The reason for the weak yen is the difference in interest rates

The weak yen and strong dollar also have a direct impact
Affects the price of apartments
It is not something like that.

Imported materials that are settled in dollars are
The price will be high when the yen is weak,
This will not be passed on to the apartment prices.
Because there isn't.
However, the current historic depreciation of the yen
One of the main reasons cited is the interest rate differential between Japan and the United States.

The United States, the EU, and Australia are trying to curb inflation.
In order to achieve this, the Bank of Japan has been raising its policy interest rates one after another.
Japan's policy interest rate remains unchanged.

This has kept interest rates low for a long period of time.
For Japan, changes in interest rate policy will have a major impact on the economy.
To have a huge impact,
This is because they are reluctant to raise interest rates.
However, if things continue as they are, the weak yen will be the cause of
Inflation is unstoppable.
Regarding the increase in policy interest rates,
It might be up for debate.

How rising interest rates affect loan payments

The change in the policy interest rate is a
Not only the loan interest rate,
It also impacts mortgage interest rates.

Current mortgage interest rates: fixed and variable
Although low interest rates are set,
A small increase in interest rates can affect your mortgage payments
It has a significant impact.

Let’s say you have a 40 million yen, 35-year mortgage.
In the case of fixed, equal principal and interest repayments,
Even if the mortgage interest rate rises from 2% to 2.3%,
The monthly repayment amount is between 133,000 yen and 139,000 yen.
The total repayment amount is about 6,000 yen increase.
From 55.66 million yen to 58.28 million yen
This will be an increase of 2.5 million yen.

The repayment period is long, so the difference in interest rates is small.
It will have a big impact.

Things to consider when buying a condo now

Considering only the price of the apartment,
Because it is quite expensive, it is often thought that it is time to hold back.
Actual mortgage payment amount and tax reduction measures, etc.
When you think about it overall, you can see some good buys.
But you need to be careful about the interest rate.
Even a small increase in interest rates can affect your monthly repayments
This will have a big impact on your chances of success, so you should consider whether to go for a fixed interest rate or
Think carefully about whether to choose a variable interest rate.

Consider interest rates, tax reduction measures, etc. comprehensively

Take out a mortgage to buy an apartment
For those who are looking to buy, the price of an apartment
That in itself is important, but
Interest rates, repayment periods, mortgage tax reductions, etc.
Putting it all together, calculate your actual expenses
It's important to try it.

Even though the current apartment market is at a high level,
The reason why there are so many buyers is because loan interest rates are low,
The main reason is that the monthly repayment burden is light.
While interest rates remain low, it's a good time to buy an apartment.
I'm sure many people are thinking about this.
In addition, the mortgage tax reduction will be extended until Reiwa 7.
This has also been a tailwind.
The deduction rate has been reduced to 0.7%.
, the upper limit of annual income will be reduced to 20 million yen, etc.
Although there have been some changes to the system, it is still attractive.
Because it is a tax reduction system,
If you are eligible, there is no reason not to use it.

Choosing between fixed and variable interest rates

However, when it comes to interest rates when taking out a mortgage,
Should you choose a fixed or variable interest rate?
It's a big problem.
Until now, low interest rates have continued for a long period of time,
I don't think interest rates will rise any time soon,
I think many people choose the variable interest rate option.

However, interest rates are rising around the world.
Among the many countries that have taken steps to implement the plan, Japan is the only one that is close to zero.
There is no guarantee that the policy interest rate will be maintained going forward.
If you choose a variable interest rate, the interest rate will rise
This will directly affect your monthly payments.
You should carefully consider which one to choose.

Consider the economic situation and decide when to buy an apartment

Economic conditions also impact the condo market
For greater impact, in the news every day
Some buyers may be sensitive about this.
By comparing prices over a long span,
What is the current price of an apartment?
It’s important to determine the level.

However, just because the apartment market price is high,
Generally speaking, it is time to refrain from buying.
It's too early to judge.
Interest rate trends and mortgage tax reductions also affect monthly payments
These factors will have an impact on the
It's a good idea to decide when to buy.