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Japan is considering offering interest-free loans to people aged 70 and older to reinforce their homes against earthquakes in the wake of a devastating temblor on New Year's Day, a government source said Wednesday.
Under the new plan, borrowers will be able to use their homes and land as collateral to secure loans for retrofitting their residences, while the government will cover the monthly interest payments, the source added.
Prime Minister Shigeru Ishiba has pledged to take steps to make Japan more resilient to natural disasters. On Tuesday night, a powerful earthquake struck the Noto Peninsula again, a region still undergoing recovery efforts from the Jan 1 temblor.
The loans will be repaid by the homeowner's heir after their death, such as through the sale of the property, eliminating the need for repayment during the borrower's lifetime in an aging society, according to the source.
Funding for the measure is likely to be incorporated in a supplementary budget for fiscal 2024 through March next year, as many elderly people in Japan have become more reluctant to quake-proof their homes due to the financial burden.
© KYODO
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sakurasuki
Remember it's a loan to elder, in some banks they refuse to provide loan after certain age for a reason.
What happened after that person died? Don't forget zero interest loan that were given during Covid not only being unpaid, it's undiscovered.
https://mainichi.jp/english/articles/20241024/p2a/00m/0na/021000c
diagonalslip
sakurasuki
@diagonalslip
So instead those houses becoming cheap akiya, it can become a collateral for loan?
kohakuebisu
Rehousing people following an earthquake costs way more than simple house repairs done beforehand that would stop people becoming homeless. Post earthquake dislocation affects old people's health too, sometimes fatally.
The vast majority of people made homeless in earthquakes are in houses that are leaning a bit but deemed unsafe. With termite damaged parts replaced and more braced walls, far more of them would survive. The mass media always show the most destroyed buildings for dramatic effect, like those company offices that fell over in Noto, and give the impression that lots of houses are completely wrecked. The truth is more mundane and you would need a plumb line to spot the damage to some "completely destroyed" houses.
WoodyLee
"" Under the new plan, borrowers will be able to use their homes and land as collateral to secure loans for retrofitting their residences, while the government will cover the monthly interest payments, the source added.""
Bad idea, so what happens when these victims are unable to pay back their loans?
They lose their LAND, HOME, and their life savings.
This is no different than not giving them anything at all.
Might as well just leave them alone.
WoodyLee
At that age these people will NOT live long enough to pay off their loans, plus they don't have the luxury of that extra income to make the payments, so what will happen the banks will take their LAND & HOMES and sell them there will be nothing left for their kids and grandkids.
This is an ugly scheme that will only benefit the banks and no one else.
kohakuebisu
Many people will lose their HOME if they don't earthquakeproof it. The taxpayer will then have to pay a fortune for them to be rehoused. This fortune is often a huge multiple of the cost of adding a few 2x4 walls that would have saved the house. You can't survive a big shaking with thin unbraced walls made of clay, even if they "breathe" or whatever non-building science traditionalists come up with. Every earthquake proves this.
Alongfortheride
Did you actually read the story? AFTER they die the loan can be paid back with the sale of their home and land.
Alongfortheride
Just so you know there is no such thing and a Earthquake "Proof" house.
Modern houses and older ones with upgrades are only designed to stay up long enough for you to survive.
In a big Earthquake even a brand new house will be damaged.
proxy
Probably would be worth offering interest free loans for better windows with thicker glass and loans for proper insulation.
kohakuebisu
They've been offering massive window subsidies to everyone since Jan 2023. Its called "mado rinobe".
Earthquakeproof here makes lots of sense because those prefabs you see as temp housing cost 6-7 million yen each. That's just for the box. Transporting them and connecting them to electric and water etc. at the school field or wherever they are set up will cost a fortune too.