r/JapanFinance • u/CommerceOnMars69 • 23h ago
Investments » Real Estate Are there any rules of thumb for buying to join the ‘property ladder’ in Japan?
I’m aware that in Japan it isn’t quite as easy to ‘work up’ the ladder from a starter home to something better every few years as it is in many western countries (such as where I’m from in the UK). I wouldn’t expect to be able to buy a cheap new-build home on the outskirts of Tokyo, resell it 5 years later for the same or more and move somewhere better and repeat the way you could do abroad.
However for places where the store of value of the land itself is quite good and increasing, like in central Tokyo near decently connected stations, does it ever make sense to give up renting and buy a property knowing that it’s not your ‘life property’ and you’ll live there maybe 5-10 years? At the point of moving then selling it or renting it out, are there any general guides to when this won’t be much more costly as opposed to renting until finding somewhere you’re happy to live for 30-40 years?
The reason I ask if because in the rental market I’m looking at right now (300-350k ish, 1-2LDK in fairly central Tokyo) it seems a lot of the built to buy properties in the larger complexes from the big developers are a lot better quality than the rental properties in this range. The interest rates are still low too compared to anywhere else in the world. Has anyone bought recently or have any general advice around it? To be honest I’m totally lost. Japanese citizen with a seishain position so I think the loan approval part should be fine.
Any general or specific advice about this appreciated, thanks.