Life Span & Loan Period

Legal Service Life Span is the depreciation span designed by law.
Its length varies due to a type of building structure and it has strong impact on your loan period.

Here is the chart of life span for each structure.

To calculate a loan period:

Legal Service Life Span – Age of bldg = Loan Period

e.g. : 20 years old RC  vs. 20 years Wood
RC= 47-20 = 27 years
Wood= 22-20 = 2 years
※ Of course there are exceptions to this. 

As you can see a type of building structure and life span have such an important role when it comes to a loan.  
RC is quite popular because you can get longer loan length than other types of building.
The longer the loan length you get, the higher cash flow you can get.

So it doesn’t mean that a property with past life span cannot use a bank loan.
It’s just hard to use a package loan. So a proper loan needs to be arrange for it. 

Life Span & Loan Period
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