@ JameBigglesworth:
I think mjm's point was, it can make sense to buy instead of rent in Jpn and this is an example of how. I don't think his intention was to make a blanket statement to say it makes sense to buy everywhere in Jpn. I don't think it's worth pouncing on just because he may have typed 'does' instead of 'can' or didn't elaborate further with a couple extra words he could've used.
On the other hand, your original comment was:
IMO, no one in any country should ever consider their personal home an investment. But again, there are many markets within US where buying clearly makes sense from financial standpoint, and then there are many others where it doesn't. Apparently mjm is saying the same applies in Jpn.
Originally Posted by
JamesBigglesworth
Oh, and looking at the data, the number of areas where *residential housing* appreciates in Japan is exactly *zero*. *Land* is valued and appreciates. Improvements (ir. buildings) aren't taken into consideration in ratable value or general residential real estate - although the cost to demolish and existing building can affect the land value. Residential housing in Japan only depreciates with some very rare exceptions.
I don't have much insight into this, but I'm sure you're right about this. Of course buildings depreciate in value over time, but I've read that this is particularly fast and furious in Jpn to the extent that a 20yo house is worth very little in and of itself. In my area, 20yo homes are considered relatively new and move-in ready, and people usually don't remodel homes that are <20yo.