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Why the average family in Tokyo can own a new house for $850/month

By Sergey3 February 2017

While the cost of housing is climbing in many global cities, the average middle-class family in Tokyo can still afford to buy a new, single-family detached home for $300,000. That’s right. The typical Tokyo starter home is a brand new three-bedroom. How many New Yorkers will ever live in their own three-bedroom home, much less buy one?

Discussion

BarbaraEbara #12729

That is such a good deal for a huge city! I know here in the states, if you want to own a house, condo, or apartment in a major city, you are looking at spending a whopping $2,500+ a month!!

Yubi #12758

Buying a house on a 35-year loan, one pays around or less than the monthly rental of a house of the same size. The interest rates are around 1%, which is quite low. And if you are buying a new house, the government will give a tax return of 1% of the remaining loan for the first 10 years. This is like having an interest free loan for the first 10 years. Unlike in places with "housing bubbles", people can't buy a house now to sell it for a higher price later. The value of a house will go down over the years, especially for single houses. Maintenance fees are higher for apartments when they get older. So, you can't see the house buying craze that is seen in Hong Kong happening in Tokyo.

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