Shockingly it's not! It's actually incredibly easy for foreigners to own property in Japan, and it's actually so established that we're buying the property in my name as a US citizen rather than in my wife's name as a Japanese citizen, for a few reasons that I won't get into here, but suffice it to say that there are very few downsides to being a foreigner that I've seen thus far.

Two things I will call out as actual disadvantages is that 1. you won't be able to get a mortgage like a normal Japanese person, which is in fact a real shame because on top of every other ludicrously wild fact about how Japan is a mythical utopia where everything makes no sense, Japanese mortgage rates are literally as low as 1% lol. So being able to get a mortgage would be a real benefit, but hey - at $60k for an awesome house, I'm not complaining :)

2. Some insurers seem to not support foreign citizens - Sony in particular told Dot that they wouldn't provide earthquake/fire/flood insurance to me as a foreigner. I'm still looking for the right insurance provider, and I'm not concerned that this is an impossible thing to resolve, since a ton of foreigners do own homes here with no issues, but it is at least some more friction than a Japanese citizen would have.

One other disadvantage you didn't mention is it's difficult to get a visa that makes buying a home there worth it, for the average Joe.

Most regular people can only visit Japan for 3 months out of the year. Even if you buy a home you can't get a visa just for that.

Maybe in your case the visa thing isn't an issue because of your wife but that won't be the case for most people.

Why buy in your name?