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.
But where do I start?
Our friends over at Smart Investment published a good article yesterday on Property Investment. “How to build a large investment property portfolio on an average income”. Something that both Sim and I have done. JPI is the next level of our journey and our attempt to give back and educate others. There has never been an easier time to learn the fundamentals of and profit from Property Investing.
The article states 4 easy steps;
- Do your research
- Obtain a mortgage
- Use your equity
- Don’t wait
Easy, right? Research is vital. Not only property research but investigating what is involved in being a landlord. Legally what do you have to provide your tenants? How do you complete the necessary paperwork? Where do you find great tenants or how do you choose a real estate agent? There is limitless information out there.
Obtain a mortgage.
Depending upon your situation, this may not be so easy. Since the credit crunch banks around the world have become more careful with who they loan to. However loan rates are at an all time low. If you have a full time job and can prove you are a ‘safe bet’ you could land a excellent mortgage. Again, research, research, research.
In the article Paul Glossop writes about using equity that you have built up in your personal home. However you may take the Rich Dad Poor Dad (RDPD) route and save your equity for a down payment on a rental property. RDPD’s philosophy was to send all available cash on a buy-to-let portfolio that afforded you enough money to pay for your own dream home.
Lastly, don’t wait. This is vital. The earlier you get into property investment the quicker you profit. Don’t read that as ‘quick profits’. It takes 20-30 years to pay off a mortgage but when you do the pay back increases. The longer you put off investing the long it will be till your profits roll in.
Do your research today, or call/email us at JPI to see how we can help you get involved immediately. Sim and I have 20 years combined knowledge of research and taking action in property investment. “Invest together grow together”.
Is purchasing student accommodation a wise investment? Many countries are seeing a rise in students attending Universities rather than heading straight into the workforce. This is excellent news for anyone who is thinking or has already invested, as it’s likely that students will be fighting to live in your accommodation.
In many countries student accommodation is one of the strongest performing asset classes due to the constant demand for somewhere to live. If students are happy with the property they may be there for years and when they leave they are more likely to recommend the property they were in. Students will be looking for the following
- Properties are conveniently located to public transport, shops and of course the University.
- Accommodation is clean and livable
- It offers access to wifi.
- Has electrical goods such as fridge, television and washing machine
Student Accommodation in Japan
What about Japanese student accommodation market?
Like other countries the demand in Japan for decent student accommodation is also very high. Of any country, Japan is one which offers even more benefits. Purchasing this type of investment in Japan has securities that other countries may not have such as:
- Students are respectful of the property, maintaining it and regularly cleaning.
- Parents must be a guarantor of the property. Meaning all bills are paid
- Students will generally stay in a property for a minimum of 3 years. Often recommending the property to others when they are to leave.
- Attending university is a high priority for many Japanese
JPI has student accommodation opportunities for you!
Maybe this is an investment you would like to add to your portfolio!
JPI has an excellent investment opportunity of a 1-bedroom student unit.
JPI makes sure that the investments meets specific criteria and that the returns are high.
For more information, visit the JPI webpage
One of the strongest draw cards for investing in Japanese property markets is the high rental yields that are possible from many properties. Upwards of 5%+ is common and in some properties it’s possible to get above 10%
In the past finding properties that have a high rental return and capital growth has been pretty much non-existent, however, according to the Real Estate Economic Institute, the average price of a condominium in Japan in 2015 was ¥46.18 million, which is 7.2 percent higher than it was in 2014. Over the past three years, spurred by material and labor shortages, the price of condos have increased by almost 20 percent, the steepest rise ever.
PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI) rank Japan as number one in Asia in 2016 for its prospects for residential property investment returns, the same as for 2015. Tokyo ranked number 1 and Osaka, number 4. Rental yields typically are around 5% possibly higher. Currently the market has more buyers than available assets. Many of these properties under-priced assets.