Warning: Tax saving's rental housing is mushrooming. Do not lose your money.
Despite the fact of the decline population, the government has been encouraging
to build a new house and condominium,
since a high economic effect, which includes the constructionand real estate
industries. As priming, Japanese government
offered tax breaks of an incentive of tax, including inheritance tax, mortgage.
These incentive packages led a great promotion
to build a rental house or condominium, without pay attention to the actual
demand.
As a result, there were 8.2 million vacant houses in 2013. In Tokyo, a
building boom for a rental purpose is still underway,
as of November 2015, although the fact that an empty room has been increasing
steadily.
Japan is now in the era of population decline.
Population distribution chart by age, in 2015 and 2060 prediction in Tokyo
Crisis emerged that both Tookyo and localities will fall in population
together and became short of tax revenue.
Picture source: NHK September 25, 2016
The Bank of Japan 日本銀行
“賃貸バブル”への警戒強める
The movements to build and purchase rental-housing as a part of investment
have been very active for the purpose saving taxes,
since it became easy to borrow funds due to the large decline in interest
rates due to the negative interest rate policy by the
central bank. However, in Tokyo and many other cities, vacancy rate of
rental property ( houses, rooms and offices ) has been
increasing in the significant degree. The bank of Japan now warns of the
occurrence of the 'rental-bubble.'
日本語版: 節税賃貸住宅が乱立、空室率が上昇、経営リスクが増大
住宅ローン膨張220兆円 金利上昇にリスク
Do not be misled by rental housing investment
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The article was written by Junhaku miyamoto, PHD. in 2017.
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