In the United States, your home value most definitely counts as part of your overall net worth for most people (and for some, it’s the only part).
In Japan, does it even make sense to count it within your net worth at all? Japanese people tend to see houses as rapidly depreciating assets (or even literally worthless after a certain amount of time). Land value may go up in select cities, but in the countryside like where I live, it decreases yearly. And I don’t want to say it, but our practically beachfront home will disappear instantly should the big one ever come (and a lot of Japanese people I know around me have pretty much accepted that possibility- tsunami insurance starts at 100,000 yen a month, so it’s not like anyone’s insuring with it…)
But then when I read Americans in America talk about their net worth, I feel hopelessly far behind (but because I am not including the value of my used but paid off house in my own numbers like they are). What do you think? Does it make sense to include your home in your net worth in Japan (especially if you intend on living in it for life, without ever selling it?)
by gyoran_no_kaze