Originally Posted by JamesBigglesworth

Highly selective choice of numbers & situation is highly selective.

I agree that it can and might make sense in some very specific locations within any given area. But you mislead when you mention specific examples in specific areas and then extrapolate that to "it most certainly does make financial sense to buy here in Japan."

Contrast your numbers with building a 3Bd house in, say, Aomori just outside Hachinohe. Now, seeing as we're being selective in our choice of numbers/situations let's say the foreigner doesn't qualify for a loan from a Japanese bank and is stuck using an international bank at (que horror!) 3%, with no tax break because the lender is not Japanese domiciled.

But a 3Bd rental (less than 10 years old) can be had for under 50k a month. And investments, particularly for non-Japanese builders (which we are talking about), are global so I can happily invest in, say, NZ and get 6% return without much effort.

I'm all for apples to apples comparisons and considerations. You're not making them. All I'm saying is that the numbers require more work than you're saying before someone decides what is best for their situation.

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. That's why the government gives tax breaks - to encourage people to build new. Its why, as I said up thread, people usually don't do much in the way of maintenance or updates on their homes.