Experiences buying property in Japan

Follow this link to some people who have bought properties in Japan. All of these cases represent people who have bought property through the traditional broker market. The problem is they paid maximum price, when they bought of secured property more cheaply through the foreclosed market. There are however benefits to going the private route. When price is no object, or you want a customised property, the private route offers more choice. The foreclosed market however is surprisingly large, and don't under-estimate the opportunity to refurbish the frame of an old home. i.e. We might my place at less than land value. The house was essentially a gift 1 hour from Tokyo. We could have stripped this two story house like our neighbour who paid full (market) time for the same dormitory next door. The previous owner bought that property for just Y2.23 million. I know because I missed out by $1000. :) It was my intention to set up a school to teach investment and English to Japanese kids, as there is a private school next door. I have just one neighbour - the 'distressed' person who sold me the property by default. He is a lovely guy though. Learn more about people who have bought properties in Japan here. The other attraction of foreclosed property is that you can actually buy cheap properties without needing a loan. I just paid Y2.3 million in cash for the 1st property, and we paid Y3.8mil for a second property which was ready for occupancy/rental at Y60,000/month. A lovely place too.

It took me about a week to clean that house up in outer Saitama. Really enjoyed the mountain biking in the mountains around that town. Some of the best trails I've done.

NZ Property Guide Philippine Real Estate GuideForeclosed Japan GuideAuthorAndrew SheldonApplied Critical Thinking | www.SheldonThinks.com

Election implications for Philippines property

I was actually in the Philippines immediately after the election result. Just for 6 weeks mind you, but long enough to observe some of the political play, as well as time for a holiday. I visited Camiguin Island and Puerto Galera. Camiguin Island was recommended to me years ago by a resort developer there. Having been there, it has some attractions, but its way too under-developed. I will publish a separate post on the place, as well as Puerto Galera for property buyers interested in those places.

El Nido, Palawan, Philippines

My assessment of the election is that the economic spending will fall a bit after Arroyo's unsustainable 'spend' on roads. I am suspicious of the new president Aquino's anti-corruption credentials based on some statements, but his appointments look credible. He has conveyed that his economic policy is the same as Arroyo by appointing her finance minister. The Philippines GDP grew 7.1% last quarter....as anticipated by us 18 months ago. The fundamentals for the Philippines are very good. A lot of construction going on, remittances continue, call centre business grows. Expect the poor Aussies and Kiwis, etc to come over for their dental services next, and Americans for their 'uninsured' medical. Out-sourcing continues.

NZ Property Guide Philippine Real Estate GuideForeclosed Japan Guide AuthorAndrew Sheldon Applied Critical Thinking | www.SheldonThinks.com

Election implications for Japanese property

The upper house elections in Japan did not deliver the desired two-house majority for the Democrat Party of Japan. Who is to know whether they will be able to get a reform agenda going. One might hold out for the prospect of defections from the LDP if they prove to be obstructionist. There is a lot of discontent in this country...so reform will come eventually. I think the Democrats are still trying to develop policy. Anyway, yields are ok in Japan. One of my readers tells me they recently bought a high rise building in Osaka offering a 12% yield. No other data that that sorry!

The reason for the decline in support for the Kan-led DPJ administration is talk of an increase in the consumption tax. Clearly people want to see support for consumption or domestic demand to support jobs. Really, however the nation needs to cut costs and raise money from wealthy land-owners who will not be spending anyway. I am not a supporter of taxation, lest not welfare states, however the budget does need to be balanced, and assets ought to be taxed not income in these times. I would not be surprised to see a property tax increase in Japan in order to address the budget deficit. Japan's taxation as a % of GDP is on par with the USA, at 27-28%. I suggest in these times it ought to be taxing assets not private spending, since there is a critical need for it to cut government spending. Taxing assets will place pressure upon asset holders to increase the return on those assets, or dispose of them, such that others might.

Japan has long suffered from a lack of leadership. Kan is accused of speaking idealistically when he mooted the idea of a consumption tax. The problem is not his honesty (i.e. revealing a tax prior to an election), but rather his lack of a comprehensive plan. The problem with Japan is that it lacks 'Western-style' or 'inspired leadership. I don't mean Obama of course.... I mean ME! ME!

NZ Property Guide Philippine Real Estate GuideForeclosed Japan Guide Author Andrew SheldonApplied Critical Thinking | www.SheldonThinks.com

Camiguin Island, Philippines

Visiting Mantigue Island, Camiguin - Mindanao, Philippines

NZ Property Guide Philippine Real Estate Guide Foreclosed Japan Guide Author Andrew Sheldon Applied Critical Thinking | www.SheldonThinks.com