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  • Profile photo of davidmarriottdavidmarriott
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    @davidmarriott
    Join Date: 2011
    Post Count: 3
    September 8, 2011 - 6:24 am

    Ian and Terry

    Thank you for your feedback.

    Is Australia not the same or similar? Ie., after 30 years, you would need to renovate or re-build. The building would be too old to hold much value.

    I am looking at Tokyo, inside Yamanote line as I hear the prices hold up the best in this area.

    David

    Profile photo of davidmarriottdavidmarriott
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    @davidmarriott
    Join Date: 2011
    Post Count: 3
    August 25, 2011 - 3:05 pm

    Hi Terry

    Thank you for your reply.

    The only problem with renting is that rent is dead money.

    If you compare annual rental costs, say JPY 2,200,000 over 10 years, to a small decline in value of the property, then the rental cost can be higher than property value decline.

    Eg., for a JPY 70M property, it would need to lose over 20% in value to equate to the cost of rental money. Does property in general, go down so much?

    thanks
    David

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