Then, before the loan closes, the lender may ask for follow-up data. Likely examples include proof of where a particular deposit came from or a letter from your employer explaining discrepancies between your year-to-date income shown on your paycheck and the amount you actually earned over the most recent pay periods (a common issue as workplaces have raised and lowered people’s salaries with fluctuations in the economy).

Before entering the apartment and falling in love with everything it has to offer, you must take a look at the surrounding of the building. If the apartment is not located in a good neighborhood or if it is located somewhere that doesn’t have enough amenities or a good amount of infrastructure, you should definitely consider relocating. In fact, the location alone determines whether or not you should be interested in the apartment. In a sizeable number of cases, apartments that have stellar interiors don’t look as good as they are supposed to. Consequently, such Tokyo apartments for rent are given for throwaway prices.

Once you have confirmed the location, the next aspect that you might need to pay some attention to would have to be the features and amenities that you might be getting with the apartment. If possible, get the feature listing of the place before you actually get there so that you won’t be disappointed. One strong aspect of these Tokyo apartments for rent is that you can be assured of getting all the features that you could possibly dream of at a price that is too hard to believe. In fact, the feature list alone might be reason enough for you to blindly sign the contract, although it is best if you don’t do such a thing!

Budget is another key issue when renting apartments. When you are renting a place, it can be tempting to go overboard and get an apartment that you couldn’t have even dreamt of buying on your own. However, doing so will be disadvantageous to your finances as you might end up spending an enormous amount of money trying to pay the rent alone. Hence, it is best if you avoid this problem altogether and instead go in for something that is affordable and has all the necessary features to keep you happy. There are a number of good Tokyo apartments for rent which offer all of these features and are definitely within your budget. You just have to look for it.

Initially it was investment by foreigners mainly from Australia driving land and property prices; your average husband and wife investor with an interest in snow sports looking to take advantage of the equity that had been established in their family home.

However, in the last 12 months has seen a swing to other Asian and European markets, such as China, Malaysia, South Korea, Russia and the United Kingdom. Along with this swing has also generated interest from international resort corporations such as the Hilton Group, AP Land and Capella Resorts – the big players in the resort industry have arrived.

With the arrival of these international resort corporations into the outer areas of Niseko has once again started to drive surrounding property prices upwards with savvy investors looking to capatalise on the big names that have come to the area. Only 12 months prior property prices where nearly a quarter of the price of the main village area.

This trend has also been reported by the two official surveys of land values that are made in Japan each year. One is by the Land, Infrastructure, Transport and Tourism Ministry (MLIT) and is calculated on Jan. 1; the second is by prefectural governments and takes place on July 1.

In each survey, average land prices plummeted for 16 consecutive years from 1992 with the exception of the Niseko village. According to the survey, a sample property in Niseko saw an annual increase in value of 40.9 percent to July 1. This rise is almost entirely due to money flowing in from non-Japanese investors and buyers. According to statistics provided by the town, the number of approvals of new building applications increased in the Niseko area from 95 in 2005 to 121 in just the first five months of this financial year. In 2005 only 11 applications were by foreigners; this year there have already been 70 by foreigners.

With this alarming increase of international investment and investment opportunities has now caught the attention of foreign banks, such as Australia’s Commonwealth Bank, are starting to offer mortgage services in Japan. “We found that there was a fair number of foreigners wanting to buy Japan real estate who couldn’t, or found it too difficult because of language issues, life-insurance issues, residency issues,” said Richard Harris, the bank’s general manager in Japan. Since launching these services in May, they have received 350 inquiries.

You should be asking yourself, “where is this paradise and how can I be a part of it?”

The place is Niseko, Japan and you can be a part of it!

A little about Niseko

“Niseko is Asia’s booming 4 season resort” Situated in Hokkaido on Japan’s most northerly islands, Niseko was once a “locals-only” snow town, but is now being heralded as one of Asia’s foremost resort locations and of the world’s finest ski destinations.

Famous for its breathtaking nature and world class powder snow, over the past 5 years, Niseko has experienced massive growth. Figures speak for themselves, with annual international tourist numbers increasing 14 fold since 2002 (Kutchan Tourism Board).

Niseko’s fame stemmed from its endless showers of feather-like powder snow, however in recent years, the charm of its spring, summer and autumns have been slowly discovered, as it evolves into one of Asia’s premier all year round resorts. Niseko is now host to summer events such as Niseko Cycle Week, Niseko Golf Week and the NAC Adventure Races Series.

A little about the Niseko and Japan real estate market

“Japan, one of the world’s most promising investment destinations” Japan, has the world’s second largest economy, is also one of the world’s most promising investment destinations. After its fall in the 90′s, Japan’s economy has been on the consistent incline and is now making what is reportedly the longest and steadies economical comeback in its post-was history.

With the value of the yen and interest rates still sitting at an all-time low, this translates to increased purchasing power per dollar, presenting foreign buyers with an extremely attractive platform for inbound investment.

Investors have been reaping the rewards from Japan real estate and the Niseko market; it is not uncommon of investors selling property 12 months after purchasing and doubling their purchase price.

Advantages of buying real estate in Japan:

* Low purchase price compared to similar markets in the western world
* Weak Japanese yen versus international currencies, giving you more purchase power for your dollar
* Strong rental returns in tourism destinations like Niseko
* Selected real estate agencies in Japan are set up to help foreigners invest in Japan
* Strong capital gains on resale
* Continually increasing into a world renowned tourism destination
* Low yen interest rates available
* Real estate in Japan that you own can be used as a holiday destination for you and your family
* Large international corporations are continually recognizing Japan as an investment and tourism destination and establishing themselves in Japan as quickly as possible.
* A lifestyle investment that is affordable, profitable and a secure investment in your financial future.

Unfortunately, gaining such an understanding can be difficult, given that foreclosure laws vary from state to state. The process can be quite different from one state to another, and these differences will largely determine the proper course of action for a homeowner.

Foreclosure Laws in California

However, as an example, let’s examine the foreclosure laws in the state of California and how they impact the potential time line for foreclosure by the bank, and the eviction process if things progress to that level. Keep in mind that the timeframes stated here are merely what is possible. Your particular lender may not operate completely according to this schedule.

1. In California, after 90 days of non-payment on your mortgage, California foreclosure law allows the bank to record a Notice of Default.
2. After an additional 90 days, the bank is allowed to record a Notice of Trustee’s Sale.
3. 21 days later, it is possible for the bank to sell your home at a foreclosure auction. This could result either in the bank finding a buyer for the home, or if the home does not sell at auction the bank could take the property back as an “REO”, or real estate-owned property. If your home sells at auction, at that point it could be nearly impossible to retain your home.
4. If the bank does take the property back as an REO, the bank’s asset manager may offer what is known as a “cash for keys” deal. Basically, the bank offers from $3,000 to $5,000 for you to voluntarily move out of the home within 3-4 weeks. After you have vacated the property, the agent for the bank can list the property on MLS for sale to the general public.

Once the process of selling your home is initiated by the bank, there are various methods available at your disposal to stop it, assuming that you are looking to buy enough time to work out a resumption of payments with the bank.

Bankruptcy

One option to stop the sale is filing bankruptcy. This creates an automatic stay on the foreclosure process. Unfortunately, this doesn’t always work as a long-term solution because a bankruptcy designed to allow you to keep your home often will require you to resume payments at the same amount you were at before going into default, plus more in order to pay off your arrears over three to five years. Obviously, unless your income has been restored to prior levels, this often is not a workable scenario.

Litigation

The only other way to force the bank to stop foreclosure is to sue the bank and get an injunction to halt the process. There are only a few possible grounds on which you can file such a suit, including statutory violations or mistakes during the foreclosure proceedings, and common law violations such as violation of the HAMP program, fraud, or breach of contract.

For any of these options, it is imperative that you seek advice from a qualified expert in the foreclosure laws of your particular state.

Find an Accessible Neighborhood
If you are foreigner in Tokyo, one of the earliest obstacle you will face is to find accommodation in a neighborhood that is well-connected. As an alpha city, Tokyo is expensive and this suggests that property too is heavily priced. If you have to find an apartment for rent in the heart of the city, then you will obviously have to pay a hefty sum and this can burn a hole in your pocket. The trick is to find a balance between connectivity and affordability. While considering the different neighborhoods in Tokyo, you could possibly try finding affordable housing in old downtown neighborhoods like Ueno and Asakusa.

Consider Your Maximum Budget
As a foreigner, whether you are looking for Tokyo apartments for rent or Kuala Lumpur apartments for rent, it is important that you plan out your budget. While deciding on the maximum you can stretch in your budget, ensure that you do not exceed 30% of your monthly income. Only this can ensure that you are left with enough to take care of your other essential needs in one of your other expensive cities like Tokyo. You must also make sure of the total amount of rent you pay before you actually sign an agreement. Lease payments, apart from the initial advance money, involve management fees, service costs and a non-refundable deposit called ‘key money’.

Decide on the Type of Accommodation
Over the years, the city of Tokyo has come to house different types of accommodation. Mansions, apartments and single-household structures are commonly found in the city. The kind of accommodation you want is also closely related to the budget you have prepared. Just for your information, apartments and houses that have existed for more than 10 years typically cost less. The ideal way to find older and cheaper accommodation is to contact a real estate agency or an independent agent.

Be Sure of the Lease Period
Be it for rented Tokyo apartments or Kuala Lumpur apartments for rent, it is important for a foreigner to have an accurate idea about the lease duration. On an average, property owners in Tokyo prefer not to lease out if the length of stay is less than a year. The tenant typically has to move in within two weeks of signing the agreement.

Living in a different country can be a challenge for anyone, so realizing that the Japanese are very particular about their customs and correct manners is very important. As a foreigner it is important that you become familiar with the basic rules of Japanese society.

While many of their people will cut a foreigner some slack on incorrect etiquette, if one performs something that is extremely disrespectful, then it might not be overlooked. Additionally, it is in your best interest as well to learn a little bit about the rules of a country that you are visiting or planning to live in.

An example of a Japanese culture difference involves entering a home. In Japan it is expected that outside shoes will be removed. The host then provides slippers for the guests to wear. Many people are aware of this custom of theirs; however, there are other shoe etiquette customs that are required in Japan that are not as widely known. For example, another Japanese society custom requires that any room with a tatami floor is to only be stepped on with socks or bare feet. Additionally, there are special slippers that are to be worn exclusively in the bathroom.

While it is important to try and learn as much about a new culture as you can, it would be impossible to think that you could learn everything about a totally new culture right away. This is true for anyone trying to integrate into Japanese society as well. If you have had extra time or exposure to a particular way of life, then it might make it easier for you.

For someone who is transplanting from a western country to Japan some customs will seem more foreign and some might seem more familiar. For example, in western culture it is considered bad manners to blow your nose at the dinner table, and this is indeed true in Japan as well. As time goes by it will become easier and easier to integrate into the new culture and you will no doubt find that living in Japan is easy.

While many westerners are making the decision to move to Japan for either school or work, they are also taking on the challenge of learning a new culture. There are many aspects to the Japanese culture that are extremely different from western culture and can take some getting used to, yet as time goes on it will become easier to integrate into the new culture. Once a person has gotten to this stage, then living in Japan will be much easier for them.

The basic reason for the connection between a bubble and banking problems is over-expansion of bank credit fuelled by the build-up of real estate prices and increasing credit risks. The acceleration of economic growth and increased demand for real estate triggers “euphoria” as households and companies anticipate these further properties’ prices rise and increase their willingness to engage in debt-financed investment.

There is a special thing about real estate lending: as price increases create “an extra” collateral that can be used for additional borrowing.
Increases in the price of real estate property held by companies mean a rise in the value of this asset on their balance sheet. Such capital gains lead to easier access to bank loans, which may be used for new productive investments or more speculative real estate investments. For various reasons lenders may incorrectly rely on trend-based analyses, which assumes that current market conditions continue in the future.

Thus, increased real estate prices, when related to fundamental improvements in the economic outlook or declines in real interest rates, can lead to increased borrowing. Therefore bank lending may also be a source for upward pressure on real estate prices; especially, if banks relax lending policies. Thus, lenders may undertake extremely tolerant lending policies at the peak of the cycle and extremely conservative lending policies at the trough of the cycle.

At the peak of the cycle banks may have borrowers that are highly exposed to a sharp price decline. These borrowers are known as the latest entrants in the real estate markets and they are especially vulnerable, since they have borrowed when prices were close to the peak and possibly expected that the price rally and trend would continue. These borrowers would experience the largest capital losses and the largest risk of default. Once these borrowers stand face to face with the possibility of default, they are also likely to take increasing risk (moral hazard).

Once the peak of a cycle is being approached, real estate prices become increasingly cut off from their “fundamental values” and vulnerable compared to exogenous shocks. The shock can be an unanticipated change in the overall economic performance. This event damages market confidence and causes a capital flight away from the relevant assets. When real estate prices are so high that buyers do not want to buy anymore at this price level, and of course, sellers are not able to sell at his level, there will be market correction – a bubble crashes. The price collapse can be affected substantially by forced sales of properties. The difficulties experienced by borrowers are transmitted to banks. The bad loans of banks and capital adequacy problems may lead to tightening of lending standards and credit rationing.

The next situation was common in Japan at the end of 80′s: Land is the main problem in the non-performing loans held by the Japanese financial institutions. During the period of the bubble economy, banks competed with one another in offering a large amount of loans and accepting the pieces of land as collateral. The combination of low interest rate and abundant liquidity activated real estate investments and affected most sharply on the inelastic urban land supply to generate accelerating in increase of land prices. Increases in the market value of land (land as asset) held by corporations mean a rise in the value of this asset on their balance sheet.

There have been two links between increases in land values and banks’ credit in the Japanese financial environmental. First, banks gave
land-related loans directly to real estate companies or indirectly trough loans to subsidiary companies that are the main loan channels to real
estate companies in Japan. Such lending policies rose very sharply and accelerated joint land and equities asset prices. Secondly, banks in
Japan have traditionally relied on collateral rather than project quality and cash flows. The soaring value of land provided the collateral against which Japanese firms could borrow at home to buy assets abroad.

After the collapse of the bubble economy, however, those pieces of land could not be disposed of in order to reconstruct loans because the prices of the land fell significantly and banks have been obliged to retain the pieces of land with depreciated values. Liquidity was cut back because of restriction policies and the discount rate was raised five times from 2.5 percent to 6.0 percent by the end of 1990. The so-called bad-loan disposal, which is expected to continue for the next several years, is actually nothing, but a higher level of the reserve fund covering the losses of loans.

The reserve fund for loan losses is a fund prepared to cover the losses caused by default of borrowers and it gives favourable tax treatment for such funds. Non-performing loans have not been worked out directly, but reserve funds were raised. This means that the indirect “disposal” of bad loans is officially approved for taxation purposes and the disposal method used for the past several years has simply built reserve funds. In other words, non-performing loans are still recorded on the financial institution’s balance sheets and therefore the amount of bank loans has not been reduced. The real estate market is depressed with the illiquid lands kept idle by banks without being traded in the secondary market.