Forums / Community / Opinionated! / Japan is cheap!

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  • Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    I’ve been in Japan for about a week now, and am amazed at how cheap things are – contrary to popular opinion.

    Some prices in Osaka
    -Brand new houses A$300,000+
    -Apartments for rent, A$400/month for a small cheapy. $800/month for something reasonable. 15 min from city
    -can of beer $3
    -meal in a cheap restaurant $10
    -New suit $100 for good quality
    -cars are so cheap too, and many more models than in Australia

    Off the top of my head, I can’t think of anything that would be more expensive than in Australia.

    One thing about the real estate market is everybody that I have spoken to has negative senitments. Prices have been dropping for 14 years, and there is still no sign of the market recovering. it is cheaper to buy and pay off a loan, than to rent, but most people are still wary of buying.

    There are development companies offering 100% finance. Interest rates are approx 1.2% and terms are up to 35 years.

    There does seem to be a bit of a construction boom. Many people are knocking down their old houses and replacing them with new buildings.

    There are also renovation rescue type programs on TV too.

    I will be doing further research while here.

    Terryw
    Osaka
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    Profile photo of XeniaXenia
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    @xenia
    Join Date: 2002
    Post Count: 1,231

    sounds like what is forcasted for the USA economy within the next 10 years!

    We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
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    Profile photo of PursefattenerPursefattener
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    @pursefattener
    Join Date: 2004
    Post Count: 217

    Hi Terry

    I remember Dolf and Robert K on an audio saying that it was extremely difficult for a foreigner to own property in Japan. Is this the case ?

    How are you going with your japanese ? [dazed]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    One thing that is more expensive over here is beef. Had some Aussie beef tonight, cost was about $30 per kilo – they sell in 100g lots here.

    Plenty of foreigners own proeprty here. it is not hard to do, the hard part is getting the finance as banks want to see 3 years work history in Japan.

    My Japanese is not bad, I started learning more than 15 years ago, and have a masters degree in Japanese language. My reading ability is a bit rusty tho.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of castoncaston
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    @caston
    Join Date: 2005
    Post Count: 58

    One thing that fascinates me is the possibility of getting a loan from a country with much lower interest rates and suddenly deals are everywhere! Albeit you’ll be watching the value of the Aussie dollar and praying it stays strong.

    Unfortunately Japan is one of those places that you don’t really know what goes on. Westerners that have lived there for years still haven’t broken into the various social circles and going-ons within.

    Loans have been discussed a bit on the Gaijinpot forums.

    http://www.gaijinpot.com/bb/showthread.php?t=1240&highlight=loan+house

    http://www.gaijinpot.com/bb/showthread.php?t=8097&highlight=loan+house

    Profile photo of castoncaston
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    @caston
    Join Date: 2005
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    Originally posted by Terryw:

    One thing about the real estate market is everybody that I have spoken to has negative senitments. Prices have been dropping for 14 years, and there is still no sign of the market recovering. it is cheaper to buy and pay off a loan, than to rent, but most people are still wary of buying.

    Isn’t that the essence of a “deal” when it is costs less to buy and pay off the loan than what you can collect in rent?

    Albeit you’ll be worried about negative equity/capitial growth nad you’d be living in Japan or need a Japan dwelling business partner.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Yes, I can’t understand why people just don’t buy. Many probably ndon’t want to commit to a long loan.

    Another thing cheap here is cigarettes. pack of Malbrow costs about $4! And kids can buy them on the streets from vending machines.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of castoncaston
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    @caston
    Join Date: 2005
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    Originally posted by Terryw:

    Yes, I can’t understand why people just don’t buy. Many probably ndon’t want to commit to a long loan.

    Are you going to have a crack at it yourself?

    Another thing cheap here is cigarettes. pack of Malbrow costs about $4! And kids can buy them on the streets from vending machines.

    Now that’s progress!

    Profile photo of TerrywTerryw
    Participant
    @terryw
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    I would like to, I am just in the process of researching loans here. It seems I will need a permanent visa, and job here first. I don’t want to stay here at the moment, so may have to go into a joint venture and buy in someone else’s name. Also not sure of the rental yields yet.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of MarucoMaruco
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    @maruco
    Join Date: 2005
    Post Count: 48

    I am a Japanese, but now live in Sydney with a permanent visa.
    Do you think it is possible for me to get loan in Japan to buy IPs here in Australia?
    Or I have to live & work in Japan to get loan?
    Or do you think it is possible that I ask my sister to get loan and joint venture to buy IPs here?
    I didn’t know that the interest rate was so low to borrow money from a bank in Japan. I learnt all about investing in properties here.
    I should do some research when I go back to Japan next time. But where to start? Who should I talk to ?

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Japanese property prices have been slowly falling for around 15 years.

    If you wish to get involved in this market why not consider investing in Babcock & Browns property Trust as they are the only listed stock on the ASX which invests soleyl in Japanese property.

    Havent done too badly since their market debut either.

    Cheers Richard
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    IP funding and US property finance
    our speciality

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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of castoncaston
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    @caston
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    Here is their website:

    http://www.bbjapanpropertytrust.com/

    Looks like they invest in office and retail. I haven’t looked into it any further. I am suspicious as to why they would need to list on the ASX to get investment funds when interest rates there are so low. Just for the deposits perhaps?

    As always only invest once you make an informed decision after doing your research.

    Profile photo of hmackayhmackay
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    @hmackay
    Join Date: 2004
    Post Count: 197

    Terry,

    Very interesting reading.

    Look forward to your reports from Bankok.

    PS..Could you check out the price of a bar in Patpong please.

    Sayonarah

    hrm

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173
    Originally posted by hmackay:

    Terry,

    Very interesting reading.

    Look forward to your reports from Bankok.

    PS..Could you check out the price of a bar in Patpong please.

    Sayonarah

    hrm

    Hrm

    Went thru Bangkok briefly on the way over, and am going there on the way back. It seems property prices in Bangkok can be expensive similar to Sydney, eg $500,000 to $1,mil AUD. There are a lot of new apartments and rents can be very expensive too, like $10,000 per month. But there are plenty of cheap places to rent such as 2000B per month, less than A$100.

    I did goto Patpong on the way thru. My friends took me to a ladyboy bar! Interesting experience.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173
    Originally posted by Maruco:

    I am a Japanese, but now live in Sydney with a permanent visa.
    Do you think it is possible for me to get loan in Japan to buy IPs here in Australia?
    Or I have to live & work in Japan to get loan?
    Or do you think it is possible that I ask my sister to get loan and joint venture to buy IPs here?
    I didn’t know that the interest rate was so low to borrow money from a bank in Japan. I learnt all about investing in properties here.
    I should do some research when I go back to Japan next time. But where to start? Who should I talk to ?

    Maruco

    I don’t think you will be ble to get a loan in Japan unless you are working there. I know NAB and ANZ offer loans in Yen for properties in Australia. The LVRs are around 70%, and you may be subjected to a margin call if exchange rates fluctuate too much. Obe condition was that if you ever stopped working in Japan, the loan had to be renogatiated into AUD again.

    You can probably get more info by contacting the Japanese branches of Aussie banks.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of TechnoTechno
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    @techno
    Join Date: 2005
    Post Count: 37

    The demographic profile in Japan needs to considered. It is the fastest ageing population in the world and will soon have falling population numbers.

    The fertility rate (children per couple) has been hovering around 1.1 to 1.3 for over a decade. One of the lowest in the world.

    I have read that there are parts of Japan, where children can hardly be found.

    When the population falls, demand for housing falls. I think many people in Japan are aware of this.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Techno good points. Japan is a koureika shakai, an aging society. Aparently in many country areas there is a sever shortage of young people.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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