Buy? rent? where is the break-even point?

You say commonly, to for the person of the age when it approaches “residential purchase marriageable age”, “you buy the house, or without buying you borrow and continue?” it probably is one of big problems.Here it tries comparing with the simulation which is squeezed to housing expenditure concerning the loss and gain of both.

As for burden when moving the one which is bought is larger

Whether when the house is bought with when it continued to borrow, about some difference appears in the life cost of housing expenditure, simulation it will try doing.

First it is setting condition, but when “you buy”, estimate it does with the case which purchases the new construction apartment of 3,905 ten thousand Yen with 76m 2.This numerical value under Tokyo of the current seniority half (January ~ June) by the real estate economic laboratory is even.Other main conditions are as follows.

Down payment 8,050,000 Yen and housing loan borrowing amount 3,100 ten thousand Yen (interest 3.0% and 35 year repayment)
Loan refund 110,000 9,303 Yen, administrative expense 10,000 3,000 Yen and repair reserve funds 6,000 Yen
Tax (property tax and city planning tax) approximately 210,000 Yen of every year (at the beginning as for 5 years there to be reduction,)
Housing loan amount deducted 200,000 Yen (at the beginning 7 years.As for 8~10 year eye 130,000 Yen)

on the other hand, rent if you rent, heisei japan rental housing management association17years12month~18years3from the data of the month, of rapid city, tokyo14ten thousand6,721referring to the yen14ten thousand6,000and the yen was (rental apartment70~90m 2 ) . other conditions that are set as follows:.

· common expenses1million yen
cost and at the time of occupancy58ten thousand4,000yen (rent4months minutes)
· renewal fee14ten thousand6,000yen (2year1degree)

but take money at the time of first occupancy, if such security deposit to rent58ten thousand4,000is ¥. in contrast, if the buy price as a down payment2expenses and the allocation (price of3~5%) when you set up and pay the, accordance with955will be ten thousand yen. although there are recent change in case the full amount even if there is no down payment mortgage, only expenses100when moving the burden of big is better buy because it takes more than ten thousand yen is common.

the monthly rent is more heavy burden

will take money to do after moving in. monthly cost is if you buy and repair reserve fund administrative expenses of the apartment and the repayment of loan. the loan interest rate3%and to calculate the fixed rate of, 35monthly repayment amount in the year repayment12ten thousand yen weak. in conjunction with the reserve standard management and repair costs13ten thousand8,303yen will be.

if the borrower is the standard rent14ten thousand6,000common expenses in yen1the addition of ten thousand yen15ten thousand6,000¥, than if you buy1ten thousand8,000calculation is the higher yen. the scene is often seen an increase in loan interest rates this place, also at fixed interest rates still3%you can borrow at around. if this level of low interest rates, compared to an apartment in about the same size, there is no better buy than to rent it at least monthly burden becomes lighter.

the annual housing costs there is no great difference

but, when you buy is a major difference with the case, such as tax point each year take to borrow property tax. fixed asset tax and city planning tax is the tax will vary by region and condominiums, here is a standard amount per year as21has been calculated as a ten thousand yen. it should be noted, initially the case of newly built condominium5the annual tax fixed assets worth of building2minutes of1will be reduced to.

also, you will receive credit mortgage to buy a house and mortgage borrowing. from tenants10years, this system will come back a certain percentage of income tax deducted from the balance of housing loans. year systemyou are to be reduced, heisei18if the initial move into the year7the annual loan balance (limit3,000million yen) of1%is, 8~10first year0.5%will be deducted is. having said, be more than the income tax deduction does not have paid, here originally as a standard deduction7the annual20was calculated in ten thousand yen.

as a result, when you subtract the tax amount of monthly payments and annual, year’s initial burden is if you buy160ten thousand yen is strong, the end of the mortgage deduction11subsequent years187is one million yen. on the other hand, annual amount of rent and maintenance fees if rent is187ten thousand2,000because the yen, 2will be much different even if there is no housing costs even if the annual rent buy even considering the annual renewal fee.

45comparison of annual total on the next page.

break-even point38visit the second year

when you buy is on the cost of the initial occupancy is greater, not much different from running cost of rent per year if, of the total burden will remain open much difference. however, 35turning point will come to years later. repayment mortgage is when you buy it to finish.

after the repayment burden significantly so lightly, the difference between the amount of the cumulative burden shrinks rapidly, the reversal soon. in this simulation, 38also reversed early in the first year, subsequent years the differencewe will open. is that it shows how the graph below.

if you buy an apartment become assets

38years and say, 30as i bought at the age of67years. is the age you are migrating to pensioners and retired people most. some are said to not know how much i get that public pension, years and a sense of burden much the rent will continue to pay to rent a housewill feel heavy. that point, and repair reserve fund to pay administrative expenses if the home ownership loan finished, leads to a sense of security because of the tax burden be reduced by simply.

further point is that asset when buying an apartment become part of one’s personality, if the rent is a major difference between. built40there is also debate on whether there is asset value of how the apartment before and after the year, also built at this time30mansion that can not lend or sell at least a year before and after. if the current apartment has been enhanced earthquake resistance standards, built40possibility of the market will be high even in years. lent to a person apartment home, old age is also considered alternatives such as moving to housing for the elderly.

the reality is also occur renovation and moving

of course, because this simulation is compared in a very simple case, does not mean that the actual number of this street. if you buy a house or remodeling outdated, you may also need to be added in order to repair large-scale cost per apartment. in some cases, also considered a new burden occurs in the case kaikae. by raising to repay the reverse mortgage, it is also possible to lighten the burden by the end of repayment ahead of schedule.

on the other hand, although this assumes that you live in the same apartment to rent if much, in fact several times to repeat the move in response to changes in family structure would be realistic. initial cost is generated each time, the rent is also up and down. after the couple retired2it can also move to lower rent apartments in the only human in a more compact.

elaboration will also understand the advantages and disadvantages of non-money

in the simulation, but only provides a comparison of housing costs it, there are advantages and disadvantages in terms of money is hard to each. the benefits of, for example if you buy, grade of specification facilities and condominium apartments in general is higher than in the house can be renovated as you like sense of security and stability of life can be expected by having your own home and that will be mentioned. conversely, if the benefits of rent feel free to new home hikkoseru house when it becomes stale there is no sense of the burden of mortgage that demand less economic loss even if the apartment is damaged by an earthquake or other will be considered and.

in essence, or borrow or buy, including economic loss and gain, will that may be selected by the prospect of future living and lifestyle. however in choosing, is to decide on what you want to understand the advantages and disadvantages of both.