Jim (American; 45 years old; 17 years in Japan) House for a family of two in Yokohama purchased in September 2008 for ¥65 million.
“I thought it would be difficult to find a rental where I could park a car and a couple of motorcycles, as well as keep a couple of pets. Also, I thought it would be better to invest in property rather than rent. I’m not sure how long I’ll stay in Japan — but I’ve been saying that all along!
“The house is very well constructed, it looks like a ‘house’ (there are some strange designs here), and there is a decent amount of space between it and the surrounding properties.
“I bought it together with my wife. We split a 35-year loan we took out through a bank that the real-estate company introduced. We plan to pay it off sooner.
“The process went very smoothly, no doubt helped by the fact that I’m a permanent resident and we qualified financially. Of course, decreasing property values are a concern, but when you rent you’re spending money that will never return. To help ensure the property value remains high, I chose a location that’s quiet as well as convenient for commuters going to Tokyo or Yokohama. I also think the garage will make the property attractive as it’s a rare feature and will be a big sales point.
“At the end of the day, even if I never turn a profit I’ll be doing quite well if I can live in a nice place for a number of years and get most of my investment back.”
Rab (Scottish; 8.5 years in Japan) Land in Saitama Prefecture purchased for ¥14.5 million, and a log house for a family of six being built for ¥30 million.
“We realized that paying money every month in rent would leave us owning nothing when we retired, yet the mortgage payments every month (about the same as the rent) would result in us owning a house and land.
“It had to be a house and land, as we have two kids and wanted space for them to play in and also to fully incorporate some eco concepts into the residence. Having been out to the start of the Japan Alps near Chichibu, we liked that area (countryside, forests, mountains rivers, etc.) and the commute to my work in Tokyo was not too bad.
“The biggest challenge was qualifying for the mortgage. The borrower needs to be in a full-time job and have been in it for at least two or three years. Also, any outstanding loans reduce the amount that can be borrowed.
“I am aware that house prices fall in Japan over time — basicaly for quality reasons. But this is not a factor with log houses as they maintain their structural integrity. Whether the Japanese housing market is aware of this is irrelevant as we don’t plan to sell, but to set up home there for good as we can have low bills, grow food, have access to water, space, beautiful scenery and an eco-friendly lifestyle.