Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
You can view foreclosed properties listed for as little as $US10,000 in Japan thanks to depopulation and a culture that is geared towards working for the state. I bought foreclosed properties in Japan and now I reveal all in our expanded 350+page report. The information you need to know, strategies to apply, where to get help, and the tools to use. We even help you avoid the tsunami and nuclear risks since I was a geologist/mining finance analyst in a past life. Check out the "feedback" in our blog for stories of success by customers of our previous reports.

Download Table of Contents here.

Wednesday, August 01, 2007

Why buy property abroad?

Reasons to buy overseas
The idea of buying property overseas is a pipe-dream for alot of people, and perhaps alot of people can't imagine doing so because them seldom get the opportunity to travel overseas, and if then, only for short periods. These restraints are understandable 'deal breakers' though for certain people the idea of owning property overseas makes alot of sense. Here is my rationale for buying overseas:
1. Exchange rate benefits - Careful it can go both ways!
2. Holiday destination - Do you really want to go to the same place every year? Does the place meet your lifestyle objectives? Do you know enough about the country to buy? Do you have support if you need it?
3. Investment income - Sure the properties can be cheap, but how are the investment yield, forex variability and interest rates going to work for you?
4. Residence - If you are thinking to stay in the country for a while, you have the capacity to borrow, the local forex rate is strong and the local property market is booming, then why wouldn't you invest?
Grounds for not investing
Well there are a number of compelling reasons for not investing in a country despite the apparent benefits:
1. Legal or constitutional restrictions - In alot of countries foreigners can't own property. In most developed countries foreigners are allowed to buy improved or strata-based property only, eg. apartments and condominiums.
2. Sovereign risk - the country is governed by a statist regime which gives you reason to question whether you will have the right to repatriate your capital, whether you will be exposed to rapid movements in exchange rates or changes in interest rates or the tax regime. We are looking for stable policy, and wishing to avoid poitical instability and military coups.
3. Cultural barrier: When you are looking at buying land overseas, you take a risk if you dont speak the local language, or culture. Being a foreigner can make you a target for theft, public ridicule or torment, so its worthwhile determining people's attitudes to foreigners, as well as the governments. Generally having a local technical language proficiency is desirable because you might need to deal with solicitors, conveyancing agents, plumbers or disgruntled neighbours. Having friends might seem the ideal solution if the friendship remains. For these reasons the Philippines, Singapore and Malaysia are attractive for ENglish-speakers, while Japan, China and many other Asian countries are problematic.
4. Undesirable fiscal controls: Some countries will display laws that undermine investment returns or the functionality of the property. There might be constraint on the uses for the property, such as land use or development heights, licensing or approval processes or delays. Locals might even ignore these laws, but because you are a foreigner you are risking more by breaking the law. Unfavourable tax regimes are another big issue
5. Rule of law: There are several aspects that we are looking to establish from the legal system. (i) Whether the local law is conducive to our investment goals, whether the legal system offers affordable and accessible justice (no long court delays), support for foreign language speakers, no sign of discrimination of foreigners, integrity in the judicial process.
6. Safety issues: You need to know that you and your property are safe, safe against destruction of property and person. This is where a condominium or land makes more sense, or having people say there, but they may well be the culprits, even if you know them, if you are not there to supervise, or have not established the basis for trust/respect.
Positive investment criteria
1. Proximity to your home country: If the place you are intending to buy is in a neighbouring country then you have much greater opportunity to use the property, as well as the ease to sell it.
4. Good information support: When dealing in a foreign market it can make all the difference if you can rely on information from fellow expats who have already dealt with the issues you are confronting. Take care though as some expats you might regard as 'kindred spirits' from the mother countries are actually out to fleece you. There are often numerous forums for people living in each country. Some have local GFs so have local knowledge they can share with you. Its worthwhile to confirm info that looks dubious.
3. Income growth: We are looking for healthy economic growth which will flow through to higher incomes, greater employment, more housing demand.
4. Relaxed monetary policy: We are looking for a positive terms of trade, solid productivity improvements and high capital inflows to support a rise in capital inflows, a stronger currency and a relaxation of interest rates in a low inflation setting. These conditions will increase the capacity of residents to borrow money for property purchases. All the better if the country has previously had a protracted period of tight monetary policy because there will be a bent-up demand for housing.
5. Favourable regulatory controls: Generally we are lament the existence of government controls that inhibit our freedom or decision-making, however certain controls have a favourable impact on property prices. Favourable controls will be those that restrict supply of housing stock, whether because of building height restrictions (Japan) or strict zoning laws (Australia, NZ)
6. Subdued population growth: We are looking for stronger population growth because that will increase domestic demand for property and other goods, as well as boost the liquidity of the labour market. Be advised that whilst a country might display weak or negative national population growth (Japan), their may be significant internal migration into the larger capital cities - perhaps for jobs, or away because of excessive property prices.
7. Building repair infrastructure: I always reflect positively on those markets where there are local building supplies which I can buy with ease.
8. Favourable exchange rate: Forex rates play a big role in your decision because you will likely be holding the property for more than 3 years. Therefore its critical that you know the forex dynamics between your home and host countries. The biggest factors are relative differences in the impact of global growth, fiscal policy and interest rate differentials.
Examples of people buying overseas
Here are some interesting examples of people buying property overseas:
1. Lifestyle seekers: Retired, divorced men buying an apartment in the Philippines, Thailand, Russia to meet and entertain younger girls. Some use the apartment for holidays only, others retire there with the promise of a low cost of living.
2. Expat executives living in Asia who buy a property in their host country because they envisage being their several years, and have the support of a local bank, so are able to borrow in the local currency.
3. Sports fanatics who want to buy ski or trout fishing resort accommodation in the opposite hemisphere to avail of the reasonal benefits involved. eg. Australians are causing a housing boom in Japan by buying new resorts in Nagano and Sapporo areas, close to international airports.
These people are buying properties across a wide pricing spectrum. For instance, you can buy a 1-2br (40m2(townhouse or apartment in the suburbs of Manila for as little as P700,000 ($US14,000) or an prestigious mid-city penthouse for P35mil ($US0.7million). Beach-side land away from Manila in a poorer province might go for P200/m2, but a nice beach close to Manila might be as much as P70,000/m2.

That property is cheap seems to be one of the compelling reasons to buy property overseas, the other one seems to be, if there is a compelling reason for going there. Those pursuing vices abroad are advised that non-substantative relationships quickly break down into problems, or otherwise are a basis for disrespect and abuse, and that goes both ways. You can trade value for value or vice for vice - you determine the market and the way your are treated from the outset whether you deserve it or not.
Source: Sermon on the Mount, Act 50.fool.2.75.po

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