I have been looking on the internet for property in Japan. Some are unbelievably cheap. I know most people don’t agree buying property in Japan is a good idea. Decreasing population, decreasing land values and so on.
However, I believe rather than problems, there could be a lot of great opportunities out there. I can buy a one room studio apartment with a bathroom and kitchen for around $US50K. I believe I could rent it out at around $800-$900 a month. A return of around 20%! Believe it or not, but you can actually rent an apartment in Japan which doesn’t have a bathroom or kitchen!
I have written about the cost renting an apartment in Japan before. By not charging “key money”, I could charge slightly higher rent. Just 4 of these and I could be on the retirement path!
I have read about a foreigner that despite the over-supply in office space in Japan, he buys up the tall and narrow, pencil type buildings and converts them into storage lockers. A great example of turning a problem into an opportunity.
Twitter Updates
I think you have a great idea here. I already did it by buying distressed properties which I rent out and manage. You are correct 4 of these is enough to support a large family which I do. More than that and the taxes take it away, this depends on your area and the investment required. In my case I purchased several distresssed ‘mansions’ and decided firsthand not to pay over $20, 000. I bid on several, some I was successful at, others I was not. Anyway in about a year or so I had enough income from my rentals to be able to retire from my regular job. I actually had to do this because my income got too high and I ended up paying more in taxes and related costs than I was making. It just made more economic sense. Now I just enjoy my life and keep an eye out for any other ‘interesting’ real estate opportunities
Can I ask how you went about organizing finance?
Organizing finance? Well, I just went to the bank and withdrew (actually transfered the money) from my account! Ha! But if you want to talk about loans and mortgages, that is also a way to go. The banks have loosened up some about making loans to gaijin and if you already own property in Japan (which the bank can apply a mortgage to) you shouldn’t have any trouble getting a loan. Personally I chose not to borrow from the bank for any real estate I have bought.