REI WEALTH MONTHLY Issue 31 - Page 65

FOREIGN INVESTORS APPROACH TO REAL ESTATE INVESTING UNDER $50K PRITI DONNELLY The Prospect Now that you qualify, let’s take a look at properties in the Japan market. Outside of Tokyo you can easily find properties from $30K to $50K. Even more impressive is the yield of 6% to 12% because prices haven't risen as sharply as they have in other cities. For example, in the center of big cities, or first tier cities such as Fukuoka and Nagoya you can expect a yield of 6% to 8%. In second tier cities such as metropolitan Sapporo, you will find properties with a yield of 9% to 10%. In the third tier are smaller As agents/proxies ourselves, we communicate on investors’ behalf townships, good with the property/rent manager, building management company, tax profiles, a yield of 10% to 12%, all authorities, and insurance company. Since non-residents cannot open net pre-tax. With an occupancy local bank accounts, by having a physical address and telephone rate of 93% to 94% properties are number in Japan to manage the portfolio, we are able to pay bills, usually occupied bringing your collect rental income, and transfer/accept overseas funds. In fact, you investment immediate actually never need to travel to close the purchase, unless of course, income of $250 to $400 a mon th you want to take a leisurely trip to take in the culture, historic traditions on average. and breathtaking scenery. Method Tenants To invest in real estate in Japan, Japan is a landlord’s paradise -- high, stable and reliable cash flow, very investors an affordable, and because of Japanese ethics, tenants are polite, docile, an trouble free, and honest. Living away from your investment property, extension of themselves for the you will not need to worry about destruction to your property or property evictions. albeit property work agent/proxy management. with with acting as purchase This is and mainly because of the language barrier. Of course, the same tenant will not last forever but the average turnover is quite stable at 4.5 years for singles' units, and higher for larger family sized units, sometime up to 15 years.