In recent times I have been suggesting that for a lot of buyers it does not make sense to buy foreclosed property in Japan. People investing funds from countries like Australia and NZ should not invest in Japan at this time unless they want to see their asset value erode over the next 5 years. Even if you are flipping these properties you will pay higher capital gains tax in Japan for short term trading in property.
The people who should be buying property in Japan are those who are living in Japan, earning money in Japan, who retain their savings in Yen. In addition there are those countries whose currencies remain strong against the Yen, who also have the opportunity to invest in Japan. Japan therefore has appeal to the Japanese-based English teachers, financiers (who still have a job) and programmers. Even if you don't plan living there more than 2 years it probably makes sense to buy your own place and renting it out. There are several factors to consider:
1. Japanese interest rates remain at record lows - this has not translated into economic stimulation for other reasons, but recognise that it likely will at some time. Higher interest rates will strengthen the yen at some point.
2. OECD countries which have lowered their rates of late will eventually have to raise them, partly due to inflation, partly because of the normal credit cycle.
3. An eventual recovery in economic activity will strength the currencies of commodity producing currencies, so it might be prudent for people to remit their funds back to Aust, NZ, etc by that time (say 3-4 years). You can pay off an investment property in 3-4 years based on current yields....if you buy the right property.
2.
------------------------------------------------
Andrew Sheldon www.sheldonthinks.com
The people who should be buying property in Japan are those who are living in Japan, earning money in Japan, who retain their savings in Yen. In addition there are those countries whose currencies remain strong against the Yen, who also have the opportunity to invest in Japan. Japan therefore has appeal to the Japanese-based English teachers, financiers (who still have a job) and programmers. Even if you don't plan living there more than 2 years it probably makes sense to buy your own place and renting it out. There are several factors to consider:
1. Japanese interest rates remain at record lows - this has not translated into economic stimulation for other reasons, but recognise that it likely will at some time. Higher interest rates will strengthen the yen at some point.
2. OECD countries which have lowered their rates of late will eventually have to raise them, partly due to inflation, partly because of the normal credit cycle.
3. An eventual recovery in economic activity will strength the currencies of commodity producing currencies, so it might be prudent for people to remit their funds back to Aust, NZ, etc by that time (say 3-4 years). You can pay off an investment property in 3-4 years based on current yields....if you buy the right property.
2.
------------------------------------------------
Andrew Sheldon www.sheldonthinks.com
No comments:
Post a Comment