Job Discussion Forums

sidjameson · Joined: 11 Jan 2004 Posts: 629 Location: osaka

I have just seen a lovely new apartment. I mean, lovely. But at 46 million yen for 75m2, well I don't need a pyschologist to explain why I am nervous.
Does anyone have a good understanding of how much a new apartment depreciates on day of purchase? I think it's a bit of a myth that they continue to go down in value till they become worthless as I've also seen some 30 year old places that still cost 20 odd million, but with a far inferior design, but I would like to know what I can expect.

shuize · Joined: 04 Sep 2004 Posts: 1270

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

I thought you were leaving Japan. 46 million is a lot of money, what are the interest rates these days?

sidjameson · Joined: 11 Jan 2004 Posts: 629 Location: osaka

You're right Gordon, but half of me also thinks it's about time I quit living like a backpacker and actually made a home for once.
For me it's the constant dilemma. New adventure in a new country or to actually buy a home and start enjoying it.
1.42%

Khyron · Joined: 10 Mar 2006 Posts: 291 Location: Tokyo Metro City

sidjameson · Joined: 11 Jan 2004 Posts: 629 Location: osaka

The thing that amkes it so tough is that for most people who have been here a while, to move away would entail a real drop in earnings. Life in Japan really is lovely IMO, but do I want to look back when I am 60 and think how glad I am to have spent the last 30 years in Japan?
BUT I have this desperate feeling to buy a painting and hang it up. Know what I mean? Smile

madeira · Joined: 13 Jun 2004 Posts: 182 Location: Oppama

I wouldn't buy an apartment, and especially not one so pricey... but something to check into is the common fees.

Find out if there are any limits on how much they can go up from year to year. Those fees can easily outstrip your mortgage, especially as the building ages.

1.46% is good, but you should be able to get 1% for the first few years. Shinsei has good deals for new apartments. Your agent should help you get the best deal, anyhow.

46 million can buy a lot of house in Japan now... what kind of deluxe place are you looking at?

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

Khyron · Joined: 10 Mar 2006 Posts: 291 Location: Tokyo Metro City

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

sidjameson · Joined: 11 Jan 2004 Posts: 629 Location: osaka

Gordon I understand you completely, and agree, but just for the sake of fairness I want to say that I have taught at a very high level junior high school and now at a very good level university. Although I see plenty of what you're saying I do also see kids with a real spark to them. At the JHS Sometimes I caught a glimpse of their essays and I was genuinaly surprised by the maturity of their thinking at times. I think that the education system here is lacking for sure, but I also believe that education isnt all about school anyway. If a child grows up spending plenty of time with inquisistive, questioning parents then that's how the child will be later on too.
I dont think I would choose to raise kids here either, but if I did I think that I could avoid some of the pitfalls that befall the youth of Japan.

In Osaka 46 million gets you a new apartment in a good city centre location. Its not a penthouse by any means, but it does have GREAT views from every room, plenty of light and very nice furnishings. Honest anything under 30million, it's darkish, smallish or youre looking directly onto another apartment. Of course you can always leave the city centre, but the suburbs anywhere leave me cold. And Japan's surburbs are souless.

markle · Joined: 17 Jan 2003 Posts: 1316 Location: Out of Japan

I can understand how houses (not land) depreciate here, but apartments? I mean it's not like people can rip down a whole apartment block just because one tentant wants a new apartment. An apartment in a good central location with little competition (new apartment blocks) is not going to depreciate that much surely.

SeasonedVet · Joined: 28 Aug 2006 Posts: 236 Location: Japan

Hello Sidjameson,
I was thinking of doing the same. I wasn't really concerned about how they depreciate because I was planning on renting it out and buying another one.
Of course it didn't cost 46 million yen. That's too pricey for me. It was about half that. I met a guy who told me he bought an old house here at a low price and fixed it up and rented it out. ( good for him)
And I thought similar to what Gordon posted

Sweetsee · Joined: 11 Jun 2004 Posts: 2302 Location: ) is everything

Shuize called it Sid, how much is anyone's guess though.
We bought an old unit and fixed it up ourselves. We love it!
Major coin for the one you are looking at though, but hey, whatever floats your boat, right? It might make you feel better to get an idea of how much you could rent it out for, that way it won't feel like a weight around your neck when you feel the need to wander.
Nice thread by the way!
Enjoy,
s

madeira · Joined: 13 Jun 2004 Posts: 182 Location: Oppama

The only personal-type knowledge of apartments in Japan comes from my friends parents.

They bought new about 6 years ago, 60 million. Funky building, nice view. Every place has a really large terrace garden space.

Now valued at 30 million, with hefty common fees, as the 'funky' elevators and mechanical parking system require a lot of work.

We just bought land that incidentally had a house on it 3 years ago. 33 million paid, but we've had offers of 40 million recently. (The location and size of the lot are really good.) Now renting it out at a nice profit until we get back.

Why did that apartment depreciate so much? I don't know. Talk to a few more agents. There is a standard rate, I believe... and then there might be an 'Aneha-related' rate.