Learn how turning rent money into property assets can help foreign residents in Japan secure stability, lower future costs, and build a safer retirement.

Why do ancient money books talk about buying a home?

Did you know a book written almost 100 years ago already taught that owning a home is a way to build wealth? The book The Richest Man in Babylon by George S. Clason is a classic guide on money management.

Through stories set in ancient Babylon, the author shares principles on how to save money, manage funds, and build assets. One of these lessons is very important for us living in Japan:

“Make thy dwelling a profitable investment.”

Should you pay rent or build assets in Japan?

Imagine two families living in Japan who pay 90,000 yen every month for a chintai (rental property). The first family pays this amount every month to the landlord. After 20 years, they will pay about 21.6 million yen only for rent, and they will own nothing.

The second family decides to buy a house with a low-interest bank loan. They also pay about 90,000 yen per month, but with a big difference: part of this payment helps pay down the loan for a house that belongs to their own family.

As years pass, the remaining loan goes down and the family grows their assets. Buying a house also means paying interest, taxes, insurance, and maintenance. Still, when planned well, the money spent on housing every month is no longer lost.

Does owning a home bring safety for retirement?

Many foreign residents work for decades in Japan, but they do not know their exact financial situation after retirement. How much money will they get from the Japanese pension system? Will it be enough for rent, food, and medical bills?

Imagine reaching age 65 or 70 and still needing to pay 90,000 yen in rent every month. This is more than 1 million yen a year. Now imagine another situation: a family buys a house at age 35 and finishes paying the loan before age 65.

When they retire, they do not need to pay rent or loan payments anymore. They will still pay taxes and maintenance, but their monthly cost will be much lower. This makes a huge difference when income goes down.

What is the difference between income and assets?

A big lesson from The Richest Man in Babylon is that making a lot of money does not always mean being rich. A person can get a very good salary and still reach retirement with zero assets.

On the other hand, someone with a smaller income can build a strong financial life over the years if they manage money well. Income is the money we get from our work; assets are what we are able to save and keep.

Owning a home can be part of these assets, giving stability and a property to pass on to your children. But remember: buying a house must fit the family budget without taking on too much debt.

Conclusion: what can we learn for our life in Japan?

For foreign residents who plan to live in Japan for many years, it is smart to think about buying a home. This does not mean buying is always better than renting for every single person, but we should not look only at today’s loan payment.

We need to think about the assets we want to build and the life we want to have 20 or 30 years from now. After all, working hard every day just to pay bills is not enough; part of our work must help us stay safe in the future.

If you want to understand how home loans work and if buying a house fits your budget in Japan, talk to Ji Consulting. We offer support in English (LINE or WhatsApp). Our team offers complete support to help you plan your future safely.

We operate in AICHI-KEN, SHIZUOKA-KEN, MIE-KEN, GIFU-KEN, SHIGA-KEN, KYOTO, OSAKA, FUKUI-KEN, ISHIKAWA-KEN, TOYAMA-KEN, NAGANO-KEN, YAMANASHI-KEN, KANAGAWA-KEN, TOKYO, SAITAMA-KEN, CHIBA-KEN, IBARAKI-KEN, GUNMA-KEN, TOCHIGI-KEN, strictly for buying or selling properties.