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Newly Wed Buying a House 2008/3/11 13:59
I just got married, recently and we are thinking about buying a house together. After shopping around, we found the house that we like, and working to get the loan. But as we discuss how much down payment we want to do, my wife wants me to sign a paper stating how much she is putting down on the house, and what we will do if we split up, ect. It sounds to me like a prenuptial (or post in this case)agreement. But she said that this is because of the tax law...the Japanese government can consider this as a gift/inheritance and charge the tax. Is this correct?
by JJDC  

... 2008/3/12 14:24
That is correct, but that's just part of the story.

Buying a house (instead of renting it) is really time/energy-consuming and very stressful considering all the paperwork, going back and forth offices and talking to people. Also it's usually almost compulsory to apply for insurance so that the loan would be covered once the payer dies, because what you're facing is usually a 35 years loan payment. Buying a house in Japan is really a life-span thing.

Another thing is that, they say that the third house you buy will finally be your ideal house, meaning that when you're not used to living together and the lifestyles you're about to face, you don't know how to design your house and therefore tend to make mistakes. I find this is true from my personal experiences.

For these reasons, newlyweds usually don't buy a house. They rent an apartment or small condo, and when they finally find out how many children and what kind of lifestyle they're going to end up with (moreover which country you'll live in for the rest of your life), they dare to purchase a house.

So since you've just got married and don't know each other well as spouses, it sounds practical to me that you're making an agreement on paper. Of course it sounds really bleak, but that is another story.
by Uco rate this post as useful

just making sure 2008/3/12 14:29
When you said "Is this correct?" I thought you were asking if it is correct that you should seriously consider about taxes.

If you're asking if it is customary for couples to make that kind of written agreement, the answer is "No, because newlyweds usually don't buy houses. But often they buy a house and end up getting in a mess later when they get divorced".
by Uco rate this post as useful

prenuptial 2008/3/12 14:37
Go with your gut feeling,
It sounds like a prenuptial agreement to me, she is protecting her share of the money .
Have to remember it is difficult to have a joint bank account plus jointly holding a mortgage (loan) and title on the house so i think she is protecting her share of the investment by signing some agreement.
Anyway thats my take on it, could be wrong.
Good Luck
by Steve rate this post as useful

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