Changing due to rising interest rates!? How to think about “home ownership” vs. “renting”

<Delivered on June 19, 2026>

(You can read this in about a minute and a half)
Hello. This is the MyFP newsletter team.
The Bank of Japan recently raised its policy interest rate to around 1.0%.
This is the highest level in about 30 years, and it is said that
interest rate hikes may continue in the future.
When policy interest rates rise, mortgage interest rates also
tend to rise, and variable rate mortgages in particular are easily affected directly.

Also, prices for food and daily necessities continue to rise.
We are truly entering an era where

“prices are rising” and “interest rates are rising.”

◆ Is home ownership a loss? Is renting a gain?

Now that we have entered an era with interest rates,

“If mortgage rates are going up, should I buy sooner?”
“Wouldn’t it be better to rent from now on?”

We are receiving more consultations like these.
However, it is actually not that simple.

If you rent,
there is the anxiety that “the rent might go up every time you renew.”
On the other hand, if you own a home,

there are other worries such as:
“management fees and repair reserve funds will go up”
“there is no guarantee that children will inherit the house in the future”
“will I be able to sell or manage it in my old age?”
Recently, I have also seen news that the demand for services

that handle “closing up the family home” is increasing.
In other words,

both home ownership and renting have pros and cons,
and it is not a problem that can be judged solely by mortgage interest rates.
Rather,

instead of “which is more profitable,”
it is important to think about “which fits our lives better.”

◆ What you should really think about

Customers sometimes ask me,

“Should I buy a house?”
“Which is more profitable, owning a home or renting?”

However, what is truly important is

not which is more profitable, but which fits your own
values and lifestyle.
For example,

– Current household financial situation and savings
– Possibility of job transfers or changing jobs
– Educational policy for children
– How you want to live in your old age
– Whether you want to live in the same area for a long time
The optimal choice changes depending on these factors.
Buying a home is not just about “choosing real estate,” but

a choice that determines “how you want to live your life from now on.”

◆ Things to think about in an era of rising interest rates

In an era of low interest rates,
the idea that “it’s fine as long as you borrow for now”
might have held up.

However, from now on, both mortgage rates and rents may rise.

That is why it is important,
before debating whether to own or rent,
to check if “your overall household finances are sustainable.”
And,

instead of “what is the general consensus,”
to think about “what do we want to do.”

◆ Summary

We cannot control prices or interest rates.
However,
☑ The budget for housing
☑ Household management
☑ Asset formation for the future
are things you can control yourself.

There is no correct answer to the debate of
“owning a home vs. renting.”
What is important is
not general theories or profit and loss, but whether you are making a choice that
fits your own life plan.

If you are unsure, why not try thinking about it from both the perspective of your life plan and
your household finances?

Whether you are considering buying a home,
or thinking about continuing to live in a rental,
please start by organizing what kind of life you and your family
are hoping for.
Thank you for reading.
This newsletter is scheduled to be delivered every Friday.
Look forward to the next one!

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