Hello Japanlife
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I’ve been looking around for a property in Japan, and this came to my mind. Thus: Could you potentially rent a room in your place to someone while paying the house loan?
Variation: Assuming no renting involved, could you just let someone live in your place with the same registered address? Like, they don’t pay rent but for example provide food?
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P/s: Based on a couple quick search with my very limited Japanese, apparently banks are not very fond of this approach, so there’s that.
2 comments
No if you buy with a standard house loan. Business loan with a far higher interest rate is different.
Letting someone live with you for free is different, but if they find out you’re charging rent to someone, be prepared to pay off the loan immediately at worst or be back charged a shit ton of interest
The rule for most banks is that you can buy a house with a low interest residential loan and then rent out a portion of it only if you continue to live in the building and the part you live in is 50% or more of the property. Some banks don’t like it when you do this, and will turn down your application if you say you want to try it. But if you rent out less than half the house after you buy the property and move in, that will not violate the terms of the loan.