PROPERTY INVESTING IN JAPAN – THE LAND OF THE RISING SUN ZIV MAGEN
field. And, I was willing to "sacrifice" the growth factor, which Japan has seen none of in the last two decades, in
exchange for the healthiest returns any of the four countries could provide.
If capital growth ever returns to the land of the rising sun, as Goldman Sachs, TPG, Price-Waterhouse-Coopers
and many more of the world's bigger players seem to be betting on since 2011, well, that would be the icing on
the cake from my perspective. But, I'm perfectly content with a constant, steady and reliable 10-15% pre-tax per
annum that Japan real estate investing provides, even if that growth never eventuates.
b) Affordability means versatility. Japan, as opposed to Australia, New-Zealand, and DEFINITELY as opposed to
Singapore, which is one of the world's most expensive and luxurious property markets, seemed to offer tenanted
or easily tenanted properties for as low as $20,000 apiece. Compared with the minimum $150,000 (at a serious
stretch) that any of the other countries had on offer, I was looking at 7-8 units, as opposed to a single property
anywhere else. Which, from my perspective, means 1/7 or 1/8 times the risk factor, since, if I lose a single
tenant, I've only lost a fraction of my monthly cash flow. In fact, my portfolio would remain profitable, or at least
break even, should even half of those 7-8 properties stand empty.
And, if I spread those properties out geographically, which is obviously not possible when you own just the one,
I'm quite unlikely to have more than one or two standing empty for any prolonged period of time.
Compare that to where I'd
be
standing
with
the
single, $150,000 property.
If it stands empty for
longer than a month or
two,
my
entire
annual
income could be in the red
as a result. There would
be little, to no, options of
recovery if the particular
(singular) area I chose to
invest in suffers from any
kind of economic, natural
or social disorder for any
prolonged period of time
(see "mining towns", for
instance).