Is it cost effective to buy or rent a house in Japan?

With the diversification of lifestyles, many young people no longer regard buying a house as a goal for themselves, and they feel that renting a house is also a good way of life. Therefore, it is a good choice to buy a house in Japan and rent it.

So it's better to rent and buy a house, Dongning Real Estate will analyze it for you, and from an economic point of view, assume that someone has 10,000 yuan in cash on hand, and can have 3,606 yuan of spare money at his disposal every month in the future.

Buying a house: Purchase a house with a total price of 600,000 yuan, a down payment of 180,000 yuan (30% of the total purchase price), a loan of 420,000 yuan (70% of the total purchase price), and a total interest of 10,000 yuan. Assuming a loan for 15 years, the mortgage interest rate is 85% off, the monthly payment is 3,606 yuan, and the tax is 10,000 yuan (deed tax and maintenance**).

A total of 10,000 yuan (equivalent to a post-15 home buyer spent 10,000 yuan to own a house).

Renting: interest income of 10,000 yuan, 15 years of deposit (interest calculated by compound interest), rent expenses of 10,000, 15 years of total rent expenditure (assuming monthly rent of 1706 yuan), interest income of 10,000 yuan, monthly savings of 1,900 yuan, 15 years of cumulative total income, 15 years of cash 760,000, 10,000 + 10,000, for a good comparison, the total funds are still 10,000.

However, from economic considerations, as long as the property purchased for 600,000 yuan appreciates by more than 760,000 yuan after 15 years, then it is cost-effective to buy a house. Considering factors such as supply and demand, inflation, and currency over-issuance, it is a high probability event that the appreciation of real estate reaches expectations. Whether it is in terms of economic factors or quality of life, buying a house is a better choice.

Is it cost-effective to rent or buy a house?

Which is more cost-effective to rent or buy a house in Japan? Listen to the real estate person calculate an account, is there any investment value?

If you are planning to study abroad or study abroad, we recommend "renting is better than buying". Due to the cramped size of Tokyo, most office workers rent houses that are small but well-equipped. Generally, you can buy a suite like this with a starting price of 300,000 yuan.

For most Chinese investors, the threshold for investing in real estate in Tokyo is not high. In addition, it is better to pay other people's rent in vain, it is better to become a homeowner yourself, and you can continue to receive stable rent income after returning home in the future, and earn the difference in housing prices.

Japan is a country that prohibits immigration, and it is forbidden for people other than Japanese nationality to buy a house in Japan, so if you want to buy a house there, you can do it in the following ways, and there is no other way. First medium. You must be married and live together for more than three years before you can buy a house in Japan.

Second. If you become a Japanese citizen, but you are not Chinese, the Japanese will only treat you as a Japanese citizen, and will not treat you as a Japanese person, unless you have worked there for ten years or more. Third.

Find a Japanese person as a guarantor, but the name of the house is in the name of the Japanese, not your name. There is no other way to buy a house in Japan. I'm anxious about this.

I'm going to Japan in two years, and the places I'm looking at are Kanagawa and Ehime.

OK.

To buy a house in Japan, you only need to prepare a domestic notarial deed, which can be entrusted.

Japanese land is freehold.

Japanese properties are fully furnished, and the exclusive area does not include balcony corridors.

Japanese real estate is on a steady upward trend.

Increasing overseas asset allocation can avoid the risk of depreciation of a single currency.

Many people choose to invest in real estate in Japan.

1.The yen has historically been a safe-haven currency.

2.Real estate in Japan is a freehold property, and buying a house in Japan is buying land, and land is the most valuable.

3.The population of the Tokyo area has increased for 22 consecutive years, and as long as the population continues to increase, the rental demand will not decrease, which also ensures the stability of rents and housing prices in the Tokyo area, and the rent-to-sales ratio is predictable.

4.After the Japanese economic bubble, housing prices have not yet reached their high point. The 2020 Tokyo Olympics will drive the construction of the surrounding area, and the room for housing price growth is predictable.

5.Japan's tourism industry is booming, and the demand for hotels has long outstripped supply, with an average annual occupancy rate of 80%. Japanese guesthouses will become a big hit.

Generally, I will not regret it, because buying a house in Japan has certain advantages, such as safety and stability, suitable for retirement and other reasons:

1. Rate of return

In Japan, for example, the apparent rate of return is between 5% and 12% in Tokyo and Osaka (about 2% in China). Recently, many houses that allow experience homestays can theoretically report more than 15% because the room rate is charged on a daily basis.

2. Safe and stable

For investors with a lot of money, in addition to real estate, **,** and so on are also options that can be considered, but have you ever thought about how much energy it takes to invest**,** and worry all the time, if ** will cause a lot of losses, and even ** will be overwhelming. Most of the shareholders complained of misery, which seriously affected their lifestyles and property returns.

3. The demand is strong

Japan's urbanization process is accelerating, and many college students want to settle down in several core cities after graduation, and need real estate to meet rigid needs such as marriage.

4. Suitable for the elderly

For many middle-aged investors, Japanese real estate investment undoubtedly has such a plus. Japan's medical care, life, and even the natural environment have always been at the forefront of the world, and Japan has always been the country with the longest human life expectancy in the world.

5. Preferential purchase price

The calculation method of housing in Japan is very different from that of China, so I will not repeat it here, but you can click here to view the previous article (how much is a flat property in Japan: this calculation is much cheaper than in China). In short, a house marked as 100 square meters in Japan is equivalent to about 140 square meters in China, so the advantages are very obvious.

And there is no rough house in Japan, all the houses are finely decorated, with a full set of configurations, which also saves a lot of trouble and energy.

1.Private land + freehold.

Japan has a private ownership system of land, so you can keep the freehold property rights, and if you build a household, you can buy the freehold property rights of the house + land. How powerful is private ownership? If the state invests in building roads or something, and designs a route that passes through your house, if you don't agree, the state has no right to enforce it, and can only make way for "private individuals".

2.Most of the houses in Japan are reinforced concrete + wooden structures based on light wall materials, which are safe and earthquake-resistant + energy-saving, and Japanese real estate must meet the seismic resistance standards when built (below).

3.As for the rate of return that you are most concerned about, as long as you follow some basic rules of home selection, a return rate greater than 5% is basically not a problem. 60% of people in Japan rent a house, there is a great demand for renting, and there is no big problem with maintaining the value of houses in some major cities, if you insist on comparing with Alipay, the yield of 5% is basically a bottom, but should you think about the inflation of the yuan, the yen is currently relatively strong in the foreign exchange market, and it can be regarded as a safe haven for global assets;

4.Let's briefly sort out the other expenses.

Part 1: When you buy a house.

Buying a house brokerage fee.

Immovable property acquisition tax.

Property rights landed on water, stamp duty.

Fees for judicial scriveners.

The insurance premiums add up to about 8% of the total price of the property.

Part 2: When you own a property.

Gudu Tax: Metropolitan Plan Water and Fixed Asset Tax.

The profits obtained from the investment are subject to income tax.

Management fees, repair fees.

If it is handed over to an intermediary to operate and manage on behalf of you, you need to pay a service fee.

Part 3: When you sell your property.

Stamp duty transfer income tax (tax is payable on the difference in the value of the income from the total price at the time of purchase, and the tax rate is 40% for five years).

The real estate agency's agency fee.

For most Chinese buyers who want to buy a house in Japan, Japan is not a very familiar country, and it is natural to be well prepared in advance to complete such an extremely important thing as buying a house and investing here. So, what are the real estate policies in Japan? What are the differences and similarities between Japanese and Chinese real estate?

Land and real estate policy in Japan

The biggest difference between Japanese real estate and Chinese real estate is that Japanese land is privately owned, that is, once you purchase Japanese land and real estate, you will enjoy permanent ownership of land and buildings. In China, all that is purchased is the right to use. There is no private ownership of land in Chinese law, while in Japan the law recognizes the rights of landowners.

Therefore, in China, the validity period of land use rights is less than 70 years for general residential apartments and less than 40 years for commercial use.

In addition, with regard to the use of buildings, the construction of corresponding buildings can only be carried out with the corresponding permission of the state** in China, and the purpose is single. However, Japan's regulations on this content are relatively relaxed, and basically it is not mandatory to use it for a single purpose. In other words, land that is not currently being built can be converted into office buildings or other commercial facilities in the future.

In Japan, land and buildings are valued separately. Buildings have a large depreciation rate in Japan, which means that the longer the building is built, the lower the retention value of the building. Therefore, a large part of the value of real estate in Japan is in the land.

In recent years, the ** of Japanese housing prices mainly refers to the ** of Japanese land.

When buying a house in Japan, there is no shared area, and there is no mention of the construction area, only the usable area of the house, and the balcony area is not included in the sales area. And compared with China, the concept of xx school district and xx business district has less impact on housing prices when buying a house in Japan. The location factor that affects housing prices in Japan is more the distance of the house from the subway station.

We have repeatedly said that when buying a house in Tokyo and Osaka in Japan, your budget can be as low as hundreds of thousands or even tens of thousands of yuan. Looking at the world, this is one of the few developed countries with sound systems and legal guarantees.

In fact, whether it is worth investing or not depends mainly on your expectations for investing in real estate, if you want to speculate on real estate to make a profit, Japan is the least necessary country to choose, but if you want to obtain long-term and stable income through renting, then it is necessary to invest in Japanese real estate, which is also worth considering. 【Worth investing in real estate in Japan】

Broadly speaking, there are several reasons why Japanese real estate is worth investing in:

1. There is a strong demand for housing in Japan.

In terms of population, the Tokyo metropolitan area has the largest population in the world, and excluding the epidemic period, population growth has been in place in Tokyo for 50 years, with an annual inflow of nearly 100,000 people, and the number of people in Beijing and Shanghai is not as large as it. As a result, the population will be able to pull up demand, and the demand for housing will certainly be able to stabilize.

Second, the return on investment of real estate in Japan is high.

Tokyo's GDP is the second largest in the world, second only to New York. When demand is high, housing prices are not easy to fall. As of 2020, Tokyo's second-hand housing prices have risen for seven consecutive years, and new housing prices have risen for eight consecutive years, and real estate is improving.

Many people still want to take the bursting of the Japanese real estate bubble, which is really wrong, after the real estate bubble was actively punctured by Japan's **, the housing prices have been in a state of steady rise, and many of the more high-quality properties have risen by 20% to 30% in the last three years, not to mention the 5%-8% rental income (even in the first-tier cities in China, only 2%).

3. Holding yen assets to hedge against inflation.

The yen is unanimously considered a safe-haven asset around the world, and in recent years, the Sino-US war in 2018 and the U.S. stock market crash in 2019, the yen is the best. As long as the world experiences a crisis, the yen will generally show an upward trend against the trend.

When you buy a property in Tokyo or Osaka, it keeps earning you yen. The return on these investment properties is about 4%-6%. A few days ago, the news of the thunderstorm of ICBC's wealth management products swept the whole network, and now it is possible to make considerable profits by using this money to invest in Tokyo real estate.

Fourth, Japan's mortgage interest rate is low.

If you want to borrow from the bank to buy a house in Japan, it is very easy to have a relatively stable job, the loan interest rate is basically 1-2%, and some people buy a house with 0 down payment, compared to the domestic one, the mortgage interest rate is almost 6%, does it make you feel tight? How can we Chinese residents enjoy low-interest loans in Japan, click on the link to inquire about how foreigners can take out a loan to buy a house in Japan [free consultation Japan real estate investment].

Since it is an investment, there will be risks, and since you invest in Japanese real estate, what risks will you face? There are rules on the length of the article, and friends in need suggest that you take a look at this article about the risks faced by real estate in Japan. [5 things you need to know about investing in Japanese real estate].