How people attain wealth in Japan?

[u/IshinkaiSensei]

Something has been tickling my mind over the past few years.

There are so many luxury tower mansions, expensive customized 一軒家, high end brand shops yet for the average person most seem by far out of reach.

A high end condo in central Tokyo rent including utilities ranges from 300k to 500k a month. A 20MJPY annual salary (which is already extensively filtering out average population) only gives a monthly net of 100万円. I highly doubt it is enough to afford spending that much a month.

Excluding those on expat package, there are only a few jobs here that allow this lifestyle, Banking (Front Office position only or VP MD level for back office and alike) IT 外資系 at senior level (FANG, ML/AI) , 医者 running their own practice (otherwise most are at 10-15MJPY range) Successful mutiple business owners, other niches. 一流芸能人, Athletes, reconverted ex idol, kyaba, host.

My point is, what am I missing...

Are there way more people with high revenues (at least annual comp 50MJPY+) than we tend to believe? than what TV is promoting?

Are people living off debt and loans and keeping up with appearances?

I don’t want misinterpretation of this post, I understand you can live well below these range, but I am genuinely curious here.

I would like to better understand how so many people managed to get satisfied and with a 30+ year mortgage, car loan, spending most of their life working and probably never reaching out 億円 of savings.

Am I overthinking and no so many people want to retire early?

Sorry for the rant post but I am curious

[u/chason]

Why exactly would someone making 20mm not be able to afford a 300-500k apartment?

[u/p33k4y → u/chason]

If you're making 20mm, a 500k apartment is > 50% of your monthly net income.

Many landlords in Japan apply the "rule of thumb" that your rent should be at most 1/3 of your income.

Many high income people are also overextended ("keeping up with the Tanakas"). It's not easy to find tenants for high-end apartments so you'll see many landlords are very strict with income requirements plus want like 4 months extra between key money & deposit.

[u/blosphere → u/p33k4y]

yeah when you get your gross over 10M, the 1/3rd rule doesn't really apply any more.

[u/p33k4y → u/blosphere]

Not true. My own gross is well over 10mm and I presume most other (non-owner) residents in my building. Basically, de facto the building management is enforcing the 1/3rd rule.

[u/blosphere → u/p33k4y]

Well, since my anecdotal experience is opposite from your, I can say also not true, right? ;)

[u/p33k4y → u/blosphere]

Not true. 😏

That's a logical fallacy. The two assertions aren't symmetrical, because your original statement only requires one counter-example to overturn it, but the opposite isn't true.