Real estate investing
like any investment vehicle comes with risks. These risks can be difficult to
control for beginners on their own. Things such as rent not being paid, tenants
damaging property, items in the house breaking down and needing to be repaired
and other issues that can cause landlord’s headaches. In Japanese properties,
these issues are often absent.
Japanese Tenants generally stay for several years allowing a steady source of rental income.
Tenants usually are very reliable in paying their rent on time.
Tenants are respectful to rental properties making sure the properties are kept clean and tidy. On vacating properties Japanese tenants will make sure the property is left the same as when they moved in
By western standards, Japanese units/houses tend to be very basic accommodation. Tenants are required to purchase all white goods and furniture themselves. This even includes ceiling light fittings and fans
Little protection for the tenant at the end of the lease period.
At the beginning of a rental period the tenant must pay on average a deposit of 2 months rent. Deposits usually are non-negotiable as they are a refundable expense that is meant to cover any damages done to the apartment outside normal wear-and-tear
Another payment a tenant must make is called ‘Key money’ and is a throwback from the end of World War 2 when the country was rebuilding. It was a gift to the owner for allowing the tenants to live in the owner’s apartment. Although the building has long since been completed, the `key money’ payment still exists and usually is around 2 months rent
Other fees charged to tenants include cleaning fees and renewal fees.
With the help of Japan
Property Investments the process of owning real estate and managing tenants can
be even easier. Contact us to show you how.
Property prices in Japan should increase in the coming years because of the rising immigration in Japan.
Japan has had
a history of being isolated. Aside from being geographically difficult to
reach, for much of its early history, the country for the most part remained
closed to foreign influence. Between 1641 to 1853, Japan barred its nationals
from leaving and foreigners from entering. Only traders from China and the
Netherlands were allowed at the port of Nagasaki on Japan’s southernmost island
isolation, strict immigration laws and a declining birth rate has now led Japan
to be referred to as a “super-aged”
nation, where more
than 20% of the population is over 65. By 2060, the country’s population is
expected to plummet by more than 40 million from 2010, to 86.74 million people,
according to a projection by the Japanese Health Ministry (Green, 2017) . With
fewer workers paying taxes to support a growing older population in need of
pensions and healthcare services, Japan’s economy is facing an unprecedented
challenge and massive labour shortage.
One of the
major ways Japan may be able to ease it’s labor shortage especially in
so-called undesirable vocations such as demolition and construction is to
increase immigration of foreign nationals. Currently Foreign nationals make up
just 1.6% of the country’s overall population.
(CNN 2018). Just in the
last 5 years immigration has doubled and looks to continue to increase. (Nikkei
Asian Review 2018)
In most countries an increase in immigration has led to positive effects on property. These effects include increase in property prices, an increase in the demand of both owner occupy, increases in the number of tenants, and rental properties and also an increase in rental prices. Naturally many Immigrants are likely to choose rentable properties over owner-occupy. With the increase in immigration in Japan there is an expectation that property prices and rental costs will increase also.
Education, education, education! We are not born with all the skills needed for survival. Learning to walk, talk, eat safely are skills taught to us and picked up over time. Sadly an education in money, the power, the pitfalls of it and everything in between is rarely taught to us. If you are lucky enough to be brought up in a family that is open about money at least you have a head start. In my family we never discussed money, it wasn’t an option. I had a comfortable upbringing and never went without the necessities. But neither did I have everything I wanted, who does, right?
College and Work.
I was good enough in school to get through and go to University. Upon graduating University I went into the world of work and followed the same month by month pattern as the majority of the worldwide population. Nothing special but no shortfalls either, I was comfortable.
So what changed?
It was the realisation that I would not be able to provide for my family. Of course I could put food on the table, pay the rent and take care of the basics but I wanted to PROVIDE for my family. I am not talking about spoiling them but I wanted to give them more opportunities to grow and experience life than I had. And that is when I began my Education in Money, business, investing and real estate investing.
Rich Dad, Poor Dad.
It all started with this book. A mentor of mine, who I still work with today gave me a copy of the book. Lesson 1, give back! I was blown away that he would give me a book and I devoured it that night. I was off on my journey. Rich Dad, Poor Dad written by Robert Kiyosaki was first published in 1997 and tells the story of two dads with different skills, mindsets and fortunes. I was hooked and after educating myself on the local real estate market I began my property journey with no money down in 2003.
Rich Dad, Poor Dad
What did I learn from Rich Dad, Poor Dad? A quick summary;
If your family is not wealthy, find someone else to learn about money from.
Work gives you a job. Job stands for Just Over Broke.
Saving won’t save you. Inflation will make the value of your savings disappear over time.
There is good debt and there is bad debt. Learn to identify each and profit from good debt.
The government will not support you in your old age.
You have to find a way to support yourself.
Investigate, find and invest in cash producing assets… and repeat.
Once you are wealthy, give back. Just as my mentor did with me, give a book, give time, give whatever you can.
And so 20 years after first being published does Rich Dad, Poor Dad still have something to give? Absolutely! It is my go to book when someone contacts me and asks “how do I get to where you are?” I give them this book and a link to the RCPD website resource page, it’s a great place to start. Contact Sim or I today to start your journey of learning and financial freedom.
As we outlined in chapter 2 of our free ebook, Japan is open to foreign property investment. Many Asian countries have laws prohibiting foreign ownership of land to ensure prices do not escalate beyond the means of local people. Japan has never had such a rule and remains open to investors regardless of their nationality. You don’t even need to live in Japan to purchase Japanese property although securing a loan while loving outside Japan would be a barrier to entry. Of course during the 1980s and 1990s the Japanese real estate bubble made investing in Japanese property undesirable. Since the bubble dramatically burst in the mid 1990s property prices have stabilised and are now more attractive than ever before.
Hong Kong and Chinese investors
At JPI we receive daily interest from potential investors all over the World and it is exciting to share opportunities with others. Recently interest has been growing from investors in Hong Kong and Mainland China. We suspect that property prices are rather high in southern China and therefore yields are low. This would account for the increased levels of interest in Japan. This article published in the South China Morning Post supports what we are seeing here in Kobe. We are happy to work with individual investors or companies from anywhere in the World. The opportunities in Japanese real estate really are boundless.
Visit our website today to learn about the various investment opportunities or call/email us to discuss ideas further.
Christmas is nearly upon us and the countdown is on! Time to check gifts off the list and start wrapping things up. For many people around the world gift giving at Christmas has long been a tradition for both young and old.
Giving gifts is a surprisingly complex and important part of human interaction, helping to define relationships and strengthen bonds with family and friends. Psychologists say it is often the giver, rather than the recipient, who reaps the biggest psychological gains from a gift.
What about gifting someone an investment?
The fun part of this type of gift is having the chance to talk with receiver about what the gift is and how it can help them in the future.
Gift for someone who has everything
We all know someone who simply has it all.
When they want something, they just go out and buy it, often the giver is then scrambling for gift ideas when it comes time for special occasions.
Whether it’s a car accessory, the latest tech gadget, or new clothes, people who already have everything don’t leave a lot of choices for well-meaning gift givers. The trick to getting the perfect presents for the people who have it all is to think up things they wouldn’t purchase on their own – and that can be a challenge.
Nobody wants to spend hard-earned cash buying an unwanted present or something that will get buried in the back of a closet.
Purchasing an investment gift could be the perfect present.
Gifts for young investors
One of the more everlasting gifts that family and friends can give is one that will teach young people about personal finances and encourage them to save. An investment present can be the gift that keeps on giving
Gifts for family members
Giving a family member an investment gift can be a great way to get someone started into investing.
An investment gift could be one of many things. These could include Stocks, Bonds, precious metals or an Index fund. Purchasing a property is probably out of most people’s financial reach.
Purchasing a share in a property for someone could be a viable option.
This is where Japan Property Investments can help you out.
Why not contact us and let us show you how you can purchase a share in a property for that special person. https://www.japanpropertyinvestments.com/
Japan is preparing for the 2020 Olympics in a major way. Many are confident that this will improve Japan real estate prices in many areas. The Bank of Japan estimates economically the Olympics should bring in around ¥30 trillion ($250 billion dollars). This is many times more than the estimate of the costs to prepare for and run the event.
The biggest impact to property price is mostly to be felt in Tokyo where prices have already begun to increase but it’s expected that other areas including Osaka, Fukuoka and other larger cities to also increase.
Chinese interest in Japan Real Estate
In May this year, China Daily Asia reported that more Chinese and Hong Investors are investing in Japanese real estate. This is occuring as the country prepares for the 2020 Olympics. The reasoning is that investors are preparing to take advantage of the capital appreciation potential in the property sector as Tokyo’s population continues to increase.
According to financial services firm Jones Lang LaSalle (JLL), vacancies for top-grade homes in Tokyo hit their lowest level in the fourth quarter last year since the 2008 global financial crisis. Increases in both rental and property values have occured.
Property values could increase anywhere from 20 –30% between now and 2020.
Tourism and Japan Real Estate
Tourism has been booming in Japan in recent years and this is set to increase especially as the countries gears up for the Olympics. Holidaymakers in Hong Kong, Taiwan and China view Japan as one of the most popular destinations for holiday breaks, shopping and tasting Japanese food. Now these same tourists are finding that Japan real estate is also a popular opportunity. As tourism increases Japan is also expecting property prices to increase also.
Have you thought about investing in Japan Real Estate? Now may be the best time as it gets closer to the hosting of the Olympics.
Come and check out Japan Property Investments web page.
Find out how we can help you get started in investing in Japanese property.