Buying a home in Japan changes rent money into a long-term investment. It brings stability for your old age and builds solid wealth for your family.

Why do we recommend buying a home?

Did you know a book written about 100 years ago already taught that owning a home brings wealth? The book ‘The Richest Man in Babylon’ by George S. Clason is a famous guide on how to build wealth. Through stories set in ancient Babylon, it teaches how to save money, grow money, and live a rich life.

One interesting lesson in the book is to make your home a profitable investment. This is one of the seven cures for a lean purse. Why does owning a home lead to wealth? Let us think about this for our daily life in Japan today.

1. Paying rent forever versus building assets

For example, imagine two families who pay about 90,000 yen each month for housing. The first family lives in a rental home (*shakuya*). Paying 90,000 yen every month, the total cost in 20 years will be 21.6 million yen. In the end, this money does not become your own property.

The second family chose to buy a home using a housing loan. Even if the monthly payment is similar, the payments include the principal, which makes the debt smaller over time. Part of the monthly money helps build your family assets. Of course, costs like property tax (*kotei shisan zei*) and maintenance must be checked, but the financial difference is big in the long run.

2. Why is owning a home important for safety in old age?

When we think about the future, housing is very important. We cannot work forever, and having low fixed costs in retirement is essential. If you still need to pay 90,000 yen for rent at age 70, the burden on your budget will be very heavy.

On the other hand, if you buy a home early and finish paying your loan before old age, you remove the biggest fixed cost from your monthly budget. Your home becomes more than just a place to live; it becomes a safe base for your financial future.

3. Income versus assets: What is true wealth?

One of the best lessons in the book is that high income is not the same as being rich. A person who earns well but spends everything does not save assets. On the other hand, a person who plans expenses can build solid assets over time.

A house is one of these assets. Of course, you must check your remaining loan balance to know your true net worth, but buying a home with a plan brings stability, peace of mind for your family, and a legacy for your children. However, it is very important not to buy a house that is too expensive so the monthly payment does not hurt your budget.

Conclusion

The classic book ‘The Richest Man in Babylon’ reminds us that how we use money is as important as how hard we work to earn it. The choice between paying rent or buying a home depends on each family, but for those who want to plant deep roots in Japan, buying a home is a big step.

If you have questions about how to plan to buy a home or want to check if your visa and income allow you to get a loan in Japan, trust the experience of Ji Consulting. We offer support in English (LINE or WhatsApp). Contact our team today.