Renting vs Buying Which is better?

Poste date: Friday, October 27, 2023



Which is better: living in a rental property and continuing to pay rent or buying a property for sale? This is a frequent question that many people are wondering about. It is very difficult to give you a clear answer because it depends on the person’s life plan, the way of thinking about his/her life, and the social situation. But we would like to show the advantages and disadvantages of renting and buying a home here, so that we can help you make your choice even a little.

1. The big difference between renting and buying

It is only natural that a rental property will not become yours even if you continue to pay monthly rent. However, when you purchase a property, the purchase price minus the decrease in the value of the building becomes your asset.

2. Advantages and disadvantages of renting and buying



Renting

【Advantages】

  1. You can move out relatively freely when you have to move out due to a job transfer, noisy neighbors, a growing family, or other reasons.
  2. The lessor will pay for any repairs or breakdowns of equipment that are not attributed to your fault.
  3. You can control the cost of housing according to the increase or decrease of your income.

【Disadvantages】

  1. You will have to continue paying rent and renewal fees for the rest of your life, even after you retire and give up your income.
  2. As you get older, an "identity underwriter" is often required for tenants, in addition to a joint guarantor or a guarantee company. (An identity underwriter is a person to contact or consult with in case that something happens to the tenant.)
  3. It is not possible to change the interior and facilities to your liking. (There are some exceptions.


Buying

【Advantages】

  1. If you pay off your housing loan by the time you retire, you will be able to reduce your housing costs after retirement.
  2. Compared to renting, there is a wide range of options such as floor plans and equipment and the quality level of housing tends to be higher.
  3. You can change the interior and facilities to suit your taste.
  4. Tax breaks such as deduction of housing loans are available

【Disadvantages】

  1. Maintenance costs associated with the deterioration of the building are high. In the case of apartments, management fee and reserve fund for repair may increase year by year.
  2. Basically, it is difficult to lower the cost of housing except by refinancing a housing loan.
  3. You have to pay property tax, and city planning tax as well depending on the location.

3. Cost comparison between renting and buying

What kind of contract terms will you choose for your rental home? What kind of housing loan will you take out when you buy the property, and how much will you take out a housing loan?
Depending on these factors, the amount of money you will spend may vary greatly.
Therefore, it is very difficult to estimate which will actually cost more, renting or buying.
You can find various calculations on the Internet, but the results may vary such as from almost no difference to a considerable difference between renting and buying.

However, one of the major differences in expenditure can be seen in the case when someone buys a property by using a housing loan, but he/she (insurance subscriber) passes away. In this case the loan amount comes with life insurance, so the inheritors are possible to receive the property without repayment of loan balance, making a large difference in terms of a total cost payment.

4. Summary

Which is better, renting or buying? As we described at the beginning, it is very difficult to provide a clear answer to the question. What kind of house do you want to live in? What plans do you have in the future? What is your ability to pay? How much risk are you prepared to take? After considering such various things, you may have to choose your best way.

Whichever option you choose, we recommend that you collect information or consult with experts to get a better deal, so that you can live in a house that “you really want to live in”​.

Exterior of Higashigaoka 1-chome House
Sale Property tag

The property is located in a quiet residential area about 300 meters west of the 7th Road. Komazawa Park, Summit Nozawa Ryuunji Store, and Seijo Ishii Kakinokizaka Store are within walking distance. Commercial facilities such as supermarkets, convenience stores, restaurants, and banks are located around Komazawa Station, which provides a convenient living environment. This is a 2-story, 3LDK house with a parking space and a balcony. It has a spacious living/dining room of approximately 32m2 and an island kitchen. There is a shoe closet, a storage room, and closets in each bedroom. In addition to a home, the property can be used as a second home, hobby room, rental investment, etc.

JPY169,000,000

Exterior of Daita 1-chome House
Sale Property tag

9-minute walk from Setagaya-Daita Station, which has been the talk of the town as a hot spring resort and a sacred site for TV dramas, this warmly colored residence is located in a quiet residential area. The DOLCE series, formerly sold by Daiki Kensetsu. Delicate details such as floor tiles and skirting boards are also included. The spacious 2LDK+DEN with a total floor space of approximately 30 Tsubo. 17.8 Tatami mats LDK with a roof balcony. Roof balcony.

JPY260,000,000

Exterior of Harumi Island Triton Square View Tower
Sale Property tag

Harumi Island Triton Square View Tower is a steel-framed reinforced concrete structure (partly steel-framed, partly reinforced concrete) with 50 floors above ground and 2 floors below, totaling 624 units, located in Harumi 1-chome, Chuo-ku, a 7-minute walk from Tsukishima Station on the Tokyo Metro Yurakucho Line and a 9-minute walk from Tsukishima Station on the Toei Oedo Line. This large-scale tower condominium is located in Harumi 1-chome, Chuo-ku, Tokyo. In the surrounding area, supermarkets and convenience stores convenient for daily shopping are located within a 5-minute walk, and parks are also nearby. Hospitals are also accessible within a 10-minute walk, providing all the facilities necessary for daily life. The educational environment is also a safe location for households raising children. This residence is suitable for those seeking a comfortable life in the city center. The management system is fully outsourced, with day shift management, and large-scale repair work was conducted from 2009 to 2010.

JPY 109,990,000 - 179,000,000

Exterior of THE TOKYO TOWERS SEA TOWER
Sale Property tag

High-rise Apartkent in Kachidoki. Guest room, party hall, small library, theater room and other amenities and facilities. Concierge service available for miscellaneous needs.

JPY 129,800,000 - 210,000,000

Exterior of Kachidoki View Tower
Sale Property tag

It stands in front of the Kachidoki Station on Toei Oedo Line. It is connected directly to the station underground. A park is found in the neighborhood. Ginza is within 1.5 km. It is in a popular bayside area. It overlooks both Sumida River and Tokyo Bay nearby in a very open area. Kachidoki View Tower is a 53-story ultra high-rise apartment. A public daycare, grocery store and restaurants are found within the building. The park next to the property has 4,700 sqm. space. It is a highly convenient condominium apartment. A party room, guest room, theater room, library, etc. are placed in the common area. It also provides 24h. management services as well as hotel-like concierge service. It houses 712 units in total. The floor plans ranges from 1LDK to 3LDK. It offers high quality private living space in high up in the sky of Tokyo. The beautiful and the latest functional specifications are provided to each unit.

JPY 328,000,000 - 398,000,000

Exterior of THE TOKYO TOWERS MID TOWER
Sale Property tag

High-rise Apartment in Kachidoki. Guest room, party hall, small library, theater room and other amenities and facilities. Concierge service available for miscellaneous needs.

JPY 188,000,000 - 240,000,000