greenification Program," wooden houses certified as Long-Life Quality Housing are eligible for subsidies of up to 1.1 million yen (subject to conditions such as construction by a small or medium-sized contractor selected by the Ministry of Land, Infrastructure, Transport and Tourism and the use of regional timber).
Obtaining certification for Long-Life Quality Housing requires an understanding of laws and systems as part of comprehensive real estate investment capabilities.
Recommended Reading
Frequently Asked Questions (FAQ)
Q. Can certification for Long-Life Quality Housing also be obtained for existing homes?
There is also a certification system for renovations that convert existing homes into Long-Life Quality Housing. Subsidy programs are also available under the "Project to Promote Renovation for Long-Life Quality Housing."
Q. Is there an obligation to carry out maintenance management after certification?
Once a home is certified as Long-Life Quality Housing, it becomes mandatory to keep records of regular inspections and maintenance. A maintenance plan must be prepared and implemented.
Q. How long does the application process for Long-Life Quality Housing take?
The period varies by municipality, but in general it takes about one to three months from application to certification. Because certification is required before construction begins, it is important to work backward from the construction schedule and start the procedures early.
