I'm in a situation where I'm thinking of buying detached house either in Tokyo or Kanagawa area
My current house rent is 210,000 yen.
I'm thinking of buying a detached home from around 70M Yen (Total loan of about 80M Yen)
If I consider around 0.5% floating interest rate the monthly mortgage is around 210,000 Yen.
Which seems fine, but I'm still very confused about other charges. Like Property tax, is property tax alone going to end up costing me over 50K a month? I think I should also consider saving some for maintenance. Are there other monthly charges that I'm not considering?
Most people are saying that when the bought a house their monthly payment went down, but when I do the math it looks like my monthly costs will go up.
(My visa/salary status I can get a standard loan for this amount without any issues)
by TheGuitarist08
2 comments
The common knowledge in Japan says that you should save about 10k per month for future repairs.
Minimum 100k per year.
After ten years, a 1M yen repair is definitely possible. In 20 years a 2M repair as well.
Property tax is hard to tell, but I live in Chiba and paid about half what you’re paying for my house and I get charged 100k yen per year.
1. If you make under 20M you can get an income tax deduction for the next 10 years
2. If your house has all the certs and is new you’ll get an aqcuisition tax deduction and property tax (its actually called fixed asset tax) deduction. That tax is based on the assessed value, not the sale value. So while you might buy a house at 70 where it’s like land is 50 and house is 20, the city might assess it at 35 and 15 (usually about 70% of the sale value). Those certs will get you discounts on the fixed asset tax (about 3% per year). I think it cuts the land value in half and calculates it and for the house gives a subtracted deduction.