Its perhaps surprising we don't see more foreign governments buying foreclosed properties in Japan and NZ at times such as now. The reason I suggest this is because governments have considerable accommodation demands for their staff, and these needs are ongoing. Given that foreclosed properties are so much cheaper than the rest of the market there is a considerable opportunity to save, particularly in the high-end condominium market right now.
The other two countries which are appealing in this respect are NZ and Australia, given that there currencies have sunken to lows. I would caution however that there is no significant discount for Australian and NZ foreclosed property since distressed property is sold through the same channels. The attraction is purely the currency benefit. Foreign governments should recognise that they will never get a better opportunity to buy property in such markets given that growing prosperity in China and India is going to see strong commodities demand in these countries in 5-10 years. There is no rush mind you. In fact the NZ and Australian city property markets have not yet bottomed, but since governments are so slow to act, they should be preparing for this eventuality.
Frankly I don't like doing governments any favours. They are so inept at investment, and remarkably people allow their governments to direct their money. The government accounts for 25-45% of most countries yet government ministers scarcely have any training in money management. So why are they trusted with this task? Go figure. Oh that's right, the system is based on slavery and repression. Sorry, I keep forgetting. In fact foreign governments should be buying property in each others countries to help absorb each others property market overhang. I guess you could argue that they are just displacing tenants, but it does make sense to buy property in Japan and commodity based currencies (Aust, NZ, Canada, South Africa) as there will never be a better chance.
----------------------------------------------The other two countries which are appealing in this respect are NZ and Australia, given that there currencies have sunken to lows. I would caution however that there is no significant discount for Australian and NZ foreclosed property since distressed property is sold through the same channels. The attraction is purely the currency benefit. Foreign governments should recognise that they will never get a better opportunity to buy property in such markets given that growing prosperity in China and India is going to see strong commodities demand in these countries in 5-10 years. There is no rush mind you. In fact the NZ and Australian city property markets have not yet bottomed, but since governments are so slow to act, they should be preparing for this eventuality.
Frankly I don't like doing governments any favours. They are so inept at investment, and remarkably people allow their governments to direct their money. The government accounts for 25-45% of most countries yet government ministers scarcely have any training in money management. So why are they trusted with this task? Go figure. Oh that's right, the system is based on slavery and repression. Sorry, I keep forgetting. In fact foreign governments should be buying property in each others countries to help absorb each others property market overhang. I guess you could argue that they are just displacing tenants, but it does make sense to buy property in Japan and commodity based currencies (Aust, NZ, Canada, South Africa) as there will never be a better chance.
Andrew Sheldon www.sheldonthinks.com
1 comment:
thanks for the great suggestion...
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philippine real estate
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