Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
You can view foreclosed properties listed for as little as $US10,000 in Japan thanks to depopulation and a culture that is geared towards working for the state. I bought foreclosed properties in Japan and now I reveal all in our expanded 350+page report. The information you need to know, strategies to apply, where to get help, and the tools to use. We even help you avoid the tsunami and nuclear risks since I was a geologist/mining finance analyst in a past life. Check out the "feedback" in our blog for stories of success by customers of our previous reports.

Download Table of Contents here.

Sunday, March 9, 2008

Foreclosed properties in the Philippines

There are a great deal of foreclosed properties in the Philippines, and like Japan there is a great deal of perceived risk to buying such properties. In reality, the risks are less significant compared to the lack of bargains. The Philippines economy has been growing at 7.6% lately, and the money supply has been growing by as much as 25%, though it has since been slowed by the Philippines central bank BSP. For that reason there is comparatively little attractive foreclosed property inside the National Capital Region (NAR).
Here is a sample of the properties offered in the Paranaque area of NAR. Paranaque hosts about 15 subdivisions, the largest and most prestigious is the BF Homes area. Despite its age, there are still vacant lots for sale. Some areas are more sought-after than others. Because of poor planning, some areas are a little remote from the main roads, and suffer from excessive traffic because the narrow roads are congested by on-street parking and tricycles. The resulting land value is anywhere between 7000-10,000m2 per m2.

There are several readily apparent problems with the BF Homes area:
1. The area has no piped water supplies yet
2. The area has narrow, congested streets
3. The area is unlikely to overcome these problems

For the later reasons I am inclined to think that the best strategy for investors is to avoid old developments, and BF Homes was one of the largest ones. For that reason it has some appeal because it’s one of the most established. It has a sense of community and modern bars and restaurants that might appeal.

We were interested in foreclosed properties in the lower end of the market, and the result of our search was the following list of properties:
1. Townhouse in Paranaque City: Address Unit B6, V.Recto Street, BF Homes, Paranaque. The lot size is 66m2, floor area 160m2, 2-storey concrete brick building, 3bedrooms, 2toilet & bathrooms offered for P2.08million ($US24,000). This property is located in a partially developed precinct close to the shops. The property was spacious inside, though the buyer would be a minority owner of the common area since just one of the 6 units belonging to the owner are being foreclosed. It had good size rooms, though the confined space means there is very little natural light in parts of the building. The block is crowded with no off-street parking. The lack of value value makes this property less attractive, and minority interest in the common area is a reason for concern.
2. House & lot in Paranaque City: Address 21 W.Vinzons Street, BF homes, Paranaque. The lot size was 280m2, the floor area 180m2. It is a 1-storey semi-destroyed building, originally a 3 bedroom home, with 3 toilet & bathrooms priced at P2.5milion. The building is in poor condition, there is structural damage and the roof has been almost completely destroyed. The lot therefore should be valued at land value less demolition & removal costs since there is little opportunity to use the waste as landfill on this level block. This is an attractive subdivision with good access to the main road. The lot is selling for slightly less than land value. It strikes me as easier to just buy a vacant lot.
3. House & lot in Paranaque City: Address 137 Dela Rama & Benitez St, BF Homes, Paranaque City. This 316m2 lot has a 1-storey house with a floor area of 260m2. It includes 5 bedrooms, 6 toilet & bathrooms for P2.7million. The property is in very poor condition so it would require a lot of work to renovate. The biggest problem is the rotting timber in the roof, requiring the replacement of the roof. The kitchen and toilets are old, so they would require replacement. The building structure is good, though the use of space in the house design is not useful. The lot was neighbouring on a poorer area of the BF Homes area, indeed there were ‘slumish’ areas in close proximity to the lot. The building does have attractive marble floors in the foyer, though the wood tile floors in the bedrooms require replacement. The electrical system would require rewiring and you would need to buy water for the next few years until the water authority offers piped supplies. The broken windows might be a testimony to the quality of the neighbourhood, but it does have a structurally sound house close to the main road. Its not the best neighbourhood though, but it might suit a builder who can fix it up over time.
4. House & lot in Paranaque City: Address 209 Ferrari St, Camella Homes, Sucat, Paranaque, lot area 201m2, floor area 140m2, its a 1-storey house with 4 bedrooms and 2 bathrooms. Price P2.5mil. This property was not viewed.
5. House & lot in Paranaque City: Address 135 Pleasure St, Better Living Subdivision, Paranaque. This lot has an area of 240m2, and 225m2 of floor area divided between 2 buildings. The house has 3 smallish bedrooms as well as 2 bathrooms. The kitchen & toilets are old so will require renovation. The property has a great 3-level ‘out-house’ at the back of the property that could offer investment rental as well as a ‘nookie’ with views. The main building needs a new roof, the wood floor tiles would require replacement. The main house had a good size living area. The house is priced at P2.7million, though the property was not readily accessible because of windy, narrow streets congested by tricycles and parked cars. There is very little implied building value to this property. This property I believes offers the best value among those we saw because the removal of the roof presents the opportunity to convert the rooms. I would be inclined to fix the 'nookie' at the back first for living.
6. Townhouse in Paranaque City: We believe there are 2 townhouses here for sale, though we were only offered one. The address is: 76 J.Elizaide Street, BF Homes, Paranaque. The lot area is 222m2, and the 2-storey townhouse comes with 5 small bedrooms & 4 bathrooms. The price is P2.8million. The townhouse to the left requires more work, and in fact the caretaker Ted is living in that one. The electricals appeared to be in poor conditions, and the lights were stripped out, so it appears there were bad tenants in the building. The toilets need to be replaced. These townhouses were on a busy street, though they had a good size backyard. Since these townhouses could be built new for P1.0 million each and the land value is around P1.5mil, they are by no means a bargain, but they suit people who need an instant home and can fix the more dilapidated townhouse.
7. House & lot in Paranaque City: Address 553 St Jude San Antonio Valley I, Paranaque. We only looked at this 300m2 lot from the street because we did not like the quality or position of the building. The 2-storey house has 7 bedrooms and 2 bathrooms within its 221m2 floor area. The property is offered for P3million. This was a poor quality house in a busy backstreet area. Based on limited observation I would not be interested in this property under any circumstances.

The implication of this site visit was that there is unlikely to be much value in the foreclosed properties offered in the Philippines market - its just too late. It seems more likely that there will be more offered in several years. Returning to our home it was apparent that there are greater opportunities in the private market. Home owners dont like to deal with agents, and agents are pretty unethical anyway. A great deal of Filipinos dont have financial literacy skills, so they are all too keen to take the best price offered. If you mount a semi-logical argument and dont comprise you might just get a 'bargain'.

Here is a case in point. A single mother previously married to a foreigner for 3 years. He constructed a nice house in her name, she ended up owning it. She left him, but she can't get a job, so she wants to go off to the USA where she has a job lined up in a casino. She has no money, just the house. She wants some cash upfront, though she would accept a rent-to-own proposition. She needed the money to go to the USA, so she had some urgency. What more could a buyer want. Unfortunately the house is on the main road, so there were other buyers interested.
She did not understand the time value of money, so she was failing to consider any interest in the 'rent to own' payments. There are a great many people who dont have financial literacy skills in the Philippines, generally because in poor countries such desperate people get ahead because they have superior 'social skills'. I have some sympathy with these people because they are struggling to get ahead despite their poor education, so I'm inclined to scale back my 'predatory instincts'. Having said that if they are good people they tend to have the support of friends. Perhaps more likely they are going to be screwed by friends they trust. Fortunately for this girl, she had the good sense to seek legal advice.
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Major cities of Japan

資料:各都市の推計人口(ホームページ) Japan's major cities:
札幌市 Sapporo 仙台市 Sendai さいたま市 Saitama 千葉市 Chiba
東京都区部 Tokyo-23 横浜市 Yokohama 川崎市 Kawasaki 新潟市 Niigata 静岡市 Shizuoka 浜松市 Hamamatsu 名古屋市 Nagoya 京都市 Kyoto 大阪市 Osaka 堺市 Sakai 神戸市 Kobe 広島市 Hiroshima 北九州市 Kitakyushu 福岡市 Fukuoka

Cities and towns of Tokyo

競売物件購入 keibai buttsuken kounyu 千代田区 Chiyoda-ku 八王子市 Hachioji-shi 羽村市 Hamura-shi 中央区 Chuo-ku 立川市 Tachikawa-shi あきる野市 Akiruno-shi 港区 Minato-ku 武蔵野市 Musashino-shi 西東京市 Nishitokyo-shi 新宿区 Shinjuku-ku 三鷹市 Mitaka-shi 文京区 Bunkyo-ku 青梅市 Ome-shi 郡部 Towns and villages 台東区 Taito-ku 府中市 Fuchu-shi 瑞穂町 Mizuho-machi
墨田区 Sumida-ku 昭島市 Akishima-shi 日の出町 Hinode-machi 江東区 Koto-ku 調布市 Chofu-shi 檜原村 Hinohara-mura 品川区 Shinagawa-ku 町田市 Machida-shi 奥多摩町 Okutama-machi 目黒区 Meguro-ku 小金井市 Koganei-shi 大田区 Ota-ku 小平市 Kodaira-shi 島部 Islands 世田谷区 Setagaya-ku 日野市 Hino-shi 大島町 Oshima-machi 渋谷区 Shibuya-ku 東村山市 Higashimurayama-shi 利島村 Toshima-mura
中野区 Nakano-ku 国分寺市 Kokubunji-shi 新島村 Niijima-mura 杉並区 Suginami-ku 国立市 Kunitachi-shi 神津島村 Kouzushima-mura 豊島区 Toshima-ku 福生市 Fussa-shi 三宅村 Miyake-mura 北区 Kita-ku 狛江市 Komae-shi 御蔵島村 Mikurajima-mura 荒川区 Arakawa-ku 東大和市 Higashiyamato-shi 八丈町 Hachijo-machi 板橋区 Itabashi-ku 清瀬市 Kiyose-shi 青ケ島村 Aogashima-mura 練馬区 Nerima-ku 東久留米市 Higashikurume-shi 小笠原村 Ogasawara-mura 足立区 Adachi-ku 武蔵村山市 Musashimurayama-shi 葛飾区 Katsushika-ku 多摩市 Tama-shi 江戸川区 Edogawa-ku 稲城市 Inagi-shi

Cities & Towns of Saitama

競売物件購入 keibai buttsuken kounyu 西区 Nishi-ku 北区 Kita-ku 大宮区 Omiya-ku 見沼区 Minuma-ku 中央区 Chuo-ku 桜区 Sakura-ku 浦和区 Urawa-ku 南区 Minami-ku 緑区 Midori-ku Cities (-shi) さいたま市 Saitama-shi 川越市 Kawagoe-shi 熊谷市 Kumagaya-shi 川口市 Kawaguchi-shi 行田市 Gyoda-shi 秩父市 Chichibu-shi 所沢市 Tokorozawa-shi 飯能市 Hanno-shi 加須市 Kazo-shi 本庄市 Honjo-shi 東松山市 Higashi-Matsuyama-shi 岩槻市 Iwatski-shi 春日部市 Kasukabe-shi 狭山市 Sayama-shi 羽生市 Hanyu-shi 鴻巣市 Kounosu-shi 深谷市 Fukaya-shi 上尾市 Ageo-shi 草加市 Souka-shi 越谷市 Koshigaya-shi 蕨 市 Warabi-shi 戸田市 Toda-shi 入間市 Iruma-shi 鳩ケ谷市 Hatogaya-shi 朝霞市 Asaka-shi 志木市 Shiki-shi 和光市 Wako-shi 新座市 Niiza-shi 桶川市 Okegawa-shi 久喜市 Kuki-shi 北本市 Kitamoto-shi 八潮市 Yasio-shi 富士見市 Fujimi-shi 上福岡市 Kami-fukuoka-shi 三郷市 Misato-shi 蓮田市 Hasuda-shi 坂戸市 Sakado-shi 幸手市 Satte-shi 鶴ケ島市 Tsurogashima-shi 日高市 Hidaka-shi 吉川市 Yoshikawa-shi 北足立郡 Districts (-gun) 伊奈町 Ina-machi or ko 吹上町 Fukiage-machi 大井町 Oi-machi 三芳町 Miyoshi-machi 毛呂山町 Moroyama-machi 越生町 Ogose-machi 名栗村 Naguri-mura

Cities &Towns of Kanagawa

競売物件購入 keibai buttsuken kounyu 県計 市部計 郡部計 横浜市 鶴見区 神奈川区 西区 中区 南区 港南区 保土ヶ谷区 旭区 磯子区 金沢区 港北区 緑区 青葉区 都筑区 戸塚区 栄区 泉区 瀬谷区 川崎市 川崎区 幸区 中原区 高津区 宮前区 多摩区 麻生区 横須賀市 平塚市 鎌倉市 藤沢市 小田原市 茅ヶ崎市 逗子市 相模原市 三浦市 秦野市 厚木市 大和市 伊勢原市 海老名市 座間市 南足柄市 綾瀬市 三浦郡葉山町 高座郡寒川町 中郡 大磯町 二宮町 足柄上郡 中井町 大井町 松田町 山北町 開成町 足柄下郡 箱根町 真鶴町 湯河原町 愛甲郡 愛川町 清川村

Cities & Towns of Chiba

競売物件購入 keibai buttsuken kounyu 県計 市計 郡計 千葉市 中央区 花見川区 稲毛区 若葉区 緑区 美浜区 銚子市 市川市 船橋市 館山市 木更津市 松戸市 野田市 佐原市 茂原市 成田市 佐倉市 東金市 八日市場市 旭市 習志野市 柏市 勝浦市 市原市 流山市 八千代市 我孫子市 鴨川市 鎌ヶ谷市 君津市 富津市 浦安市 四街道市 袖ケ浦市 八街市 印西市 白井市 富里市

Cities & Towns of Osaka

競売物件購入 keibai buttsuken kounyu 総 数 府 保 健 所 計 池 田 池田市 豊能町  箕面市  能勢町  豊中豊中市  吹 田 吹田市 茨木摂津市  茨木市 島本町 枚方枚方市  寝屋川 寝屋川市 守口 守口市  門真市 四條畷 四條畷市 交野市  大東市 八 尾 八尾市  柏原市  藤井寺 松原市  羽曳野市 藤井寺市 富田林 大阪狭山市 富田林市 河内長野市 河南町  太子町  千早赤阪村 和泉和泉市  泉大津市 高石市  忠岡町  岸和田 岸和田市 貝塚市  泉佐野 泉佐野市 熊取町 田尻町  泉南市  阪南市  岬町 大 阪 市 堺市 高槻市 東大阪市  

Cities & Towns of Hiroshima

競売物件購入 keibai buttsuken kounyu 県計 広島市 広島市中区 広島市東区 広島市南区 広島市西区 広島市安佐南区 広島市安佐北区 広島市安芸区 広島市佐伯区 呉市 竹原市 三原市 尾道市 福山市 府中市 三次市 庄原市 大竹市 東広島市 廿日市市 安芸高田市 江田島市 府中町 海田町 熊野町 坂町 安芸太田町 北広島町 大崎上島町 世羅町 神石高原町