Saturday, March 26, 2011

Why is it expensive to live in Japan?

Question:


If the country is experiencing deflation and long-term economic decline, then shouldn't it be cheaper to stay/live there? Specifically as a foreigner.

I don't have much of an understanding of economics so bear with me if this is a stupid question :p

Answer:


The rent is too high. That is because land remains rated too high despite the fact that depreciation should also be applied to the value of land, seeing as the economy is doing this bad. That's all for the protection of banks, which possess lots of land as collateral.

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