I am looking for my next property now. I am starting to think again about my strategy. I was thinking that maybe I could buy well in Japan. I have found that there are relatively cheap apartments in Tokyo, but still have excellent rental returns.
I figure that I could rent it to a foreigner without them having to pay the usual 6 months up front. There are already companies doing this in Japan, and I have always wanted to get into myself.
The advantages are:
– I can manage it myself
– I can inspect the properties myself
– Very good rental returns
And the disadvantages:
– Little room for capital appreciation
– What to do with non-paying tenants
– Getting finance
Finance is always a tricky one. I don’t mind actally paying more interest than the usual 1-2% and I wouldn’t be borrowing that much if I use some or all of the cash I have on hand.
Also, if it was successful I could sell the idea on to other foreigners.