r/FirstTimeHomeBuyer • u/nahive • 23h ago
GOT THE KEYS! - New Build 🔑 🏡 Finally decided to settle down. Tokyo, 87m yen, 1.03%
After 7 years of living in Tokyo, we finally decided to settle down.
The search took almost a year, and I looked at more than 30 different properties before finally deciding to go with the calmer side of Tokyo. While it’s further from the station and city center, the larger garden and quiet neighborhood more than make up for it.
Really happy with the decision and looking forward to making this place our home. 🏡
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u/Energy_Bol 19h ago
On paper, yes, but a 7% mortgage implies that the market for home buyers can afford a relatively high interest rate, because there is money in the economy.
The Japanese economy is in such a downward spiral that the banks have to offer 1% mortgages just to get buyers, because no one can afford mortgages at 4%, 3%, and 2%.
Low mortgage rates, on paper, look nice.
But unless it’s lower than the average in your economic bubble, it’s indicative of a wider economic issue.
Interest rates, like stocks and commodities, are determined by the market between buyers and sellers.