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Foreigners Injecting the Japan Real Estate

May 27th, 2011 2:17 am

Foreigners and the Japan real estate market – the two sound like unlikely bedfellows, but in recent years their relationship has been the focus of much media attention, especially in alpine areas such as Niseko, located on the northern island of Hokkaido.

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.

Japan Real Estate

April 24th, 2011 11:06 pm

Imagine the joys of an apartment, chalet, house that provides a channel of income whenever you are not staying in it or land that appreciates at a rate that will give you financial freedom upon resale. This kind of place would be beautiful to visit in winter and summer, comfortable and easy to live in, ready for you whenever you want because it would be yours. The perfect getaway for anyone and whenever you want and you can reap the rewards of the continual growth in this property market just like the 100′s of investors that have made massive profits from their investments.

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.

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