As the number of dual-income households increases, demand is rising for "two-generation homes," which can provide valuable support with childcare. However, the budget varies significantly depending on the type of home. In this article, we explain sample floor plans by budget range and how to build a sound financing plan for a two-generation home.
What kinds of floor plans are possible at each budget level for a two-generation home?
Two-generation homes fall into three types: "fully separated," "partially shared," and "fully shared," and the type you choose has a major impact on the budget.
JPY 10 million range: mainly fully shared homes
If the lot area is 30 tsubo, construction is possible, but separating the equipment and utilities is difficult from a budget standpoint, so fully shared homes are often the practical choice.
JPY 20 million range: partially shared homes become realistic
At this level, households are more likely to choose either a fully shared or partially shared layout. Privacy can be maintained through measures such as installing a mini-kitchen for the younger household or separating wet areas by floor.
JPY 30 million range: fully separated homes also come into view
While partially shared homes remain the main option, a fully separated layout can also be considered. However, it is necessary to review either simpler equipment specifications or how the budget is allocated between interior and exterior finishes.
JPY 40 million range: highly flexible fully separated homes
A fully separated home is well within reach, allowing each household to choose its design and style with a high degree of freedom.
How should you set the budget for a two-generation home?
Here is an overview of the budgeting process and key steps.
Decide how much cash to allocate to the home purchase
A practical approach is to subtract "the money you will still need after the purchase (such as moving costs and around JPY 500,000 for furniture purchases)" from your savings and use the remaining amount as your guide.
Calculate the amount you can borrow with a home loan
A repayment burden ratio of 25% or less of annual income is a reassuring benchmark. With an annual income of JPY 4 million, the guideline is about JPY 83,000 per month and a loan amount of JPY 28.45 million. With an annual income of JPY 8 million, it is about JPY 167,000 per month and a loan amount of JPY 57.25 million.
Make active use of preferential tax and support programs
If you meet the requirements, you may be able to significantly reduce your tax burden through measures such as reductions in fixed asset tax and real estate acquisition tax, special treatment for small residential properties, and tax-exempt gift allowances for funds used to acquire a home.
Frequently Asked Questions (FAQ)
Q. Which type of two-generation home offers the best cost performance?
A partially shared home. By sharing the entrance or bathroom while keeping the living room separate, it is possible to maintain privacy while controlling costs.
Q. What should you be careful about in a two-generation home?
Ensuring privacy and addressing differences in daily schedules are important. In particular, the placement of wet areas should be designed with sound insulation in mind.
Q. Is a two-generation home difficult to sell in the future?
If it is a fully separated home, one unit can also be rented out, which tends to make it easier to preserve asset value.
