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This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.Episode 35: Boost your quality of life with real estate management!I would like to send you the contents.

Today's topic is an answer to a question I often get from clients: "After purchasing income-generating real estate, can I buy a home?"

About home loans

When I consult with people who are just starting to study real estate management, I get asked this question a lot.

Certainly, since both of these purchases are based on the assumption that they will be made on a loan, I think this is a fundamental but very important question.

To put it simply, the honest answer is, "There are cases where it is possible to purchase it, and cases where it is not."

In the past, even if you had an income-earning portion of a loan, there was a "safety net for purchasing a home" called Flat 35.
The reason why this safety net was possible is that before the system was revised in April 2020, loans for income-generating real estate and home loans were completely separate.

Even if a person had an existing loan, only the amount of loan repayment from Flat 35 was considered for the purpose of calculating the repayment ratio, so those with an annual income of less than 4 million yen could take out a home loan with a repayment ratio of up to 30%, and those with an annual income of 4 million yen or more could take out a home loan with a repayment ratio of up to 35%.

However, after the system was revised, the calculation was changed to include the annual repayment amount of all loans, and the screening process has become stricter if there is a pre-existing loan for income-generating real estate.

One thing to note is that, under this calculation, income-generating apartment building loans are not included in the annual repayment amount, so after the system reform, only income-generating condominium units are included.

Can I buy a home after buying a property?

Now, let's get back to our topic.

When looking at websites that discuss this topic, you will find both recommendations to "buy an investment property first and then buy a home" and statements that say, "If you don't buy a home first, you won't be able to buy one after you buy an investment property."

This can also be considered a kind of position statement, and neither answer is absolutely correct.

Since loans involve screening, there is no doubt that the two will affect each other regardless of which comes first.

The annual income multiplier for home loans is set lower than that for income, and rental income is also taken into account in annual income during mortgage applications, so the argument that it is better to buy income first is not broadly incorrect.

However, even if the calculations show that you will be able to purchase a home later, it is still not 100% certain.
The important thing is to consider your life cycle, career, and family as a whole and decide which to prioritize.

The goal of a real estate salesperson is to sell the product in front of them.
Unless they are 100% lying, they will confidently say, "You can still buy a home even after buying an investment apartment!"

If you take this at face value and end up not being able to move in with your family, or your plans to move to a bigger house and take your mother back to her parents' home fall through, the sales person will not take responsibility.

Thinking logically and determining which is more important to your life will ultimately lead to the most satisfying purchase.

Learn about real estate management

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