All Topics / Overseas Deals / Investing in Japan

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  • Profile photo of Pat007Pat007
    Join Date: 2012
    Post Count: 71

    Hey all,
    i know one person on this board is an expert in investing in Japan.. cant recall the name though.

    Anyhow, i have had an offer to get involved in purchasing units over there, small price and sized units but returns scale better when compared to the % of capital outlay.

    However the banking and taxation legal issues when dealing with investments over there are a mystery to me.

    Can anyone enlighten me ?

    Also regarding investment structue, any oppinions on the best approach (so if it were best  to register an LLC, what host country would be best for taxation and the like [like ireland perhaps])

    Profile photo of jayhinrichsjayhinrichs
    Join Date: 2011
    Post Count: 1,177

    zgmen  can help you I have looked at his deal and they seem like solid cash flow deals.

    One thing you will not have to risk is he UGLY us tenant that tears the crap out of your house.

    Japanese are much more civilized in these regards.

    at least thats what perception to a west caost US investor would be… I think its an option for you an dyou should check out zgmen and see if it makes sense for you

    Profile photo of C2C2
    Join Date: 2002
    Post Count: 518

    Be extremely carefully if considering Japan.  There are many sharks and virtually no protection or recourse.

    The general rule of thumb but not always in regards to houses is the following:

    Pay 300K for new house;
    10years later worth 200K
    20 years later around 150K
    30 years later knock it down and build another 300K house.

    You can discount the above rule if a prime location

    The market price is controlled extremely well by agents.  Who are not required to pass on offers to buy and many of them will just try and pick up the houses themselves to sell the following weekend if they can get it cheap enough.  Saw this first hand with my neighbors property.  Real estate agent bought it for low price and sold it shortly later after a small reno for around 100K more.
    Disclosure like in oz is non existent.

    Many oz buyers have been ripped off by aussies selling properties around ski fields.

    Having said that it is possible to pick up cheap houses but on selling can be a big problem.

    Common theme is to go the student accommodation route but as some recently found out the university can up and move to a new location with minimal notice.

    Northern Japan is having a big slump post the tsunami and quake with tourism grinding to a halt and quite a few aussie investors feeling the pinch.

    Pm me if you want me to go over what you have been offerred and I can either check it out or pass it on to others to let you know if it is sound.

    If going to a so called buyers agent get in contact with bonafide customers who have bought in the same area.  It is easy to pick up cheap units in places like Kyushu, Fukuoka etc but there are can be ongoing running costs that are extremely high.  I've even noticed a spiel about  safe radiation levels but no mention of the plant less than 100klms away that leaked water only a few months ago and only 1.8 tonnes of the stuff. 
    Links below:

Viewing 3 posts - 1 through 3 (of 3 total)

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