RetireJapan

Sorry Mr.Goodkat did not see your message

I applied via the real estate agent who sold me the house. The bank used was SMBC. This was not done online, met with the bank directly.
The real estate agent helped us a lot

Seems there is a new financial structure which allows you to live in a property until you pass away.
II heard it second hand via my wife, sorry for the lack of detail but goes like follows:
from a late age, from age 60 also possible.. you are allowed *buy* a property in Japan with money from the bank
You *buy* the property, pay all the property purchase legal/insurance fees
You only pay interest on the money you receive from the bank, the principal is not paid down
When you pass away the property is returned to the bank..
From my understanding there is a life policy involved
I guess if you have no dependents its an option

Sorry I have no more detail on this, might be something to ask next time when discussing options for buying a property...

concerned wrote: ↑Sat Jul 16, 2022 8:21 am Seems there is a new financial structure which allows you to live in a property until you pass away.

Seems a bit unlikely as written given depreciation of buildings.

If true, sign me up! Sounds like a great deal

concerned wrote: ↑Sat Jul 16, 2022 8:21 am Seems there is a new financial structure which allows you to live in a property until you pass away.
II heard it second hand via my wife, sorry for the lack of detail but goes like follows:
from a late age, from age 60 also possible.. you are allowed *buy* a property in Japan with money from the bank
You *buy* the property, pay all the property purchase legal/insurance fees
You only pay interest on the money you receive from the bank, the principal is not paid down
When you pass away the property is returned to the bank..
I guess if you have no dependents its an option

Sorry I have no more detail on this, might be something to ask next time when discussing options for buying a property next time...

WOW. Sounds cheaper than rent and non of the loan risks. Or the bank is moving into rental property. That would be an awesome deal.

I wonder if there is an Endowment element to this? EG. you pay so much for 35 years, (invested), and then after 35 years, it pays out to try and cover the mortgage, or if you die the life policy element kicks in and pays off the mortgage? Also if there I any short fall, after 35 years inflation would have reduced the value of the loan. I used to have an interest only mortgage years ago. They're a great ideation theory.

*or if you die the life policy element kicks in and pays off the mortgage? *
I have edited the post to also add this, from my understanding there is ,I have edited my original post to include this.
Again sorry for the lack of detail.

I think its just a reverse mortgage. I've seen it advertised in various banks.

Here it is from the JHF (Japan Housing Finance Agency)

https://www.jhf.go.jp/loan/yushi/info/y ... index.html