For those considering a trade-up
Trade-ups come with many benefits.
Now is a great time to trade up!
The current real-estate market
In 2008, the collapse of a US investment bank triggered a global financial crisis. Japan's real-estate market, previously flat, has been rising ever since 2012 — supported by the yen weakness that followed the Japan–US interest-rate gap, and by growing inflows from overseas investors. Prices in central Tokyo remain particularly firm.
Five benefits
Low interest rates
Low rates continue even after the zero-rate era
Depending on your circumstances, a typical salaried employee can consider variable-rate mortgages at around 1.0–1.5% today.
Group credit life insurance overhaul
Beyond standard cover (mainly for death), riders now cover cancer, stroke, heart attack and other risks.
Mortgage tax deduction
Deduction extended by 5 years
Loan limits for existing-home purchases have been raised, with additional allowances for households raising children.
Capital-gains special deduction
Up to 30 million JPY tax-free
The taxable capital gain on selling your home is exempt up to 30 million JPY.
Longer repayment terms
Up to 50-year repayment
Banks are extending maximum terms from 35 to 40, 45, or 50 years, making it easier to design comfortable repayment schedules.
Actual customer case studies
Used the 30M JPY special deduction
Case: lower monthly payment, larger home Ms. K, Shinagawa-ku
「A family of five — our previous condo felt too small, so we were looking for something larger.」
1. Property sold
Built 2015, Used condominium
Purchase price 5,580 ×10,000 JPY
Exclusive area 67㎡ (3LDK)
• Mortgage payment: 140,000 JPY / month
• Management fee etc.: 30,000 JPY / month
• Parking: 25,000 JPY / month
Total 19.5 ×10,000 JPY / month
Sold 2024, 9 years old
Sold at 7,580 ×10,000 JPY
After paying off remaining loan & brokerage fee
Net proceeds ≈ 3,000 ×10,000 JPY
2. Property purchased
New house in Shinagawa-ku
Price 9,700 ×10,000 JPY
Land area 60㎡
Building area 100㎡ (4LDK + garage)
↓ Part of net proceeds (25M JPY) applied
Loan amount 7,200 ×10,000 JPY
Mortgage payment 18.2 ×10,000 JPY / month
3. Result
Built 2015, Used condominium
Total 19.5 ×10,000 JPY / month
67㎡ 3LDK
Cheaper
Larger
New house in Shinagawa-ku
18.2 ×10,000 JPY / month
100㎡ 4LDK + garage
Their monthly payment went down, and they moved into a larger home.
Used the 30M JPY special deduction
Case: lower monthly payment, larger home Mr. T, Bunkyo-ku
「A new baby meant our previous home was too tight — we were considering trading up.」
1. Property sold
Built 2018, Used condominium
Purchase price 7,450 ×10,000 JPY
Exclusive area 57㎡ (2LDK)
• Mortgage payment: 190,000 JPY / month
• Management fee etc.: 24,000 JPY / month
Total 21.4 ×10,000 JPY / month
Sold 2024, 6 years old
Sold at 11,900 ×10,000 JPY
After paying off remaining loan & brokerage fee
Net proceeds ≈ 4,000 ×10,000 JPY
2. Property purchased
Land in Bunkyo-ku
Price Land 74.8M JPY + Building 33M JPY ×10,000 JPY
Land area 50㎡
Building area 90㎡ (3LDK)
↓ Part of net proceeds (33M JPY) applied
Loan amount 7,480 ×10,000 JPY
Mortgage payment 19 ×10,000 JPY / month
3. Result
Built 2018, Used condominium
Total 21.4 ×10,000 JPY / month
57㎡ 2LDK
Cheaper
Larger
Land in Bunkyo-ku
19 ×10,000 JPY / month
90㎡ 3LDK
Their monthly payment went down, and they moved into a larger home.
Used the mortgage tax deduction
Case: modest increase in monthly, but larger home plus cash on hand Ms. A, Suginami-ku
「Our three children were growing up, so we wanted to trade up to a larger place.」
1. Property sold
Built 2017, Used condominium
Purchase price 6,600 ×10,000 JPY
Exclusive area 68㎡ (3LDK)
• Mortgage payment: 170,000 JPY / month
• Management fee etc.: 27,000 JPY / month
• Parking: 21,000 JPY / month
Total 21.8 ×10,000 JPY / month
Sold 2023, 6 years old
Sold at 7,580 ×10,000 JPY
After paying off remaining loan & brokerage fee
Net proceeds ≈ 1,500 ×10,000 JPY
2. Property purchased
New house in Suginami-ku
Price 8,980 ×10,000 JPY
Land area 60㎡
Building area 110㎡ (3LDK)
↓ Used the mortgage tax deduction
Loan amount 8,980 ×10,000 JPY
Mortgage payment 23 ×10,000 JPY / month
3. Result
Built 2017, Used condominium
Total 21.8 ×10,000 JPY / month
68㎡ 3LDK
+ ~10,000 JPY
Larger
New house in Suginami-ku
23 ×10,000 JPY / month
110㎡ 3LDK
Their monthly payment barely rose — they moved into a larger home and kept 15 million JPY of cash on hand. On top of that, they receive the 13-year mortgage-deduction benefit.
Wondering if trading up from your current home would pay off? Talk to us any time.
Felia Home offers free trade-up consultations. Whether you are already considering a trade-up or just starting to think about it, please feel free to get in touch.
Enquire about trading up