- jayhinrichs wrote:But then again 15% and higher is an illusive imaginary figure anywhere as well.
Don’t know about higher, but 14-15% is quite achievable, just takes a few months of waiting and some aggressive negotiation. If you can get more than one property and reduce legal/facilitation fees further you might not even have to wait that long. Ain’t no warzone either, just metro Japan.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
I took a video of a massive thunderstorm in Vegas… They do occasionally happen… A doozie… Hailstorms. 20 minutes later you couldnt tell for love nor money it had happened. Dry as a bone. 4″ a year in zero humidity doesn’t quite quantify as rainin m mind. When you walk outside and have to think twice about what that drop was on you and your first thought is a bird, I will go with that. Don’t get me wrong, I LOVE thunderstorms… Just not as a property owner and I was in the tornado warnings here as well… Even yesterday afternoon here in Atlanta the trees were almost bent double. I used to think Sydney had big storms! Actually every day in Atlanta has that mid summer, boiling hot Christmas day feel to it.
Problem with investing overseas, even the US is where you are adding cross cultural issues and language barriers. It can be tough enough the Spanish/American but I think I would personally baulk further coupling in a potentially greater complication of Japan where, if push came to shove and I had to deal with it I REALLY couldn’t… And too often I hear people saying that there gut tells them “x” and you can say, oh, just pick up the phone, call 3 other vendors. It is too reliant on someone else that I wouldn’t be able to take over.
At least here on July 4th people were accepting we are all siblings birthed from Englband in our legal system.
When I set my company up I did it to enable people to survive in this market with or without me, to teach the skills and just not get ripped off…. I am just not sure Japanese wouldnt end up a prerequisite!
emma171 wrote:too reliant on someone else that I wouldn’t be able to take over…Yup, English, Japanese or Urdu, you can’t remote-manage properties in more than one country if you’re into micro-mgmt, this is all about putting your dd, then faith, into the best team you can get, then “letting go” and just making macro decisions. quite the opposite of “taking over” actually, but leaves one with a lot of time to find the next deals. I’d rather trust the pros any day of the week- one can only be good at so many things.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
I think that carries until you are in a situation where something goes "awry" – it doesn't matter where I have been on the planet – there is just always that point at which you just want to KNOW. It is a difference from micromanaging it is the added assurance that if something DID go wrong, heaven forbid, you COULD deal with it. You could, in the worst case scenario, get on a flight and get over here and actually do something.
Ziv Emma
I think the major cultural difference's in the demograpghy of the tenant base is what makes the japanese investment something folks would want to look at… From what I have read other than the major cities these little cities really offer no up side so they are more like buying and annuity policy.
Now lets take 2 natural disasters and compare what the demographics of the populace did vis a vi Japan, and US.
Lets Compare Hurricane Katrina and the Japanse Tsunami:
Flash back to New Oreleans which has the same demography as Atlanta and most of the neighborhoods that the low end rentals that OZ folks are buying in…..
In New Oreleans when the law broke down , the citizens went native… And this is going to sound shocking to OZ folks but there were over 4 thousand murders in New Oreleans post Katrina… the looting was off the charts the local gangs had open warefare if you remember the cops left the city because they were getting shot at… The rescuers coming in were getting shot at total law less free for all,,, more like what happens in Soweto SA every night that in the US… Then you had the citizens led by their Major blaming the US federal government ( where were you to help us)… Many people ended up in the Superdome (US football stadium downtown New Oreleans) there was 30 murders there and hundreds of rapes as they rode out the flooding.
All this happening in the 90% plus African American population, which is 80% plus of the tenant base in most of the cities OZ investors buy in.. thats just a fact and reality.Now lets look at the Japanese how they act in a disaster like the earthquake tsunami.
No looting,,, no killing one another…. no gangs roaming raping and pillaging… nice tidy lines of people waiting pateintly and politely to get their water bottles filled.
This is the major issue with the tenant.. Base,,, you may not be able to directly communicate… with a Japanese tenant,, But you will not have the out and out disrespect, cunning, caniving lieing cheating US tenant to deal with.
And I remember in one post from and Aussie who said they had what they felt was an irrational fear of Black people in the US..
this is not irrational.. its very smart and one needs to keep at all times there head about them when your in a black neighborhood.. Everyone of my property managers east of the Rockies goes into the field with a Glock or 9mm every one…And for reason…Now don't get me wrong I have 100's of black tenants and they are many the sweetest people on the planet…However by and large your talking the Black Female,,, its the unemployed never employed Late teen to 40 year black male that is a dangerous weapon in the wrong environments… And there is a huge difference between the black populations in the North.. IE Detroit , INDY, Chicago, New York, Pittsburgh, Philly, WA DC.. than the south… the south is the bible belt and 90% of these Black folks have had the Babtist church doctorine pounded into them from birth… Its these females that are god fearing that you stand the best chance. with.. In the North they are not nearly as bible based and its all bets off female to male… You really need to understand how these people live their lives we all live in the same country follow the same laws. However they have a culture that is far different than the White culture , the Mexican culture,,, The asian culture… Every one is different.
If I look at my rent rolls 90% thats right 90% of my tenants of AF folks the lease is only in the females name… the men just come and go.
So in Japan this is just not the case,,, I am not saying everyone should run and invest there, but I do think the PM issues are so far apart as to not be comparing apples and oranges…..
I concur on the ethics… And caliber and with a huge nod to those in TYO, I tried to boil it down to one item and ultimately for me it is simply navigating through… I have looked at other cities when I have lived O/S and it is just the joy of sitting in a room where every document is in a foreign language or you have a meeting and your translator has to repeat everything and half of what you would love to say may or may not be translated etc… But yes, it actually does sund tempting …. Just with that caveat.
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