Renting while retired

[bunbunaz]

Found out that we did indeed get the apartment. Yeah!

One thing I forgot to mention in my previous post was when we filed our initial application with the realtor, we asked if we should include some financial statements since we had no fixed income like a job. We had read that having a bank account with enough money to cover the life of the rental contract would help. The realtor told us that would help as he said the application as filled out (without that info) would definitely be rejected. Fortunately for us we had moved some money to my Japanese bank account in anticipation of doing some reforms on my wife's family's house since there would be 5 adults living there, not 3 anymore. So our balance was more than enough to cover the rent for the two year contract. A simple screen shot from our bank's online site with the bank name, account number and current balance was apparently enough to do the trick.

All in all I think our realtor did a good job of making sure we were putting forth the best application we could. Bank account, Dad's associate JA membership and short explanation of being close to family apparently hit all the right notes.

[Max]

The subject of landlords in Japan not wanting to rent to oldsters is of interest to me, as a renter no longer in the first blush of youth. I hope and expect that my wife and I will be able to stay in our beautiful old house "for ever", but of course nothing is guaranteed. I would not want to be doing the rounds of real estate agents at 70-odd and encountering the crossed-arms gesture everywhere.

However, given the demographic trends, I expect this particular discrimination is likely to diminish. An ever-increasing proportion of a shrinking population is going to be elderly, and more and more landlords are likely to be desperate to find renters, so will surely be more willing to take a the risk of a tenant polluting their property by dying in it.

The general population here may also become less concerned with whether a previous occupant died on the premises. I wonder whether many forum members would hesitate to rent/buy in these circumstances, whether in Japan or in their countries of origin. I don't think I'd be too concerned, especially if I got a nice discount on the rent/purchase price.

[beanhead]

The general population here may also become less concerned with whether a previous occupant died on the premises. I wonder whether many forum members would hesitate to rent/buy in these circumstances, whether in Japan or in their countries of origin. I don't think I'd be too concerned, especially if I got a nice discount on the rent/purchase price.

It is possible that your landlords will want to sell up eventually and will offer the house to you. I have heard of this happening.

You may be right about the supply/demand for renal properties in the future, but you may not. Predicting what will happen 10 or 20 years from now is tricky.
Owning property basically means you don't have to rely on someone else. You are in control, to a certain extent. (It is, in my experience, more expensive than renting, when all costs are taken into account).

[Max]

I think I will quite likely have paid more from renting this place over decades than I would have by buying, but the rent is very reasonable for a ten-room house not in the middle of nowhere. Parking is included and, this being Japan, the rent won't go up. And when I think how much housing costs in the UK, it's a bargain, so I'm not going to sweat if I'm paying a bit more than I might have in a perfect world.

Then there's the risk of earthquakes or other natural disasters. If this house gets flattened, it's a major inconvenience, but we move on to another dwelling without major financial loss. If you own a house, unless you bought it dirt cheap, it's a financial disaster. And we can just up sticks and go somewhere else if we choose to, rather than being tied to a house we own. Well, okay, all this is assuming we can overcome possible age discrimination if moving within Japan.

Our landlord has told us that he will knock down the house, which is pretty old, after we move out. To me that strongly implies that we can stay here for the duration. (There wouldn't be a queue of people waiting to move in. The house had stood empty for about ten years before we came along.) This is also good news because we have cats. As we all know, many landlords are not pet-friendly. Also, our furry friends have done quite a lot of damage, which would likely cost quite a bit to put right. The landlord can't reasonably demand that we make the good the damage when he's already admitted he'll be knocking the place down.

[Tsumitate Wrestler]

I think I will quite likely have paid more from renting this place over decades than I would have by buying, but the rent is very reasonable for a ten-room house not in the middle of nowhere. Parking is included and, this being Japan, the rent won't go up. And when I think how much housing costs in the UK, it's a bargain, so I'm not going to sweat if I'm paying a bit more than I might have in a perfect world.

Then there's the risk of earthquakes or other natural disasters. If this house gets flattened, it's a major inconvenience, but we move on to another dwelling without major financial loss. If you own a house, unless you bought it dirt cheap, it's a financial disaster. And we can just up sticks and go somewhere else if we choose to, rather than being tied to a house we own. Well, okay, all this is assuming we can overcome possible age discrimination if moving within Japan.

Our landlord has told us that he will knock down the house, which is pretty old, after we move out. To me that strongly implies that we can stay here for the duration. (There wouldn't be a queue of people waiting to move in. The house had stood empty for about ten years before we came along.) This is also good news because we have cats. As we all know, many landlords are not pet-friendly. Also, our furry friends have done quite a lot of damage, which would likely cost quite a bit to put right. The landlord can't reasonably demand that we make the good the damage when he's already admitted he'll be knocking the place down.

Buying is not just about paying less than renting, but having an asset that can appreciate.

If one buys in a desirable area, the structure may depreciate, but the property often appreciates. Leaving you free to rebuild, or sell, and downsize later in life. Property values in many areas of Tokyo were up 5% this year alone.

I would also point out that you express concern about natural disasters when living in an older home that may not meet newer earthquake codes. Rehoming yourself and your cats following a large earthquake will be an absolute nightmare. One that becomes increasingly more difficult with age.

[Max]

A new-build house of the same quality and charm would be extremely expensive to have built, and I wouldn't want to downgrade. For practical reasons we need to live in a detached house.

I don't worry a lot about earthquakes or tsunami, so I'm comfortable with the calculated risk of staying in an older house, in addition to the other reasons I mentioned. We won't be going to live in the UK, but there's a decent chance of moving elsewhere in Japan, or to a third country. There's also a chance we might inherit my in-laws' house

[jane doe]

I would say, absolutely, if renting, save yourself the grief with private landlords, and go for a UR. I was amazed at how well it worked in my situation (forced to retire at 65 from a UK organisation). All I had to do was show a current bank statement that showed that my bank balance was a multiple of the monthly rent. If you have retired with some savings (I hope for your sakes that's the case!), the fact you don't need to prove income could be a gamechanger.
My flat is rent controlled, so what I get for the money is way superior to what the private rental market offers. The only catch with this particular flat is that it is for a maximum 3 year period. But I can apply for another flat on the same estate if I want.
And if you are not tied to a particular location, and can live a bit further out, there are some real bargains to be had.

What I would do next, once you have had a chance to explore a bit, and if you have some savings, look to buy somewhere cheap to live for the next few years. Again, if you are not tied to daily commutes and are flexible about location, there are some real bargains out there. Just don't look on it as an investment, but as a home ie. bake in the fact you might not get much of your money back if you sell up.


then later on, if you want to move back to your in-laws place, that's always an option.

[TokyoWart]

I would say, absolutely, if renting, save yourself the grief with private landlords, and go for a UR.

What is a "UR"?

[beanhead]

I would say, absolutely, if renting, save yourself the grief with private landlords, and go for a UR.

What is a "UR"?

Cheap apartment. Government managed (?)
Stands for Urban Renaissance, apparently.

https://www.ur-net.go.jp

[AreTheyTheLemmings?]

What is a "UR"?

You may know them under their old name, kodan.