RetireJapan

beanhead wrote: ↑Fri Oct 08, 2021 11:13 pm I think if you tried to get a loan at 60 you would have issues, but not in your 40s. Japanese banks don't seem to have a problem with issuing loans that go past normal retirement age. Is the assumption that the kids will take on the payments if the lender cannot? Or that we will all have to work until 70/75? Who knows...

This depends heavily on your employment situation.

As a business owner, I could not get a mortgage that extended past 70 because my employment situation was 'shaky and unpredictable'.

Jansen wrote: ↑Sat Oct 09, 2021 10:45 pm
This depends heavily on your employment situation.

As a business owner, I could not get a mortgage that extended past 70 because my employment situation was 'shaky and unpredictable'.

Good point. I know the banks are more strict with business owners, directors.

We were renting and paying 90,000 for our 80sqm place (with parking). I was on the fence as our subsidy was 30,000, and it dropped once we built our place (150sqm). Still, we kept the mortgage payments to 80,000 and have lived here 20 years, so I'd say we came out way ahead.

EmaxisSlim Cultist wrote: ↑Fri Oct 08, 2021 5:38 am
However, I am slightly worried if we wait until our 40`s, the mortgage situation might not be as favorable. I am also worried that there will be limited rental options later in life if we decided NEVER to purchase.

I would not except rates to rise much over the next ten years.

With a declining population, I imagine finding cheap, older housing will not be an issue.

eyeswideshut wrote: ↑Sat Oct 09, 2021 12:34 am It also offers the freedom to move on a whim.

Not sure about Kanto, but in Kansai the "key money" can be ten months rent. A big incentive not to move on a whim!

My wife has a government job. We live in employee housing.

As an adjunct, my work is fairly stable, but my commute is likely to remain unpredictable.

Options are：

(a) Current housing, Showa era 3LDK. 4.5万 rent.
(b) Up to 3万 subsidy for renting.
(c) Zero subsidy when buying.

After discussing our options, we will plan to remain here for 5 years and re-evaluate. If we decide to have another child, the lower rent, and reduced stress of living in an older apartment that is designated for families, is a considerable plus.

Also this: https://rationalreminder.ca/podcast/170 (Are Homeowners Happier than Renters?)

EmaxisSlim Cultist wrote: ↑Sun Oct 10, 2021 5:19 am My wife has a government job. We live in employee housing.

As an adjunct, my work is fairly stable, but my commute is likely to remain unpredictable.

Options are：

(a) Current housing, Showa era 3LDK. 4.5万 rent.
(b) Up to 3万 subsidy for renting.
(c) Zero subsidy when buying.

Ah, ok, ... when you say "we live in employee housing" I take that to mean you have no choice but to live in a certain assigned building then. That's different from what we had, where my wife's company just provided a budget that we were free to use anywhere... which is why I suggested simply moving to a better place. And yeah, a 3万円 subsidy for renting is nothing to write home about in the Tokyo area. Given that, sounds like you came to the logical conclusion yourself!