Why is investing in real estate in Tokyo so popular in China?

Japan's national land price trend icon (Source: SUNNY Real Estate, Japan)

20 16 Land price statistics of prefectures and counties in Japan (Source: Japan Sunshine Real Estate)

20 16 low-price statistics of various districts in Tokyo, Japan (source: Japan Sunshine Real Estate))

Analysis of China people to buy a house in Japan, nothing more than the following points:

1, asset preservation type

At present, in China, the most painful thing is the middle class with 1-2 property and1-50,000 cash. The reason for the pain is that if you want to invest your money in China, there seems to be no good channel except P2P financing.

There is not enough money to invest in domestic real estate, and the stock market is turbulent. Although the benefits of P2P financial management are good, the future is very uncertain. And if the cash stays in your hand or in the bank, there is a great possibility of depreciation. Therefore, under multiple pressures, we should consider finding a market that can be stably maintained or even appreciated.

Now Europe can't get in (the whole situation is very bad, and the future will definitely be a large-scale collapse), and the United States is also full of uncertainty after Trump takes office. Southeast Asia itself is not a stable market. Australia, New Zealand and Canada are vast and sparsely populated, and the real estate market is not ideal.

20 16 after a series of black swan events, the Japanese market, whether stock market, foreign exchange market or real estate market, rose against the market, which also shows that Japan has been recognized as a global asset haven by global capital hot money. So it is not surprising that China people choose Japan as the first choice for asset preservation.

2. Asset bargain-hunting type

This kind of behavior is generally dominated by the wealthy class or enterprises. The Japanese market has experienced 27 consecutive years of economic decline, and the real estate market is at the bottom. Coupled with the obvious aging, many owners can only sell their products cheaply because of age, health and business problems.

Especially hot spring hotels, resorts, ski resorts, farms and so on. It is an excellent place to bargain-hunting at present. Coupled with the extremely low interest rate of Japanese bank loans, a large number of overseas capital entered.

3. Investment value-added type

This kind of person is generally a person who runs a homestay and seeks the appreciation of real estate. I will talk about this part in detail below.

What are the advantages of Japanese investment in real estate?

1. Is the rental return rate in Japan really high?

First of all, it should be clear that in order to attract China buyers to buy houses in Japan, many places now offer attractive figures such as the annual rate of return of 8%- 12%. In fact, such a rate of return is rare in Japan. Generally speaking, the annualized rate of return (annual rental income/purchase price) of apartments in Japan is generally 5%-7%.

In addition, we should also consider the annual property tax, management fees and other expenses. Generally speaking, we can estimate it by 1.5%. Then the actual rate of return is roughly 4%-5%.

Someone asked, will B&B make more money?

The answer is right. Generally speaking, for a house, the income from being a homestay in short rent may be 50% higher than that from long-term renting-100%. In this way, if you are a homestay, the annual rate of return can be 6%- 10%. Is that so? Actually, it is not. First of all, it is impossible for you to be a short rent B&B hotel to ensure that there are tourists every day.

Moreover, the new Japanese law stipulates that operating a homestay cannot exceed 180 days a year. Plus the operating cost of the hotel. In fact, your annual rate of return can be 5%-7%.

But! Nevertheless, this rate of return is still much higher than that of China. At present, in Beijing and Shanghai, the annualized rate of return is basically 1.5%-2%, and it can reach 0.5%- 1% in the suburbs. Therefore, even though the Japanese real estate rental-sale ratio is not as high as many places boast, it is still much higher than China.

2. Can investment in Japanese real estate appreciate in the future?

This problem should be discussed separately. If it is an ordinary apartment, then I can guarantee that there is basically no room for appreciation (or even if there is, it is very small). The main reason for this situation is that Japanese people don't buy second-hand houses very much.

In Japan, houses are like cars. As long as it is in the hands of users, its value will decline day by day (which is why if you want to consider the benefits of being a homestay in Japan, you should mainly consider old houses. The old house is cheap, but the rent will not be worse than the new one.

Therefore, even if considering the Olympic factors and overseas users come to buy these situations, the increase of apartments in Japan will not be obvious. Single-family villas are even less valuable. Generally, the value of single-family villas is only above the ground, and villas must be rebuilt in 20-30 years.

However, if they change to another dimension, if they buy large-scale products such as hotels and office buildings in Japan, their future income can still be expected. The main judging factor here is the scarcity of resources. For example, golf courses have basically increased by 1-2 times in the last three years. The next low price is above the hot spring hotel.

3. What mentality should China people hold to invest in Japanese real estate?

Explain the original point again: Japanese real estate is used to preserve value, not to appreciate it. If you want to get high returns in just a few years like China, then Japan is definitely not a good choice. The greatest value of Japanese real estate is to ensure that your assets will not depreciate and have a certain surplus. Therefore, if you are a stable user with certain assets and seek stability in the future, the Japanese market is the best choice.