Forums / Property Investing / Overseas Deals / Japan (and its Real-Estate market) Rides Again

Viewing 17 posts - 221 through 237 (of 237 total)
  • Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,972

    Yes very much so.

    I am based in the South of England (In fact Poole in Bournemouth) which is the most expensive place in the Country for property.
    Even London prices aren’t this high and the amount of foreign ownership is incredible.

    We aren’t buy in this area for our forum clients as the returns are not there but between Bournemouth and London so excellent opportunities.

    Cheers

    Yours in Finance
    0-40 properties in a decade. Ask me how.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    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 Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Updated our 2016 Japan real estate property investment strategy. The full info can be found here – Japan Property Purchase Guide – but here are the main takeaways –

    1. Fukuoka’s market, which is still one of the hottest in the country, and has been enjoying constantly increasing interest from foreign investors, is now too hot for its’ own good – as a result, yields are now compressed and approaching Tokyo/Osaka levels of 6% net pre-tax at most – still an attractive market, but down to secondary tier.

    2. Sapporo’s market (Japan’s 5th largest city), while increasing in price over the last two years, has done so quite slowly and, although transaction speeds are very fast and properties often get snatched in a matter of days (sometimes even hours) of listing, it still provides very high yields of up to 11% net pre-tax quite regularly, with 9% being the average.

    3. Other attractive cities providing 7-9% on a regular basis are Kyoto, Kawasaki, Yokohama, Nagoya (which is going through a redevelopment boom these days, so will probably experience at least a slight price rise in the coming year or two), and a host of smaller, attractive profile towns with stable or rising population figures.

    4. Tokyo, Osaka, Niseko (on the Hokkaido ski slopes) and Okinawa remain far too foreigner-saturated and internationally renown to provide any significant yields – strictly a speculative capital appreciation play which, in our experience, may backfire if the economy and re-inflation attempts continue to stall in the years leading to the 2020 Olympics (and definitely beyond that, which is bound to be at least a slight slump).

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Following up on the above, here’s a Sapporo city deal analysis for your review. Still a favourite due to higher yields than the rest of the country can provide, as mentioned above. Similar or higher theoretical yields can be found in smaller townships, but nowhere near the size of this city (slowly but steadily rising towards the 2 mil population mark as of the 2010 consensus – 2015 figures to be released later this year) – and the danger in those locations, as opposed to a metropolitan centre such as Sapporo, is of course the length of vacancies between tenants, which can potentially be longer.

    APR Sapporo Deal Analysis

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Hi Ziv

    Was in Japan for a couple of weeks early this month, I’ll have a read and genuinely cannot see where Japan will grow……pretty dire over there in all the cities i visited.

    Cheers Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
    Email Me | Phone Me

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Hi, Ivan. Hope you enjoyed your stay – which cities are you referring to, and what do you mean by “dire”?

    Certainly, Japan isn’t a growth oriented environment – the population is shrinking/ageing fast,and the economy is struggling to break out of two and some decades of deflation. There are several ways in which many are believing this trend could be reversed,but the current administration seems far too entrenched in old-skool, nationalistic and traditional ways of thinking to make this happen. Until immigration and female work force participation and general satisfaction are tackled, the population (and economy with it) is not likely to stabilize, let alone grow significantly.

    However (and this is a big however) –

    1. The last four years have seen property prices finally rising in all big cities (in some, such as Tokyo and Fukuoka more than in others) – and considering the up and coming 2020 Olympics, will most likely continue to do so at least until then. Last month actually marked the first time prices have been rising nation-wide, as more and more medium cities and townships join the fray. While this doesn’t turn the country into a capital growth market, not by a longshot, it means that those who have entered the market in Tokyo and Fukuoka in the last four years have gained significantly (in the lower brackets, which we normally deal in, practically doubled or more in the most central areas), and those who are still entering slower growth markets (such as Sapporo, Nagoya and Kyoto) are likely to enjoy the same effect in the short term at least.

    2. Small villages and townships which are slowly dying out due to the ageing/declining population issue, are conglomerating into the bigger metropolitan centres, which are actually growing (again, some more than others), and will most likely continue to do so in the next decade or two at the very least (check out that table at the end of the article linked to above for a list of growing population areas – plenty to be had, and Tokyo isn’t even on top of that list).

    3. Perhaps most importantly, Japan isn’t, in our opinion at least, a growth oriented environment. People who invest here diversify their portfolio from speculative, growth oriented locations such as Australia and Singapore, which normally offer very low cashflow, and hedge their portfolio with affordable, high yield properties in Japan, (mostly condos – the last Australian townhouse I liquidated in one of Melbourne’s prime suburbs got me about 12 of these here, all at double the monthly yield or more) which offers some of the developed world’s highest monthly rental returns, coupled with the world’s most docile and hassle-free tenants and business environment.

    Here’s a more detailed explanation – Q&A – Japan’s Debt & Demographic Issues

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Japan Real Estate Property Investment Market – 2016 Summary & 2017 Predictions From Industry Leaders

    Main Takeaways –

    1. Slow growth is expected to continue in 2017 although there are still pockets of opportunities, particularly in hospitality, logistics and Tier 2 cities.

    2. Main cities such as Tokyo, Osaka and Nagoya have registered slight price rises of 0.4-2%. Other hotspots such as Fukuoka city, the country’s western capital and gateway to Southeast Asia sees a similar trend.

    3. Institutional funds and other large scale investors are still more than satisfied with current yield levels, as even these compressed yields offer a far higher return in comparison to their previous portfolio allocations. There just don’t seem to be too many risk-free alternatives globally

    4. Hotels and other hospitality venues continue to attract increasing numbers of international tourists in the lead-up to the 2020 Olympics. This trend is further strengthened by official policies aimed at strengthening the country’s global investment destination status.

    5. Senior assisted living may prove to be the next innovative investment strategy, although attractive models for profitable investment have yet to be created in this sector.

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Quick heads-up for the busy ones among us, who prefer their content via audio – here’s an introduction to Japan’s real estate property investment market (specifically for non-resident foreigners) – you can find more content in the PodCast’s home page, here.

    Enjoy, and a belated happy new year!

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,016

    Great Podcast Ziv – just listened to it.

    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/

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Cheers, mate!

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of EngeloRumoraEngeloRumora
    Participant
    @engelorumora
    Join Date: 2010
    Post Count: 618

    Cheers, mate!

    It’s great to see you on here mate still keeping the overseas section alive lol

    How is mu condo doing?

    I’ll need to come and visit again this year

    Speak soon mate

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Feels a bit like flogging a dead horse, but I’ve got warm sentiments towards this place – this is where it all started for us.

    Condo is good, let me know before you show up, will try to mow down some of those trees to give you a better view of the beach ;)

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of EngeloRumoraEngeloRumora
    Participant
    @engelorumora
    Join Date: 2010
    Post Count: 618

    Feels a bit like flogging a dead horse, but I’ve got warm sentiments towards this place – this is where it all started for us.
    Condo is good, let me know before you show up, will try to mow down some of those trees to give you a better view of the beach ;)

    haha

    Just skim the top of them please.

    I want to have a clearer view of the islands in the distance hehe

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of ShehanShehan
    Participant
    @shehangenghis
    Join Date: 2017
    Post Count: 27

    Hi Ziv,

    so glad I found this podcast very informative

    I just wanted to say thank you and really appreciate the info

    Keen on the due diligence framework I am researching and studying more atm so I can invest internationally

    Anyway thank you !

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Cheers, Shehan, glad you’re enjoying it! If you’re new to international investing, I recommend these articles – most of them aren’t Japan specific, very beginner oriented, and just lay down best practices for any investment destination, including some tips on how to choose where to invest, as well.

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of ShehanShehan
    Participant
    @shehangenghis
    Join Date: 2017
    Post Count: 27

    Fantastic thank you so much !!

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Wow, where are the days when I got flagged for posting an article pointing to our website :D These days even spambots that get reported are still hanging around ;) What happened, admins?

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 516

    Hi, folks – just a heads-up, if you happen to be around SE-QLD or NNSW on August 6th – going to utilise a well deserved family holiday to talk shop with some local investors interested in Japan’s property market – Seminar -Japan Real-Estate for Foreign Investors

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

Viewing 17 posts - 221 through 237 (of 237 total)

You must be logged in to reply to this topic.