I am a 30 yr old male. Working as a full time employee in Tokyo. I have a PR too. I currently live with my GF since past 3 years. We plan to get married next year in Japan. (We both are non Japanese and both belong to different countries).
With my career I see myself settling down in Japan or at least not going anywhere for next 20 years.
I am considering to buy an apartment in Yokohama. Will it be wise decision? suggestions are welcome.
Thanks in advance
25 comments
I mean, if you’re not planning on moving, especially for that long, yes, buying is always better, since at least you will own something, as opposed to throwing away money on a rental for 20 years, that may be more expensive than a loan payment would be
Twenty years?! Of course you should buy a house. Can’t go wrong with owning property. And maybe it’ll be paid off by the time you want to move next. Good luck!
I would say yes if you plan on living here long term. My wife (japanese) and I own our house and that works out well for us. Based on the low property tax even if we go live somewhere else, we probably won’t sell our place in Japan.
The only input I can give you is: if you have PR, you don’t need to have a down payment. Buuut if you are married with PR, but your partner doesn’t have PR, they require a down payment. At least, this is what we were told at a 説明会.
If your partner already has PR, this won’t affect you.
We were in a very similar situation as you. My wife is non Japanese and not from my country. We were certain buying was the better choice especially considering mortgage was literally dirty cheap. Our mortgage payment is about half of what we would have paid in rent for a similar apartment. We plan to be here indefinitely. Honestly for us, we can’t think of much reasons why we shouldn’t buy a home here if we plan to be here.
Yes
Yes, buying seems like a pretty good option
You may have a look at [this](https://www.reddit.com/r/japanlife/comments/15g32lw/comment/jupz0nv/?context=3) post, though it is more general and not specific to Yokohama.
Maybe
Pros:
* The mortgage might be cheaper than your rent.
* You’ll get some money back if you sell it.
* You can rent it out.
* You are free of the rental system, renewal money etc. as a renter.
* Tax break initially.
Cons:
* It’s probably not a good investment with the reduction in population. At least, not good compared to other countries. Your savings are locked into it.
* If you want to move you have to find a buyer.
* You might not get all the money back. (But a lot more than than if you pay rent.)
* You are now responsible for everything. You have to get things fixed. No more landlord to call.
* If the house or apartment is destroyed by earthquake things get complicated and you are responsible.
* You are now officially part of the neighbourhood. You might have to join the apartment management committee.
Buy buy buy! If you’re here 20 years it’s a no brainer
20 years? Absolutely.
Me and my partner are looking into buying within the next five years so I’d say yes, if Japan is long term. Just go into it understanding that real estate doesn’t appreciate as it does back home.
I think Yokohama real estate is valuable and will always hold its value as prime real estate. Even if you left Japan you should be fine with that as an investment property if you don’t purchase a complete dump
Yes, if you don’t plan to move in the next 10 years & don’t treat it as an investment it should be OK. ##not a financial advisor though, just my 2 yen.
What are the interest rates if you’re looking to buy and then rent later?
I am 3 years out from completing my mortgage on a house in Yokohama. It’s a pain, but I’m glad I did it. And, in 3 years, my COL will decrease significantly as I don’t have to pay to live in my house.
Get a fixed rate mortgage if you’re going to stay here.
If you plan on staying 10+ years there is not doubt: buy. Not because of the financial impact but because of the stability and comfort such a home can bring, you can do whatever, decorate it how you like, refurb as you wish, etc. I have 2 properties (not in Japan) and in my experience its a different feeling staying in a rented place vs staying in your own home.
I bought and have no regrets.
A lot depends on your personal situation, but if you plan to be here long term, go for it.
At your age and about to get married the main thing to think about is whether you are going to (or at least might have) kids someday. If so, the one down side to buying in Japan is that it is difficult to trade up from one house to another as your family grows. So when choosing a place be sure it is not just one that suits your current needs, but what you might need 10 or 20 years in the future.
Better to buy a house.
Just wondering how long did it take you to get PR?
For 20 years I can’t even imagine considering rent as an option. If you have the means then yes buy lol
Having plans to not leave Japan isn’t enough, you have to be sure you won’t want or need to leave Yokohama for another part of the country either. But if that’s true, then it’s certainly a no-brainer to buy.
I’m planning to build as soon as I get PR. I can have things just the way I like it, can make whatever changes I want, whenever I want, don’t have to worry about stupid rental fees anymore… And the loan would be cheaper than my current rent. Only downside is for people who want property as an investment.
Japanese buildings depreciate rather swiftly. Take a good hard look at the construction standard. A concrete “mansion” is likely to hold value better than a flimsy wood frame building. Also look at insulation, windows etc.
As someone married with a house, I’d say its better to stick to renting. Yes, a low interest mortgage might be a little lower than what you’d pay in rent, but when you own your property you’ll have a lot more taxes to pay plus any repairs or renovations are all out of your pocket. Plus you have way more flexibility if you rent, for example if you moved to a place and had awful neighbors that you hated or you moved to a rough area, you can easily move. And you say you plan to stay here for 20 years, but that is a really long time and there’s absolutely no way you will know what will happen. What if there was an emergency that meant you or your wife had to leave the country? What about if you got a divorce or you simply got bored of Japan or if there was a major disaster? Hopefully none of that will happen, but simply put you have no way of knowing what your situation will be like in 20 years time. There are many benefits to owning your own place, but it’s way more stressful, it can be more expensive and you’ll be stuck with a 20-30 year mortgage.