Hello Japan Financiers
I have been shopping around for a house in the Tokyo area, and was originally planning to max out the bank loan (around 70 – 80 mil) as my budget.
But with the yen being so weak, I am considering putting an extra $150 – 200k (¥20 – 30 mil) down on top and get a larger place closer to downtown / better access area. It would be an improved lifestyle (spare room, bigger house, better access) but I am wondering how this works if / when the yen balances out again.
I know the general rule of thumb was to max out the bank loan and keep your $ making $ in brokerage accounts but the exchange rate is crazy now and the extra space is very tempting…
If in 5 or 10 years the yen gets stronger and I decide to sell or rent out does that mean that I just made a bunch of $ by putting $ in to start? I am having a bit of trouble conceptualizing this and it’s such a big purchase and would use a good amount of my savings…. So I would appreciate any thoughts or experiences you guys could share on this subject. Thanks very much.
by rasdouchin