Renters Beware

You may have noticed that off-base housing agencies have recently started listing their house/apartment rental properties in US Dollars ($). They are doing this to trick you. Here’s how: The USD is currently very strong, so they advertise their properties in dollars to make those properties seem more affordable, and therefore, more attractive to you. However, the contract will still state the monthly rent due in Japanese yen, not US dollars. For example, let’s take a property being advertised for $2000 per month -- at 150 yen per dollar, that comes to 300,000 yen per month, and that is what your contract will stipulate (300,000 yen per month). The danger for you lies in the fluctuating yen/dollar exchange rate. If the dollar weakens to 120 yen per dollar, you will suddenly have to come up with $2500 per month (2500 x 120 = 300000). If the dollar weakens to 100 yen per dollar, you will then have to come up with $3000 every month to pay your 300000 yen rent. If the dollar weakens to 80 yen per dollar -- and yes, it has been that low before -- that same 300000 yen per month will now cost you $3750. That is almost double the $2000 per month that was originally advertised. Will you still be able to afford that? Be careful, and tell your friends, subordinates, etc.

Posted in: Housing & Real Estate. 1 people are following this item.

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