Part 10/15:
With the market in free fall, some have proposed renting instead of buying as a safer alternative. However, experts caution that even renting bears costs—such as monthly mortgage-like payments if one finances property through a bank loan. Illustrations show that a 30-year loan for 1 million yen can cost over 4,200 yen monthly, with total interest surpassing the principal, ultimately equating to paying rent to the bank.
Many outside China’s first-tier cities are choosing to rent as a strategy to avoid debt burdens and economic risks. Some suggest that renting offers flexibility and less financial stress, especially when property values are unpredictable. Yet, the question remains whether this truly safeguards residents from economic hardship or merely postpones deeper financial woes.