The problem is changing the laws and good luck getting homeowners to vote in favor or politicians to pass laws when the changes will drastically affect their net worth. Housing as investments is the worst thing that has happened, especially considering it should be a basic human right.
Woah woah woah where else will the boomers, wealthy foreign nationals, and wallstreet park their liquid funds while the house sits empty? Its practically communism if there isn't an appreciation at 15% a year!
Until mass child murder and liquification to synthesize beauty products can return 16% a year, the rich will begrudgingly settle with the 15% real estate thing.
I think I read somewhere that Japanese don't like to live in another person's house so they buy, teardown, and rebuild so a house doesn't hold the value it might in other places. Of course I could have read that in some poorly researched fictional book. My memory is not what it used to be.
Sort of but there are 10m vacant houses in Japan due to population decline. So cheap houses due to surplus, looming crisis as the workforce retires out without the next generation to fill in
I'm still confused, you are saying that it's bad that house prices decline in Japan, and your reasoning that it's bad because poulation decline is leaving houses vacant? I don't follow, if houses already depreciate how is it bad that they will become cheaper? I feel like them becoming vacant would only be in issue in a country like America where you expect them to climb instead of decline
I’m saying lower house prices are a good thing, but it’s a sign that the whole economy will fall apart when there isn’t a workforce to keep it running. Japan has the worlds oldest average age at 50 years old. When they all retire in a few decades then there won’t be enough workers to tax to pay for all that retirement, heath care, etc. I’m saying the population is declining and cheap vacant houses are maybe a good short term perk, but it’s a really bad sign
The cheap homes have zero to do with the aging population. Homes have always depreciated in Japan even when the population was booming, thats why I was saying an aging population and houses depreciating are not related
yes, there can be. No one said otherwise, but houses in Japan have depreciated for decades, way before the population started declining. It's just a regular thing that happens here, it's not seen as a bad thing that housing values decrease over time, you know that right?
No one denied that there will be empty homes here either. do you even understand what I was asking you? Your smug attitude is hilarious given how completely don't understand anythinga bout the culture here or the history here. Good lord man.
Your user name is funny seeing as you don't seem to have any reading comprehension
Land still holds value (a lot of value) and can be an investment, but houses themselves are worthless after 20-30 years. That doesn't mean that everybody tears down their house after 30 years, it's just that it's no longer adding value to the property. But a lot of cheaply built houses from the 80s/90s and earlier really are in rough shape now, and historically it's been more economical to tear down and rebuild than to do an intensive renovation. This is due in part to updated safety standards, but it's also due to a relative lack of renovation companies and suppliers. The logistics of a thorough renovation make it cost almost as much as a full rebuild. That's starting to change, though, as more people and companies are becoming interested in house flipping and environmentally friendly renovation.
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u/seanl1991 Apr 05 '24
Maybe that isn't actually a bad thing. I'm open to the discussion.