There are numerous risks associated with owning a home.
Firstly, financially speaking, the value of a mediocre property keeps decreasing.
The essence is, if demand diminishes, since Japan’s future entails a decrease in demand, one cannot anticipate an increase in asset value, right?
When we talk about demand, it essentially boils down to population.
If the population increases, housing naturally becomes necessary, and if the population decreases, demand decreases—it’s a simple concept.
In Japan’s future, it’s natural for the population to decrease, and consequently, the workforce will diminish.
The demographic bonus period has ended.
In rural areas, survival often boils down to prime locations.
Of course, there are various proposals such as accepting foreigners, but fundamentally, when we read the future from past data, the likelihood of such a future is high.
The value of land, except for certain areas, has been stagnating for a while.
Therefore, the value of mediocre properties continues to decline, leading them to become liabilities.
Even after loan repayment, maintenance costs persist:
Real estate agents often say,
“Once you finish repaying the loan, the house is yours!”
or
“It’s a waste to pay rent every month! Make it yours!”
These are magical words indeed.
However, in reality, it’s not that simple.
In reality,
Property tax,
City planning tax,
Maintenance costs,
and for apartments,
Management fees,
Repair reserve funds,
on a monthly basis, sum up to roughly 20,000 to 50,000 yen in costs.
Occasionally, there are substantial repair expenses. After 10 to 20 years,
Exterior walls,
Roofs,
Plumbing,
require repairs.
In rental properties, the landlord takes care of these expenses.
But if it’s your own property, ultimately, you have to bear them.
In the end, it’s impossible to live with zero housing expenses.
