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It also fails to mention the actual reason why the houses have been “affordable” for Japanese people. The banks give out 30 year mortgages on very low rates which you can deduct from your income tax [1], without requiring a big deposit.

[１] https://japanpropertycentral.com/real-estate-faq/home-loan-t...

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Generous loans increase buying power and, in the absence of elastic supply, would result in rising prices that keep housing expensive. The wonder is that you can buy a new construction 3-story 3 bed/2 bath house 5 minutes from Sugamo station for $550k, despite the mortgages being so generous. (Source: the flyer that a real estate agent handed to me in the street last night).

Note that most rates for loans are variable in Japan. Over 30 years thats a fairly big risk nowadays.

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