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Renting vs Buying Which is better?

Post date: 10/27/2023



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”​.

Rental Apartments & Houses in Tokyo
Listings of popular and luxurious rental apartments, condominiums, and houses designed with expats in mind.
Apartments & Houses for Sale in Tokyo
Listings of apartments, condominiums, and houses available for purchase in Tokyo.
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Mita Garden Hills is a large-scale, total 1,002-unit Minato Ward luxury condominium jointly developed by the Mitsui Fudosan Group and the Mitsubishi Estate Group.　Located a 5-minute walk from Azabu Juban Station on the Toei Oedo Line and Tokyo Metro Nanboku Line, it is the first Garden Hills development in central Tokyo by the Mitsui and Mitsubishi groups in the 38 years since Hiroo Garden Hills, whose quality of the living environment has been nurtured since the completion of the project, with its lush greenery and tranquil surroundings. The project is an environmentally friendly ZEH-Oriented (expected to be acquired) project that symbolically embodies the respective brand concepts of the developers, Mitsui Fudosan Residential and Mitsubishi Estate Residence: ‘age-friendly’ and ‘live for a lifetime’. The vast site, with a planned landscaped area of approximately 7,000 square meters, is located on the former site of the Ministry of Communications, and consists of seven buildings: Park Mansion, West Hill, East Hill, North Hill, Centre Hill, South Hill and Villas. The building has a wide range of facilities including a members-only restaurant and a cafe lounge. The building also offers a wide range of services in collaboration with the Imperial Hotel, creating a high quality space and enhancing the quality of daily life. The building is scheduled for completion in March 2025. Building certification number: BCJ21 Honkenkakken 079 (dated as of 19 August 2021).

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WELLITH TOWER ATAGO TORANOMON

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Exterior of Grand Suite Hiroo
Sale Property tag
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The property is a luxurious condominium residence that stands in the residential neighborhood close to Arisugawa Park and the French and German embassies. The beautiful design harmonizing nicely to the surrounding scene makes the property appearing even more elegant. The interior uses plenty of natural rocks, which as a result produces luxurious atmospheres.

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Exterior of Tokyo Twin Parks
Sale Property tag
Tokyo Twin Parks

It is a 47 floor luxurious twin tower condominium with a right-wing and a left-wing building located in front of Hamarikyu Gardens and a 2 min.walk from Shiodome Station. The common use facilities which were designed for luxurious hotel image include an entrance, lobby, front desk service, various lounges, a guest room, and a fitness room. The up-dated room equipment support everyday life of the residents. Ocean views from the Eastside units include Odaiba, Rainbow Bridge, and Tokyo Bay, and City views from the Westside units include Tokyo Tower and Cityscape of Tokyo, which adds color to the living space. The area is located in one of the Tokyo's most active commercial and business districts of Shinbashi and Shiodome, and is surrounded by many restaurants and shopping places. Good transportation access and convenience for life make your high class urban life enjoyable.

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Exterior of SHIROKANE The SKY
Sale Property tag
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Exterior of Grand Hills Ebisu
Sale Property tag
Grand Hills Ebisu

Grand Hills Ebisu is a large-scale tower condominium with a total of 310 units, 23 floors above ground and 2 floors below ground, completed in March 2019. Many trees around the condominium add seasonal color and create a pleasant atmosphere. The building has a 24-hour manned management system, a 24-hour security system, a triple security system of auto-locks linked to intercoms with color monitors and security cameras, and a reliable security system. The common corridor is a hotel-like interior corridor, and concierge service supports comfortable living. A party room and an owner's suite for guests are also available, creating a high quality common space. The nearest station to Grand Hills Ebisu is Ebisu Station on the JR Yamanote and Saikyo lines, a 7-minute walk away. Ebisu Station on the Tokyo Metro Hibiya Line is a 9-minute walk away.

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