I’m currently considering buying a used mansion or single home in the greater Tokyo area. I’ve read a lot here and in other places about the pros and cons of buying vs renting in Japan in general, and a lot of the pros focus on the income tax mortgage deduction for home owners. I’m a US taxpayer and Japanese PR and my salary is being paid in USD. Based on recent USD-JPY currency conversions, there may be some years where I would be eligible for the deduction, but I’m likely to be put over the income limit to receive the mortgage deduction this year, and if the exchange rates keep up like they have been, for most years for the term of the mortgage.
If I’m likely not going to receive the mortgage deduction each year for the life of the mortgage (which is already less attractive than it was in previous years), I’m wondering if others here think it’s worth it to buy vs rent. I’m considering this now because it seems the current mortgage deduction is scheduled to go away after 2025 (but we’ll see if it just gets updated instead) and I’m thinking about trying to purchase property before that happens, just in case.
Even without the mortgage deduction, I like the idea of buying because of the security of knowing I have a place to live regardless of what happens with my job. I have enough savings to be able to continue to pay the mortgage monthly/pay it off completely if needed someday, so getting stuck with a mortgage I can’t pay isn’t the main concern.
I’d appreciate any advice from others with any experience on buying vs renting here, especially if you think it’s worth buying without benefiting from the mortgage deduction. Thank you.
by teqqtite