Name: How an Average Family in Tokyo Can Buy a New Home
Uploaded: 2020-03-19T17:24:12.000Z
Duration: 11 min 57 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

[G] In Tokyo, you can buy a brand new single detached home for about 300,000 US dollars

Modal verbs - B1

you might ask, how is this possible in the city that in 2016, Monocle declared the most liveable city

I know, i know, Monocle is a British lifestyle magazine

Not the UN Human Development Index, where Japan ranks 20th

But still, I feel safe in saying that Tokyo is a major world city

and I think a lot of people would be surprised that a new detached home can be in reach for the average family.

So I'm going to get to that housing story, but first I have to sidetrack a bit and to find a few things

This video will be about buying a new home in Tokyo, a city in Japan. It is important to distinguish this

because there is also the prefecture of Tokyo or Tokyo metropolis. A prefecture is like a state or province

Also equally important to distinguish is that we're not talking about the Tokyo metropolitan area,

which includes multiple prefectures and cities

Nope, that's not the Tokyo we're talking about either. We are talking about the 23 special wards of Tokyo

In English, the wards call themselves cities, but they're closer in terms of function to what a

In any case, the specific ward within Tokyo, I'll be looking at today

Sidenote, Edo is the old name of the city of Tokyo and Gawa means river.

So the ward name literally translates into Edo River.

Edogawa city is on the eastern edge of Tokyo

If you go any further and across the Edogawa River

you'll find yourself in the prefecture of Chiba.

Now you might be thinking, okay, so this place is on the outskirts of Tokyo

Well now not really. It's a 34 minute train ride from Mizue Station to Shinsen-Shinjuku Station

which is at the heart of the Shinjuku, the major government and business district in Tokyo.

It's a 14 minute train ride from Kasai Station to the literal heart of Tokyo, Nihombashi Station.

Nihom means Japan and Bashi means bridge, so the name directly translates into Japan Bridge.

and it's the point from which all distances to the capital are measured.

My point with the map and distances is that depending on where you live in Edogawa

and where you want to go in Tokyo, you can be anywhere from a 15 to 16 minute train ride away

Even though Edogawa is on the eastern edge, you're still very close to the thick of things in Tokyo

and yes you can go out to the boonies in the prefecture of Tokyo, like when I visited Okutama in the far west.

Even though we could easily get to more popular parts of Tokyo from Edogawa

Edogawa is still a populous area with all the amenities you could want

You don't need to own a car, besides commuting to work, you don't really need to leave the area if you don't want to.

To get an idea of the density of Edogawa, the population is roughly 700,000, all living in 49 square kilometres.

That's 13,750 people per square kilometre, to compare, The Bronx, a borough in New York

has 13,231 people per square kilometre. Although I've never been to The Bronx

and can't compare the feel of the neighbourhoods, on paper the density as well as the proximity

So what does the housing look like? Let's go on a quick tour

Right now we are looking at homes that are 30 to 50 years old

most of these homes no longer have any value, so if an owner were to sell

they'd most likely be bulldozed and rebuilt.

Accordingly, it's quite common to witness demolition scenes like this.

Once the homes are demolished, new ones are put in their place

and it's not uncommon for two houses to be built where there use to be one.

And here's what some recently built housing looks like

Some called these "pencil" homes, as they're tall and skinny

not all of them are pencil shaped though. In addition to single family homes

there are a couple main kinds of multi-family housing, these are called apartos, which come from the word apartment.

They're generally 2 or 3 storey units, built of wood and they would normally be rented by singles or couples.

When people talk about cheap Japanese housing with paper thin walls

I think this is usually the type of buildings they're referring to.

and despite the grand name, they're apartment buildings made with reinforced concrete.

They're are generally 3 or more stories and the units will be bigger than the apartos and thus be better suited for families.

Some of these buildings will be for rental, while others will be condos that are owned by individuals.

Some mansions are also owned by the city and used for affordable rental housing

you often see many of these buildings clustered together.

A dead giveaway is that if you see numbers on the sides of the buildings.

You might find yourself wondering, is the housing really affordable for the average earner in Japan

One thing you need to know is that in the past 25 years, Japan has grown in population by about 3 percent.

Whereas countries like the US and Canada have grown around 30 percent.

After the bubble burst in Japan in the early 90's, land prices never recovered to their formal peaks.

It's been expected that owning a house is not an investment but a depreciating asset.

In recent years, pricing has levelled out and even grown in Tokyo

but with the population of Tokyo set to decline in the future

property growth is far away from being certain.

Despite the precipitous drop in housing prices after the bubble

For example, this plot of land in Edogawa is roughly worth 3 thousand dollars a square metre

Where I used to live in Burnaby, a city in metro Vancouver

It's about 2 thousand 5 hundred a square metre, so fairly comparable.

However, since lot sizes in Burnaby can be from 5 to 10 times the size of those in Edogawa

the density in Burnaby is only 2,464 people per square kilometre.

Edogawa is 5 times as dense, which is a big reason why homes in Edogawa can be in reach for the average household.

If you want a single detached house where I used to live

A tricky part when talking about affordable, is that you need to define exactly who it's affordable for.

The median annual household income in Japan is 37 thousand dollars

in comparison, it's 41 thousand in Canada and 44 thousand in the US.

By the way, this median stat means that half the families make more than that amount, and half make less.

Now that 37 thousand dollar number is for the whole of Japan. In Edogawa, it's 43 thousand. What can a family making that afford?

The maximum borrowable amount, with no down deposit, is about 300 thousand dollars

with 15 percent down, that number bumps up to 350 thousand dollars.

On the really cheap and small end for new single detached housing, you can get in for a bit over 200 thousand dollars.

However, I'd say a low end is more like 300 thousand, with mid-range going for about 400 thousand.

Custom and/or concrete housing will most likely be over 500 thousand.

The biggest factor in home pricing is almost always the land

but of course that really depends on the location.

Beyond the sticker price, the real cost of a home includes the interest that you'll pay on a mortgage over the years.

Interest rates are always changing, but let me say that

you can rather easily get a variable rate of 1 percent in Japan right now.