Rent vs Buy Calculator
Compare the long-term financial impact of renting versus buying a home in Japan, factoring in taxes, fees, and depreciation.
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Property Details
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Mortgage Details
Typical: 0.3–0.8% variable, 1.5–3.5% fixed
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Years
Ownership Costs
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¥
Rent Details
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mo
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mo
Planning & Investment
Years
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0.5% (effective, after residential reduction)
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¥
Years
Financial Outcome
Initial cash (25% of property value) is insufficient to cover the down payment and acquisition costs.
Renting wins by ￥11,609,884
Breakeven:Never
Rent Total Wealth
￥18,060,860
Buy Total Wealth
￥6,450,976
Monthly Mortgage
￥126,751
Down Payment
￥8,000,000
Acquisition Costs
￥2,800,000
Rent Upfront Costs
￥480,000
| Year | Rent OOP | Buy OOP | Budget Ceiling | Rent Invested | Buy Invested | Rent Total Wealth | Buy Total Wealth |
|---|---|---|---|---|---|---|---|
| 1 | 144万 | 177.9万 | 177.9万 | +33.9万 | +0 | 1075.3万 | 716.2万 |
| 2 | 156.8万 | 177.8万 | 177.8万 | +21万 | +0 | 1140.1万 | 713.9万 |
| 3 | 145.4万 | 177.6万 | 177.6万 | +32.2万 | +0 | 1219.2万 | 713.1万 |
| 4 | 158.4万 | 177.4万 | 177.4万 | +19.1万 | +0 | 1287.8万 | 713.9万 |
| 5 | 146.9万 | 177.3万 | 177.3万 | +30.4万 | +0 | 1370.9万 | 716.5万 |
| 6 | 159.9万 | 177.1万 | 177.1万 | +17.2万 | +0 | 1443.6万 | 720.7万 |
| 7 | 148.4万 | 176.9万 | 176.9万 | +28.6万 | +0 | 1531万 | 726.7万 |
| 8 | 161.5万 | 176.8万 | 176.8万 | +15.2万 | +0 | 1608.1万 | 734.5万 |
| 9 | 149.9万 | 176.6万 | 176.6万 | +26.7万 | +0 | 1700.3万 | 744.2万 |
| 10 | 163.2万 | 176.4万 | 176.4万 | +13.3万 | +0 | 1782.1万 | 755.8万 |
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Frequently Asked Questions
What are typical mortgage rates in Japan?
Very low mortgage rates (0.3-0.8% variable, around 3.2% fixed for Flat 35).
What is the typical down payment?
Usually 10-20%, though some banks offer 0% down for permanent residents.
How does building depreciation work?
In Japan, buildings depreciate to near-zero over their statutory life (22 years for wooden, 47 years for concrete). Only the land retains value.
What are acquisition costs?
Broker fees, registration taxes, and loan fees usually total around 7% of the property purchase price.
Should I choose fixed or variable rate?
Variable rate mortgages (~0.3-0.8%) are currently cheaper but carry interest rate risk. Fixed-rate Flat 35 loans currently run ~2.5-3.5% and provide stability.
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This is a simplified estimate for informational purposes only. Actual rates, taxes, or outcomes may vary. Consult a professional before making financial decisions.