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I call bullshit. First off, I’m willing to bet that the size of the Tokyo home is half or less compared to the New York option. There are “cheap homes” in Tok

by donw 4y ago

I call bullshit. First off, I’m willing to bet that the size of the Tokyo home is half or less compared to the New York option. There are “cheap homes” in Tokyo. They are effectively unlivable by modern standards, and when a Japanese person buys one, they do so to tear it down and build something new. If you do this, all of that is money wasted. The full value of your home will depreciate after 22 years. It only makes sense to buy if you never plan on selling. Or leaving.

hgfdhgdfhgf 4y ago
The figures cited for Tokyo are for "newly constructed homes" "The average price of a newly constructed house in the Tokyo area was ¥43.3 million. In central Tokyo, it was ¥60.6 million."
- donw 4y ago
  This is a JPY ~80M home in Nerima, one of the cheapest, and remotest, districts in Tokyo: https://www.athome.co.jp/kodate/1013825667/?DOWN=1&BKLISTID=001LIP&SEARCHDIV=1&sref=list_simple https://www.athome.co.jp/kodate/1013825667/?DOWN=1&BKLISTID=... The lot is 100 sqm (1000 sqft) the home is about the same, over two stories. Each bedroom is roughly half of what you would expect in an American home. The kitchen has effectively zero counter space. This is quite common in Japanese construction. For 60M, you’re going to end up at something like 3/4 of that. Without checking, I’m willing to bet that standalone houses in the New York area are larger for the money. Do keep in mind that Japanese homes are designed to last precisely 22 years. So, after 22 years, each of these homes will be worth nothing more than the land they sit on.
  - fomine3 4y ago
    > last precisely 22 years This is myth believed for unknown reason. Let's see many people sign up 35yr house loan.
mellavora 4y ago
tokyo home is 1/2 the size of US. Perhaps. How does that equate to "unlivable"? Perhaps it is the US homes which are too large? Compare 1980 and after McMansions with a standard US home from the 1950-70s urban build-out. Why should a house be an appreciating asset? With reference to current US building standards which are NOT based on long-term structural integrity. A car depreciates much faster than 22 years, yet that doesn't seem a waste. What is the depreciation rate on your laptop? Your claim of "bullshit" only holds if you assume current US cultural norms are the one true way.
- donw 4y ago
  I never said it should be an appreciating asset. The value goes to zero. By law. A 22 year old used car has more value than a house of the same age in Japan. What happens if you get a job offer somewhere else? Tough shit, you’re gonna eat the cost of however much depreciation has happened on your house.
  - fomine3 4y ago
    It's just property tax value, not market value. You can find many old houses sold (I don't recommend to buy older than 1981). For extreme case example, 7500kJPY for 59yo house. https://www.athome.co.jp/kodate/chuko/tokyo/list/ https://www.athome.co.jp/kodate/chuko/tokyo/list/ https://www.athome.co.jp/kodate/6976556603/?DOWN=1&BKLISTID=001LPC&sref=list_simple https://www.athome.co.jp/kodate/6976556603/?DOWN=1&BKLISTID=...

by donw 4y ago

hgfdhgdfhgf 4y ago

The figures cited for Tokyo are for "newly constructed homes" "The average price of a newly constructed house in the Tokyo area was ¥43.3 million. In central Tokyo, it was ¥60.6 million."

donw 4y ago
This is a JPY ~80M home in Nerima, one of the cheapest, and remotest, districts in Tokyo: https://www.athome.co.jp/kodate/1013825667/?DOWN=1&BKLISTID=001LIP&SEARCHDIV=1&sref=list_simple https://www.athome.co.jp/kodate/1013825667/?DOWN=1&BKLISTID=... The lot is 100 sqm (1000 sqft) the home is about the same, over two stories. Each bedroom is roughly half of what you would expect in an American home. The kitchen has effectively zero counter space. This is quite common in Japanese construction. For 60M, you’re going to end up at something like 3/4 of that. Without checking, I’m willing to bet that standalone houses in the New York area are larger for the money. Do keep in mind that Japanese homes are designed to last precisely 22 years. So, after 22 years, each of these homes will be worth nothing more than the land they sit on.
- fomine3 4y ago
  > last precisely 22 years This is myth believed for unknown reason. Let's see many people sign up 35yr house loan.

mellavora 4y ago

tokyo home is 1/2 the size of US. Perhaps. How does that equate to "unlivable"? Perhaps it is the US homes which are too large? Compare 1980 and after McMansions with a standard US home from the 1950-70s urban build-out. Why should a house be an appreciating asset? With reference to current US building standards which are NOT based on long-term structural integrity. A car depreciates much faster than 22 years, yet that doesn't seem a waste. What is the depreciation rate on your laptop? Your claim of "bullshit" only holds if you assume current US cultural norms are the one true way.

donw 4y ago
I never said it should be an appreciating asset. The value goes to zero. By law. A 22 year old used car has more value than a house of the same age in Japan. What happens if you get a job offer somewhere else? Tough shit, you’re gonna eat the cost of however much depreciation has happened on your house.
- fomine3 4y ago
  It's just property tax value, not market value. You can find many old houses sold (I don't recommend to buy older than 1981). For extreme case example, 7500kJPY for 59yo house. https://www.athome.co.jp/kodate/chuko/tokyo/list/ https://www.athome.co.jp/kodate/chuko/tokyo/list/ https://www.athome.co.jp/kodate/6976556603/?DOWN=1&BKLISTID=001LPC&sref=list_simple https://www.athome.co.jp/kodate/6976556603/?DOWN=1&BKLISTID=...