#12758 | posted by  Yubi | 8 years, 2 months ago on Why the average family in Tokyo can own a new house for $85…

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.