7 ms·

I didn't know about Japanese property tax, a quick google shows there are a lot of taxes, 1.7% annually. 2% on registration. + some extras https://resources.re

by rb808 8y ago

I didn't know about Japanese property tax, a quick google shows there are a lot of taxes, 1.7% annually. 2% on registration. + some extras https://resources.realestate.co.jp/buy/guide-to-japanese-real-estate-taxes/ https://resources.realestate.co.jp/buy/guide-to-japanese-rea...

toomuchtodo 8y ago
That’s about on par with the top ten highest property tax states in the US (~1.5-1.7% annually).
- rb808 8y ago
  Agreed, just most countries in the world don't have any property taxes, so was surprised to see Japan as having them. edit: I do agree there are some common property taxes globally, but they're just a few hundred or at most 1-2k a year, not like 1-2% in some of the US states (and Japan) https://en.wikipedia.org/wiki/Property_tax https://en.wikipedia.org/wiki/Property_tax
  - walshemj 8y ago
    I think most developed countries do in some form
  - luckydata 8y ago
    most advanced countries in the world DO have property taxes. Why do you think that's not the case?
    - cheerlessbog 8y ago
      Some places they are capped rather then percentages, I believe this is the case in the UK.
      - rcxdude 8y ago
        The UK doesn't have a direct property tax. The closest thing is the council tax (which is linked to the notional value of your home in 1991), but that is generally paid by the occupants, not the owner (and may be discounted or increased if a home is left empty depending on the disposition of the local council). It also doesn't update as the market changes, because it's effectively frozen 30 years ago.
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rtpg 8y ago
There are huge deductions for your primary residence This tax thing is an issue for people with multiple homes. Considering the set of people that concerns I wouldn’t cry too much over it
- PunchTornado 8y ago
  exactly, every country should implement high taxes for second homes.
  - chiph 8y ago
    What about the people owning homes as investments, or as part of their retirement plans? You can argue that a lake house would be taxed because it's lived in part of the year (weekends), but what if the owners put it on AirBnB after the children go off to university and the family isn't enjoying it together anymore?
    - KaoruAoiShiho 8y ago
      They should invest their money elsewhere, like new enterprises, instead of homes as rent-seeking is a negative on society, not a productive activity.
      - snowwindwaves 8y ago
        What if I require some leisure time to recharge so I can go back to work and be fully Productive? I need a lake house to go and relax at. The couple provides use of their lake house for my vacation.
      - formercoder 8y ago
        How can you state that rent seeking is a negative on society? How is it not just optimal capital allocation?
        luckydata 8y ago
nihonde 8y ago
Taxes and loans are cheap in Japan. Anyone with even a modest income in the US should have no problem carrying two homes in Japan.
- ginko 8y ago
  1.7% tax annually on property certainly doesn't seem cheap to me. I pretty much pay the same in interest on my mortgage in Norway.
  - nihonde 8y ago
    I pay ~4.5% on my mortgage and ~US$20k in property taxes. It’s all relative, I guess! Curious: your tax is 1.7% of what? Fair market value? Some official valuation?
syedkarim 8y ago
1.7% annually does not seem particularly high. That's fairly typical in Chicago and it's suburbs. The 2% registration fee on a sale seems roughly equivalent to a transfer stamp, though that cost varies from town to town.

by rb808 8y ago

toomuchtodo 8y ago

That’s about on par with the top ten highest property tax states in the US (~1.5-1.7% annually).

rb808 8y ago
Agreed, just most countries in the world don't have any property taxes, so was surprised to see Japan as having them. edit: I do agree there are some common property taxes globally, but they're just a few hundred or at most 1-2k a year, not like 1-2% in some of the US states (and Japan) https://en.wikipedia.org/wiki/Property_tax https://en.wikipedia.org/wiki/Property_tax
- walshemj 8y ago
  I think most developed countries do in some form
- luckydata 8y ago
  most advanced countries in the world DO have property taxes. Why do you think that's not the case?
  - cheerlessbog 8y ago
    Some places they are capped rather then percentages, I believe this is the case in the UK.
    - rcxdude 8y ago
      The UK doesn't have a direct property tax. The closest thing is the council tax (which is linked to the notional value of your home in 1991), but that is generally paid by the occupants, not the owner (and may be discounted or increased if a home is left empty depending on the disposition of the local council). It also doesn't update as the market changes, because it's effectively frozen 30 years ago.
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rtpg 8y ago

There are huge deductions for your primary residence This tax thing is an issue for people with multiple homes. Considering the set of people that concerns I wouldn’t cry too much over it

PunchTornado 8y ago
exactly, every country should implement high taxes for second homes.
- chiph 8y ago
  What about the people owning homes as investments, or as part of their retirement plans? You can argue that a lake house would be taxed because it's lived in part of the year (weekends), but what if the owners put it on AirBnB after the children go off to university and the family isn't enjoying it together anymore?
  - KaoruAoiShiho 8y ago
    They should invest their money elsewhere, like new enterprises, instead of homes as rent-seeking is a negative on society, not a productive activity.
    - snowwindwaves 8y ago
      What if I require some leisure time to recharge so I can go back to work and be fully Productive? I need a lake house to go and relax at. The couple provides use of their lake house for my vacation.
    - formercoder 8y ago
      How can you state that rent seeking is a negative on society? How is it not just optimal capital allocation?
      - luckydata 8y ago

nihonde 8y ago

Taxes and loans are cheap in Japan. Anyone with even a modest income in the US should have no problem carrying two homes in Japan.

ginko 8y ago
1.7% tax annually on property certainly doesn't seem cheap to me. I pretty much pay the same in interest on my mortgage in Norway.
- nihonde 8y ago
  I pay ~4.5% on my mortgage and ~US$20k in property taxes. It’s all relative, I guess! Curious: your tax is 1.7% of what? Fair market value? Some official valuation?

syedkarim 8y ago

1.7% annually does not seem particularly high. That's fairly typical in Chicago and it's suburbs. The 2% registration fee on a sale seems roughly equivalent to a transfer stamp, though that cost varies from town to town.