Thanks, Richard. Interesting – our Aussie clients seem to be happy with 7-8% net pre-tax rental yields on their direct property investments, which present them with a far more hands-on experience and hassle – I would assume to get 5-6% with zero involvement would be attractive – still higher than term deposits and typical Australian property cashflow, not to mention far more affordable?
It is true that USA, Europe, Singapore based investors etc are happier with even lower returns though…Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Thru our Australian AFSL our Retail investors get between 6.25% – 9.09% per annum paid monthly without any involvement and that appears to be about the expected norm. Minimum investment is $20K AUS.
From what I have seen Singapore investors expect a lot more than this.
We are launching a USD Fund in 2019 which our Chinese office will market and that will pay between 5-6% per annum. We cover the hedging cost and they get a monthly return.
Yours in Finance
Yes, agreed that’s doable overseas – I was referring to local, lower risk investments – purchasing and managing a property in your country of residence, or loaning money to someone in your country of residence, or investing in a business in your country of residence etc, provides you with easier and cheaper recourse and securities in case anything goes wrong – and as far as Australian property or property related investments go (as well as Singapore, HK and other well established and stable economies), these returns are quite rare.LanarosParticipant@samsykoJoin Date: 2018Post Count: 1
I read https://tranio.com/articles/top_5_countries_with_the_lowest_mortgage_rates_5108/ that Japan is one 5 countries with the lowest mortgage rates. Does anyone here know anything about it? Is it true?
Very true, as part of the insane QE measures announced here over 5 years ago to try and kick start growth again (which has been successful to some degree), official negative interest rates have been installed – which translate into 1.5-2.5% mortgages.
Unfortunately that’s still not available to anyone who’s a non resident, with some rare exceptions (Bank of China might lend to you if you’re fluent in Japanese or Chinese, and can live with a minimum of about 340,000 AUD per single property, at 50% LTV…)
- This reply was modified 1 year, 6 months ago by Ziv Nakajima-Magen.
Summary/projections for 2018-2019 (collated from ULI/PWC/Mitsui/Nomura/CBRE and others) – Japan real estate property – 2018 summary/2019 projections
Also, big news – finally, Australian lenders agree to lend for Japan investment properties, using borrower’s Australian assets as securities (plus income test of course). This was a long time coming :)
Belated happy new year!fxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114
Not sure if u r still active over here …. but which Aussie lenders lend for Japan properties?
What are the Aust asset securities for? The equity/deposit part or the entire purchase costs of
the property in Japan? What is the max LVR?
Any possibility yet for using Aust equities/cash as deposit and borrow in Japan to buy properties
there? What is max LVR?
Hey mate, yup, still here.
The Aussie loans available are not really mortgages, just equity pulling for whatever purpose, at whatever rates your bank provides, secured against whatever property you may have cleared in Aus.
We’re now in touch with a Singapore broker who can facilitate loans from Japanese lenders, at around 3-3.5%, 60-70% LTV, secured against the Japanese property. The minimum for those are 20 mil JPY (around 250k AUD or so), if you’re interested – they’re called GMG Asia, if you msg me with your email address I’ll put you in touch with their rep in charge of Japan. You’ll have to incorporate in Japan though, which is a few thousand bucks, they charge 1,500 USD setup if the loan can be granted, and the lender another 2% of the loan amount.
- This reply was modified 1 year ago by Ziv Nakajima-Magen.
Hi, folks, hope you’re all staying safe and virus free.
Quick couple of updates –
1. Financing is now available for non-resident foreigners (several lenders, but all seem to be at similar terms – 60-70% LTV, 3-4% interest)
2. COVID-19 has seen market prices, which were getting a bit too hot for comfort in some of the major cities, now back to prices we haven’t seen in the past 2-4 years (depending on location) – very much a buyers’ market atm.
Have a great weekend!