Fucked by Japanese landlords-your story wanted

[matsuki]

Or a mountain retreat. Something to do. Just to hang out, sleep and watch tv while munching pop corn

I wish all I had to do there was hang out and sleep with a TV and snacks

[legion]

* 4) You have permanent residence status, at least. I'm not sure that is a prerequisite for purchasing property here, but it just makes sense. You don't want to be in a position where sponsor/visa issues can interfere with your ability to live in your own home.

When I bought my house I was on a very recent dependent of a japanese national visa. PR is a better option because you can get a loan from Mizuho who give the best rates. So after a while I switched to PR and we re-negotiated the loan, switching from Mitsubishi UFJ to Mizuho, the wife paid off a chunk of the principal with some savings plan that had come to fruition and our monthly repayments went way down. I now pay half what I used to pay to rent houses in Shinjuku then Meguro when I was single. I can't live in an apartment, I need space left and right, above and below. I think there is a huge psychological benefit to this, and it gets better when you own the bit below.,

So I concur with the hammer, it's not the best option for everyone, but if you want to settle down and start a family it makes a big difference. Living in the big smoke is great when you are single, but with kids I much prefer living out in the sticks & commuting. No high rises and three lane roads where I am.

Property tax is a bind, at least it tells me the value of this land is creeping up in that it creeps up too. Basically the money you get back in the tax break for the first ten years goes on your property tax, but hey, it keeps some bean counters employed. It should go down as the house itself becomes a liability.

Any landlord is going to include property tax, costs for repairs, loan payments, and a profit in the rent. If they own the place they are not going to rent it much cheaper, they are just going to buy themselves a nicer car.

But fundamentally this is not really about money, it's about owning a little bit of space and having the right to take decisions about it. Obsessing over money never makes people happy.

[wagyl]

At long last it starts to make sense. If you are saying "owning a house in, say, Mitaka is cheaper than renting a freestanding house in Meguro" you won't hear much argument from me. That wasn't they way it was first expressed, however. It was expressed to be all about the money, all about how paying rent is more expensive because landlords are living high on the hog.

I also agree that the landlord is passing on the property tax and maintenance costs as part of the rent. Often, when comparing loan cost against rent, the fact that those costs are bundled in the rent is so often overlooked, and it is important to take them into account when making a decision.

[Russell]

Basically the money you get back in the tax break for the first ten years goes on your property tax,...

What is that tax break you talk about? Is it only applicable to newly built houses?

[wagyl]

There does not appear to be a restriction on the property subject to the loan: new build or other acquisition, or even an extension. http://suumo.jp/journal/2015/02/26/78579/ love the stock photo of a US 1040 form!
https://www.nta.go.jp/taxanswer/shotoku/1213.htm
Constantly fiddling with the limits almost every year so not something that seems to be reliable.

[Russell]

There does not appear to be a restriction on the property subject to the loan: new build or other acquisition, or even an extension. http://suumo.jp/journal/2015/02/26/78579/
https://www.nta.go.jp/taxanswer/shotoku/1213.htm
Constantly fiddling with the limits almost every year so not something that seems to be reliable.

OK, so this only applies if you have a loan on the house.

[wagyl]

There does not appear to be a restriction on the property subject to the loan: new build or other acquisition, or even an extension. http://suumo.jp/journal/2015/02/26/78579/
https://www.nta.go.jp/taxanswer/shotoku/1213.htm
Constantly fiddling with the limits almost every year so not something that seems to be reliable.

OK, so this only applies if you have a loan on the house.

Yep, and a reduction on your income tax, so if you pay little tax then there is little to reduce.

[Grumpy Gramps]

Any landlord is going to include property tax, costs for repairs, loan payments, and a profit in the rent.

Would you expect otherwise? It is a business like any other. If you go to a bakery, your morning baguette's price will include bits for the rent for the shop, the price of the raw materials, electricity and the salary of the sales girl. And all taxes. And a bit of profit for a new Mercedes Benz for the baker's wife now and then to keep her happy and the blow jobs coming.

I know that most tenants stronlgly believe that landlording should be a charity with the tenant as beneficiary, all paid out of the goodness of the landlord's heart, but alas, it just works like the bakery and every other business.

[wagyl]

What is more, like the bakery, it is a competitive market. The "little bit extra" which is called profit is also to cover for the times that the property is vacant and those associated costs do not go away. If that little bit extra is too large, then periods of vacancy are longer, as potential tenants find similar properties elsewhere with lesser rents. Get too greedy, and vacancies are longer and average takings end up being less.

[Grumpy Gramps]

And, shouganai, the building is getting older every year, while tenants prefer newbuilds, so occupancy rates tend to go slightly south over time. I think (= not sure) the banks guestimate somewhere between 60 and 80% average, if you ask for a loan.

For a one-family-home, occupancy rate would either be 0% or 100% at any given time, so the "volatilty" is a lot higher than for a say 20 condo-mansion. If a londlord runs this as a business/investment vehicle, he needs, therefore, comparably more rent for the family home than for one of the condos.

OTOH, legion's "need legroom" point is a very valid one. We are living in something like a 2LDK plus the space of a former coffee shop and I still feel like a tiger in a cage. Can totally relate to it.

[Taka-Okami]

* 4) You have permanent residence status, at least. I'm not sure that is a prerequisite for purchasing property here, but it just makes sense. You don't want to be in a position where sponsor/visa issues can interfere with your ability to live in your own home.

When I bought my house I was on a very recent dependent of a japanese national visa. PR is a better option because you can get a loan from Mizuho who give the best rates. So after a while I switched to PR and we re-negotiated the loan, switching from Mitsubishi UFJ to Mizuho, the wife paid off a chunk of the principal with some savings plan that had come to fruition and our monthly repayments went way down. I now pay half what I used to pay to rent houses in Shinjuku then Meguro when I was single. I can't live in an apartment, I need space left and right, above and below. I think there is a huge psychological benefit to this, and it gets better when you own the bit below.,

So I concur with the hammer, it's not the best option for everyone, but if you want to settle down and start a family it makes a big difference. Living in the big smoke is great when you are single, but with kids I much prefer living out in the sticks & commuting. No high rises and three lane roads where I am.

Property tax is a bind, at least it tells me the value of this land is creeping up in that it creeps up too. Basically the money you get back in the tax break for the first ten years goes on your property tax, but hey, it keeps some bean counters employed. It should go down as the house itself becomes a liability.

Any landlord is going to include property tax, costs for repairs, loan payments, and a profit in the rent. If they own the place they are not going to rent it much cheaper, they are just going to buy themselves a nicer car.

But fundamentally this is not really about money, it's about owning a little bit of space and having the right to take decisions about it. Obsessing over money never makes people happy.

Well said buddy.

[Coligny]

And, shouganai, the building is getting older every year, while tenants prefer newbuilds, so occupancy rates tend to go slightly south over time. I think (= not sure) the banks guestimate somewhere between 60 and 80% average, if you ask for a loan.

For a one-family-home, occupancy rate would either be 0% or 100% at any given time, so the "volatilty" is a lot higher than for a say 20 condo-mansion. If a londlord runs this as a business/investment vehicle, he needs, therefore, comparably more rent for the family home than for one of the condos.

OTOH, legion's "need legroom" point is a very valid one. We are living in something like a 2LDK plus the space of a former coffee shop and I still feel like a tiger in a cage. Can totally relate to it.

It's a Nagoya issue... no matter the size of the house... you are still in Nagoya...
Even country side-ish Yagoto crush you pretty fast...

[Takechanpoo]

why the heck use a metaphor of tiger? eh?
cow/cattle is more suitable, isnt it? and they stay still inside the cramped shed.

[Coligny]

Somebody forgot to put the trash out...

[Mike Oxlong]

why the heck use a metaphor of tiger? eh?
cow/cattle is more suitable, isnt it? and they stay still inside the cramped shed.

Perhaps Grumps is restless, no?

[legion]

On another tack, I think the commercial property market might be heading for interesting times. Abenomics building boom may have left us with a glut on the market.

[Grumpy Gramps]

cow/cattle is more suitable, isnt it?

You are right, it is true that I am sooo cute, but usually I am also too humble to brag about it, so I chose the tiger instead

Proof:

cutie.jpg

[Coligny]

And don't make him post his homemade seks tape... nationnal geaographic has an exclusivity contract...

[matsuki]

why the heck use a metaphor of tiger? eh?
cow/cattle is more suitable, isnt it? and they stay still inside the cramped shed.