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The nation, meanwhile, seems to be gritting its teeth and preparing to battle the shortages out.
We'll see how that one goes.Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
British Buyer wrote:So if I don't sell this apartment in Shanghai, I continue to earn zero dollars per month.
If I do sell it, I make a little over $2,000 a month. So what should I do? That's what the Yanks call a No-Brainer
This is exactly why I'm now in the process of moving my money from one Melbourne property to 9-12 Japanese ones (that and the risk mitigation/hedging that comes with spreading them eggs).
Nice to get some confirmation from similar streams of thoughts in other corners of the world.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Freckle wrote:I’m contrarian.. goes with the neighborhood, however most of the guys here are great to debate with. Funny thing is most of us don’t really disagree with each other in a general sense.I actually tend to agree with most of what the freckle writes
case in point, %100 correcto-mundo- and exactly what the current PM is trying to make the pollies see, exerting all the political and business leverage he can muster to pull BOJ along, and undoubtedly damaging his own ratings in the process, to try and implement the IMF’s recommendations. Getting over addictions (to power, technology, debt or low inflation, you name it) hurts, but is exactly what Japan needs (not that I suspect Noda of any humanitarian motives or what, but he’s heading in the right direction)…Hopefully the well-needed proposed increase in migration quotas will also help to steer things towards a relative plateau or at least less pronounced decline- otherwise the worlds’ 3rd largest economy will be nothing of the sort. A stroll through Tokyo around Xmas though, shows that in the area of power consumption, at least, the penny hasn’t dropped. The annual “my 50,000,000 watt 300 meter high Xmas tree is bigger than yours” contest is still in full force, and the masses are still flocking to bask in their neon warmths. Maybe when the blackouts start?
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
From posts here it would seem that Alex Franks of carolinaliquidator.com does a darn decent job
Best of luck to you!
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Great post, Steve, thanks for that.
Loved the "fear of black people" – I think as Australians, we're about 40 (if not 70) years behind "the times" in our ingrained xenophobia – give it a few more generations (barring more megapolis terrorist attacks) and we'll get there.
Also completely agree about cap gains being speculative. Your attempt to assess areas based on potential economic downturn migration trends and cashflow returns is, in my view, the only way to go at the moment, no matter where you invest – been doing the exact same in Japan (except we also try to assess radiation plumage migration rates now and again
)Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
lawsjs wrote:Thanks to posts by Emma, Alex, Jay, Kyler, Tx Cashflow, Ziv etc the scams should be easier to avoid in the future, but a year ago there was no one really around telling ‘the truth’.Not sure how I was honourably included in this fine list (not having anything to do with the US), but appreciate the association, thank you.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Terry – Chikako just came back from a month or so there, and looks like the next trip for both of us will be late may to early june – will post here before we go and see if you're still around. haven't taken the little one anywhere near Tokyo since last year, but we often land in Osaka then head to Fukui, Fukuoka etc, so should be easy to touch base.
C2 – where in japan do you normally take them slippers off?
could be nice to catch up when we come next, as wellZiv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
C2 wrote:Would be interested to see any links to any 9-12 blocks for 300K in Fukuoka city.As mentioned, haven't seen the need to delve deeper personally, due to lower returns and no interest in redevelopement – will happily forward the agent's details to you, if you wish, you sound like you've got Japanese speaking feet on the ground there, so you can probably take it from there yourself – let me know if you want his contact info (@Moderator – please note that this is a direct response to a direct request for information, NOT advertising, and NOT selling my product – this is a referral to a third party).
This particular agent doesn't normally post online, so not sure if he can help with a link, he usually provides us with PDFs or communicates by phone (in this case he showed us a printed copy while we were visiting his office), but if you check with him I'm sure he'll forward the listing and others like it directly to you – he certainly communicates by email readily enough (in Japanese of course).
C2 wrote:How long did you spend on the ground in Fukuoka talking with business owners?In this particular case, one week, and most business owners or employees I speak to are typically hotel / real-estate / insurance / accounting / legal personnel etc, that is to say, people directly connected to my niche (the buying and selling of older condo units of particularly high rental returns) and I reported their impressions above – these are further supported by real-estate and salary trends in the area in the last 8 years or so, and particularly in what's been happening there in the last year, post-3/11.
C2 wrote:Daimaru department recorded its 6th year straight decline…Japan Department Stores Association released figures…omitting those of the new Hakata Hankyu…a 12.9% drop from the year-before period, and the 32nd consecutive year-on-year decline. Adding the figures for Hakata Hankyu results in a 17.4% increase, however…March sales for the 19 Kyushu and Okinawa Prefecture department stores outside of Fukuoka City fell 5.3% from the previous year to 27.351 billion yen, the 43rd straight monthly decline…Kyushu Bureau of Economy, Trade, and Industry released its figures for September sales at large retail stores …a 1.3% year-on-year decline and the 26th consecutive monthly drop. Sales at supermarkets and convenience stores rose for the first time in 16 months, however, fueled by the demand created by the sharp increase in cigarette taxes that went into effect in October…A great collection of informational tidbits, thank you, but hard to really point at a trend there, particularly without comparison to the rest of Japan. And again, as mentioned above, not directly related to anything that we deal with from a residential property owners' perspective. Not to say that this information has no merit, it does, but as per my original post, it needs to be taken into context with comparison to where things stood several years (or even one year) ago, and compared to information from other parts of Japan for any direct sense to be made of it. While I can (and will) ask Chikako, my Japanese partner to read, verify and expand upon the numbers you've provided when she has a bit of time to spare, they don't seem to me, at first glance, to bear a direct relevance to the topic here, unless taken into account compared to the rest of the country, not to put too negative of an emphasis on the point.
C2 wrote:In regards to construction.There are always large projects under way across Japan but this no indication of a good economy.Never suggested it was, nor do I think the lack of building is necessarily a sign of a bad economy. I was merely mentioning this as an impression of a walk down the street, and not as concrete evidence of anything except the lack of same app. six months ago, on a previous visit, and in other areas, such as Fukui, which we visited on this occasion. Again, this was mentioned in passing and bears no direct relevance to our interests there, so pardon me if I don't address the rest of the statistics regarding construction and projects.
To summarize, please note that at no point did I say Kyushu or Fukuoka are in any way separate to the economic state of the rest of Japan, or that Japan is in any way separate to the economic state of the rest of the world. What I was suggesting, and still do, is this –
Kyushu area, Fukuoka prefecture, and Fukuoka city – particularly compared to 6-12 months ago, and certainly in aspects relating to the sales and rentals out of older, micro/small condo units – are doing well in comparison with other CLEAN areas of Japan, which is doing well in comparison with other areas of the world. I think a 5% decrease in average sale value between 2008-2011 is pretty darn good, considering the state the world's in atm, as well as the fact that salaries in Fukuoka prefecture have been steadily climbing back towards their pre-2008 values, and are now only 5-6% under that. To me, as a property owner who's looking for singles/couples, youngish company or office employee tenants (core family numbers, btw, meaning couples with young children, have been rising in Fukuoka, while the rest of Japan is suffers from an ageing population syndrome) – this was good news a year ago, and remains doubly so today.
Comparing this scenario to anything I can get, investing the same amount of money anywhere else in the world, from a cashflow perpective, at this point in time – Fukuoka wins hands-down. And again, I'm still waiting to see alternative numbers from the US or anywhere in Aus. (I'm getting a feeling the US comes close or possibly does even better on potential returns, but the hassle compared to Japan is astronomical…)
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Hats off, I’ve been reading about what you deal with for those returns
I dwell in zero maintenance, maximum occupancy land. We don’t get those returns here, but on the upside, deal with a lot less on a daily basis, and don’t need to rely on capital gain, finance or rehab of any sort. Just different.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
We'll see how that one goes.
