Selling your house in Tomakomai to fund your retirement | Comparing a sale, a leaseback, a reverse mortgage and moving
“My pension alone is not enough.” “I want cash in case of medical or nursing care costs.” “Maintaining a large house has become a burden.” When you think about money for retirement, there are several ways to turn your home into cash. You can sell it and move to a smaller home, sell it through a leaseback and keep living there, or borrow against it with a reverse mortgage. For homeowners in Tomakomai, this article compares these options from the same viewpoint.
Comparing the four methods
| Sell and move | Leaseback | Reverse mortgage | Keep living there (rent out) | |
|---|---|---|---|---|
| Ownership of the house | You give it up | You give it up | You keep it | You keep it |
| Can you keep living there? | You move to a new home | You keep living there and pay rent | You keep living there | Only if you rent out part of it |
| How you receive money | Sale price (lump sum) | Sale price (lump sum) | Loan (lump sum or installments) | Rental income |
| Monthly burden | Rent or loan for the new home | Rent | Interest | Upkeep such as property tax |
| Points to note | Securing a new home | The sale price tends to be lower, and depending on the contract you may not be able to keep living there | Interest rate changes and the risk of the collateral value falling | Management work and vacancies |
Sell and move: the widest range of options
This means selling your house and moving to a smaller owned home, a condominium or a rental. Upkeep costs and the burden of stairs and snow shoveling decrease. In Tomakomai, residential land rose by an average of +4.15% in the 2026 official land price publication, which works in favor of sellers (Ministry of Land, Infrastructure, Transport and Tourism).
- Decide where to move first: if the timing of the sale and the purchase does not match, you will need temporary housing. The basic rule is to do both in parallel, not to “sell first and then look”.
- If you move to a rental: depending on your age and income, the tenant screening may take time. Check the conditions for a guarantor or a rent guarantee company first.
- Taxes: when you sell a house you lived in, you can deduct up to ¥30 million from the capital gain (National Tax Agency). In many cases, no tax is due.
- Effect on insurance premiums: in a year with a gain from a sale, your national health insurance premiums, long-term care insurance premiums and the share of medical costs you pay yourself may be affected. The treatment differs by municipality, so check with the city office.
For moving to a condominium near the station or a hospital, see “Buying or selling a condominium in Tomakomai“. For the selling steps, see “Selling real estate in Tomakomai“.
Leaseback: keep living there after selling
A leaseback means selling your house to a company to get cash, then paying monthly rent to keep living there. The Ministry of Land, Infrastructure, Transport and Tourism has published a guidebook that advises you to watch the following points.
- Ask several companies for their opinion on whether the offered sale price is fair
- Consider whether you can keep paying the rent, and whether you can secure a place to live if you are asked to move out
- If the contract is a “fixed-term lease”, there is no renewal, and you may not be able to live there for as long as you want
- Check whether you or the company pays for repairs when equipment breaks
Do not sign a contract based only on the explanation “you can keep living there after selling”. Check three things in writing: the sale price, the rent and the contract period. Be careful of companies that pressure you to sign quickly.
Reverse mortgage: borrow against your house
The usual system is that you get a loan from a financial institution with your home as collateral, pay only the interest each month, and the principal is repaid by selling the home, for example when you die. You can get living funds without giving up your house. On the other hand, you need to check that the burden increases if interest rates rise, that you may be asked for additional collateral or repayment if the land value falls, and that there are conditions on eligible properties and age. Conditions differ by product, so check directly with the financial institutions that offer it.
Which to choose: the order of decisions
- Do you want to keep living in the house? If yes, a leaseback or a reverse mortgage. If you are willing to move, a sale.
- Do you want to leave it to your heirs? If you want to leave the house to your children, methods that give it up do not fit. Talk it over with your family.
- The amount and period you need: do you need a lump sum, or monthly support?
- Know the appraisal value: whichever method you choose, first knowing how much your house would sell for lets you compare.
What we can do
Banana House Inc. (1-1-1 Honkocho, Tomakomai) handles appraisal, brokerage and direct purchase of homes as part of retirement financial planning, and introduces new homes to move to. You are welcome to get an appraisal before deciding to sell. If you have been offered a leaseback and are unsure, you can also use our appraisal to compare sale prices. To apply, just give us three things: the type of property, its location and your contact details.
This page was machine-translated. The Japanese original prevails.
Frequently asked questions
When my pension alone is not enough, is selling my house the right decision?
It depends on your situation. If the upkeep of the house and snow shoveling are a heavy burden, selling and moving to a smaller home is a strong option. On the other hand, if you do not want to give up the home you are used to, there are also ways to get money while you keep living there, such as a reverse mortgage. First, compare your options with an appraisal.
With a leaseback, can I keep living in the same house after selling it?
It depends on the contract. With a fixed-term lease contract, there is no renewal, and you may have to move out when the term ends. Check the sale price, the rent and the type of contract in writing before signing. The Ministry of Land, Infrastructure, Transport and Tourism has published a guidebook.
Will my insurance premiums go up in the year I sell my house?
In a year with a gain from a sale, your national health insurance premiums, long-term care insurance premiums and the share of medical costs you pay yourself may be affected. The treatment differs by municipality, so check with the city office before selling.
If I sell and move to a rental, will I pass the tenant screening?
Depending on your age, income and whether you have a guarantor, it may take time. You will feel more secure if you look for your new home first, in parallel with the sale, and check the conditions for a guarantor or a rent guarantee company.
Consultations on selling and vacant houses are free
We can start a valuation with just three things: the property type, its location and your contact details. You do not need to have decided to sell yet.
Banana House Inc., 1-1-1 Honkocho, Tomakomai. We never use pushy sales. Please write in English or Japanese.
Sources and data
- Data retrieved: 2026-10-10. All prices are official public data and do not include our own estimates.
Yuki Nakazawa (President, Banana House Inc.) reviewed the Japanese original of this article. As a licensed real estate broker, we follow the Japanese rules for real estate advertising.
