Monday, October 12, 2015

Challenging environment of housing in the UK and Japan

London is well known as expensive tenancy fee. I was surprised to the high cost of housing when reached London. In addition to strong GBP, it was so expensive that I had to save money with several ways in London life.

Before going to the UK, someone made a joke that I should rather buy the property in London than rent it. It is no more a joke at least in some areas in the UK. Buying a flat is cheaper than renting in a third of Britain’s towns and cities.

The Guardian: Homebuyers pay less than renters in a third of UK towns and cities

According to Zoopla, a major housing agent, paying off a mortgage works out cheaper in 36% of cities. For example, buyers who had raised a 10% deposit have to pay only 447 GBP a month, whereas the average renting fee is 596 BGP.

In London, buying a flat is still more expensive than renting it. However, buying a flat in London is terribly costly so that it is affordable for only people with the highest level of income. Furthermore, the housing cost is rapidly increasing in London. My landlord was also planning to sell the flat I had stayed for the higher price.

My past entry: World wealth report

Nowadays, the idea that renting a house is an inferior option seems dominant in the UK. Some of my friends living in the UK had bought a nice house. However, it is entirely unfeasible for poor people. It will expand the inequality among citizens.

My pastt entry: Poor door in flats in London

There is a presupposition that the house is never broken when owning a house is encouraged. Traditional British houses are made from stone. So they are invulnerable even aged. Also, there is a rare risk of encountering natural disasters in the UK.

In contrast, Japan is frequently struck by the earthquake. Typhoon is also a terror. There are only a few traditional Japanese houses made from wood and paper remained. Modern houses are quite strongly built. Nonetheless, they can be damaged by soil liquefaction by the earthquake.

Japanese house is said to lose its value by 30% as soon as you buy it. Therefore, I am indifferent to owning a house in Japan. Rather, I would like to get a flat, or a castle in Europe.

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