Home Loan Pension/No Remitted Income Tax
Posted: Sat Jul 13, 2024 4:20 pm
Not sure if this would have been better under the Real Estate or Taxes Board, but I think this goes better here.
I've read that others have difficulty obtaining a home loan in Japan on a pension. Has anyone had any luck?
If not I was considering taking a Pledges Asset Loan against my brokerage account or a Home Equity Line of Credit as I don't want to sell my investments and take a tax hit or sell our home/future rental. Give the money I took out as a loan to my Japanese wife prior to moving back to Japan (She has not lived in Japan for 10+ years and would not be subject to any gift taxes). Then move to Japan and have her pay cash for the home in her name. Then use my income to pay off the loan outside of Japan.
With the exchange rate so favorable right now I would wonder if it would be best to take a larger loan to not only buy a home but also to live off of for the first 5-years as a non-permeant resident to avoid any remitted income taxes? How would the NTA look at this given my wife would have no income and I would have no remitted income for the first 5-years?
I would need to do a cost benefit analysis to see if the interest on the loan paid off in 4-5 years would be more beneficial then trying to obtain a loan in Japan for our home and pay Japanese income taxes along with higher premiums on health care and long term care insurance would make since in the long run. However not having to deal with banking issues in Japan might be worth it all by itself.
I've read that others have difficulty obtaining a home loan in Japan on a pension. Has anyone had any luck?
If not I was considering taking a Pledges Asset Loan against my brokerage account or a Home Equity Line of Credit as I don't want to sell my investments and take a tax hit or sell our home/future rental. Give the money I took out as a loan to my Japanese wife prior to moving back to Japan (She has not lived in Japan for 10+ years and would not be subject to any gift taxes). Then move to Japan and have her pay cash for the home in her name. Then use my income to pay off the loan outside of Japan.
With the exchange rate so favorable right now I would wonder if it would be best to take a larger loan to not only buy a home but also to live off of for the first 5-years as a non-permeant resident to avoid any remitted income taxes? How would the NTA look at this given my wife would have no income and I would have no remitted income for the first 5-years?
I would need to do a cost benefit analysis to see if the interest on the loan paid off in 4-5 years would be more beneficial then trying to obtain a loan in Japan for our home and pay Japanese income taxes along with higher premiums on health care and long term care insurance would make since in the long run. However not having to deal with banking issues in Japan might be worth it all by itself.