Hi all, getting ready to pull the trigger on a house and just want to get your opinions on whether my logic is sound.
Background:
42-year-old US citizen. Permanent resident with a full-time job at a public university.
Wife and 2 kids, both in preschool.
I’d like to purchase an used home (asking price 18m yen, I will make an offer starting at 25% less than that as I imagine the person selling wants to get rid of it quickly as it is already an akiya bank listing).
The maker is [https://selcohome.jp/](https://selcohome.jp/) 26 years old but in good condition. Previous owner was a legit DIY’er and even built an adjacent tiny house by himself, and took very good care of the residence.
Specs: 4LDK, with a 470sq. m piece of land. South facing, 2 car ports. 6 years ago it had the bath and plumbing upgraded, siding re-painted, and went all electric with an eco-cute water heater.
What I like about the property: Less than a 10 minute drive to my workplace, plenty of space for a garden. BBQs on the weekend. Though I haven’t requested a house inspection yet, the house looks to be in excellent condition and the build looks much better than many newer pre-built homes in the area.
What I don’t like about the property: right near a cemetery (which I presume is the reason this guy can’t sell his house) and far out in the countryside. Bamboo behind the house. Could become a problem maintaining down the road.
Reasons I’m thinking about buying this:
1) I could afford a more expensive home, but my thought is that if I happen to change jobs (maybe 15% chance of it happening), I could pay off the loan in one go and rent it out to recoup some of the loss on the house. I am not looking to flip it for profit, just cover my losses a little bit if my life goes in a different direction.
2) I’d prefer to stay as liquid as possible so that I could put my savings into index funds rather than real estate. I don’t want to be held up by a large mortgage.
3) A mortgage on an 18m yen house over 35 years would come out to monthly payments that are less than I’d pay to rent a place.
4) I’ll have more money to spend on my kids’ activities and well-being.
Sorry this is getting long, but is there anything in this description that I should reconsider? The other thing I am considering is buying a new or newish pre-built house for about 30m yen and bank on it being able to command a higher price if I decide to rent or sell, but having less money per month to invest in the stock market. Thanks in advance!
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by Denamakesmoves