FREE GUIDE: How to Buy an Akiya in Japan as a Foreigner: stan.store/shumatsuopost ONE MORE SPOT LEFT: Apply for My Exclusive 1 on 1 Coaching - forms.gle/YqZne9DinBLApTPq7
Great video! Love the format! I have never heard anybody being that optimistic about Japan, but more people are probably going to join him in that soon. Exciting times are ahead!
Great video, I've only recently come across your channel, but I'm a big fan. We have a business in Myoko - Japan and I find your videos very interesting and relatable.
I've never really taken the time to view hour long videos, but your interviews are something else. There's one thing I've learnt from all the videos is that you really need to learn Japanese. That does give you a one up over any foreigner relying on just agents or middlemen. Very inspiring videos, thank you, Shu.
I lived in Flushing, each unit of his properties in Flushing are probably being rented for at least $3,000, EASY (it is probably on the $3,500 ballpark) . So he has AT LEAST a cash flow of $18,000 per month, even with an unoccupancy rate of 40%, it's a roughly $11,000 a month. Only this is a HUGE leverage. If he sells, each triplex is worth $6M if he wants to sell it quick...all this he inherited.
So his collateral to buy in Kentucky, were the properties his parents had bought in New York? Plus his seed money from the sale of the Dubai business as his deposits. What sort of loan to deposit ration was he working on?
I did my research last time, it appears that mortgage rates for own stay is below 1%, but loans for investments is 2-4%. We are staying in Fukuoka. Have viewed 1 property to buy for own stay, it has been listed for 9 months and recently they have reduced the price. So am not sure how easy to resell properties here. the property is relatively new (about 6 years old) and u see other properties around the area (which are about 20 years old), most are selling at half the price of the property we viewed. So you will also be worried if prices will fall in 20 years. Another thing to consider is that as a Japanese citizen, ur properties will be subject to inheritance tax if u pass on, which can go up to 55%.. So imagine if u have 5 million bucks worth of property, ur kids will have to fork out 55% of that... =( I think one way to get around it is if u have a company managing the properties? not sure about that as havent researched that far
You don't buy a house in Japan as an investment to resell at a profit. He has mentioned this countless times in other videos. Expect house price depreciation. You make money from renting the place out and hopefully in the end make way more from rent than the lost money from depreciation.
@@maxintos1 i understand that we don't buy a house in japan with the aim of reselling at a profit. Had done my research on it. But to buy one and a decade later have the house value drop 50% is also pretty scary. Takes about 8-9 years of rent to earn that 50%. On top of that if u get rent from property u will need to pay the income tax on that. And japanese income tax can go quite high. Also japanese apartments, the gov has a rule that if 80% of the tenants agree to sell, the building owner has the right to force u to sell. Not v sure if they will force the price down. So it begs the question if property here is a good investment for rental income compared to other places or even index funds, since Shu has mentioned in his previous videos that the s&p has an avg return of 7-9%, its compounded and more liquid. Since ur capial will be tied up for the long term anyway
A Japanese partner is exactly what I am looking for to buy and manage real estate in Japan!!! I have the money to invest, lots of experience in Canada buying/renting/renovating/flipping real estate, and I love Japan.
Shu and Isaac, great video, great journey. Your statement and utopia idea as follows, you have gained capital growth in an existing asset then utilise the market generated equity for your next property. Now i would like to question this concept. Do you actually draw down the capital increase in the asset which means taking out a loan and verifying serviceability for now a much greater debt and then applying this new found income to your next purchase and nodoubt more debt so now your second property is leveraged 100% less the equity from your first property which now has a higher debt? Or do you use the equity in your first priperty as security and borrow 100% on your second property and cross calateralise the debt and revenue over the two properties. Applying this principal where you're constantly leveraged at almost 90% constantly and uf there is a correction in the supply chain or over supply of rental proerty where your rents fall. Hiw do you mitigate this position? What are your short , medium and long term strategies in the proerty market. ? Your investments are what is called a shotgun approach and ingloboland developments. Where you rely on single industry for your supply of tenants as with the fossil fuel sector. Hiw are you mitigating this approach.? My only thinking is these investments are low value investments with little capital input and decent rent cap rate. Remembering the greater the cap rate the lower the capital value. Would you agree with this. Also your currency chart is extremely misleading, the USdollar is a market driven currency where as the chinese rmb is manipulated. And further your comments about BRIC's they cant even agree on a singular currency.
What is the thing from Kyushu that sell for 25 in Manhattan ? I just came from Kyushu & am curious. Vi was also imagining the retro tv show Monkey Magic cld be set there and also Shikoku !? Great discussion 🌞
Owning real estate can be a great dream or a nightmare. If you have lousy tenants then they can be troublesome. The tenants can be good with money and they pay themselves first and can delay paying you rent which could give you trouble if you have a lot of mortgage.
I have a question. Was that apartment building $2.5M with revenue at 5+% but you can borrow 80% at 1.5% amortized over 27 years. Is my math way wrong; it seems his monthly revenue wont cover his monthly loan debt?
I think foreign investors will appreciate property values that local Japanese couldn’t do much to their chagrin. Foreign investors will buy new homes and renovate akiyas to sell or rent to foreigners. This is why I see property in Japan appreciating gradually. I don’t think long term visas are a concern since they will likely rent or sell it…flipping doesn’t require long term visas.
His own chart shows huge growth for the dollar and the chart stops over two years ago! Very misleading. And in 2018 one US dollar bought 6.81 Chinese Yuan. Today it buys over seven!
yeah that chart was misleading although i do believe the principle idea was still ok, the dollar will continue to drop eventually. But since the dollar is strong right now it allows you to get better deals in foriegn markets....maybe his chart was for Chinese investors 😅
Guys, this is Isaac. Glad you caught that, yes the data was from when I was teaching a class a couple of years ago. However the general idea stays that US government will continue to print and now even more nations are circumventing the dollar, thus it is ever more important to know how to combat inflation by investing. Thanks again.
FREE GUIDE: How to Buy an Akiya in Japan as a Foreigner: stan.store/shumatsuopost
ONE MORE SPOT LEFT: Apply for My Exclusive 1 on 1 Coaching - forms.gle/YqZne9DinBLApTPq7
I’ve enjoyed all three of your long form interview videos, keep ‘em coming 😊
Amazing content! Full of good advice and insights. Please continue!!
Thank you! Will do!
Great video! Love the format!
I have never heard anybody being that optimistic about Japan, but more people are probably going to join him in that soon.
Exciting times are ahead!
Fingers crossed!
Great episode Shu! Thank you for sharing Isaac! ✨😉👍
Glad you enjoyed it!
Great video, I've only recently come across your channel, but I'm a big fan.
We have a business in Myoko - Japan and I find your videos very interesting and relatable.
Sounds great! Thanks for watching!
Thank you for the email of this! I never seen a link like that! Pretty cool ✨😉👍
I've never really taken the time to view hour long videos, but your interviews are something else. There's one thing I've learnt from all the videos is that you really need to learn Japanese. That does give you a one up over any foreigner relying on just agents or middlemen. Very inspiring videos, thank you, Shu.
Your channel is so helpful, Thank you Isaac!
Happy to hear that! I've learned a lot as well!
@@shumatsuopost He spoke so openly and elaborated on his failures. True sign of a good person
Amazing RE journey both of you. I am just started investing in RE about 2years ago, still alot to learn. Hoping to connect with you somehow. Thank you
You can do it!
Thank you so much 🙏🏼for this content, WOW….
All the best for your second child .
Thanks for watching!
I lived in Flushing, each unit of his properties in Flushing are probably being rented for at least $3,000, EASY (it is probably on the $3,500 ballpark) . So he has AT LEAST a cash flow of $18,000 per month, even with an unoccupancy rate of 40%, it's a roughly $11,000 a month. Only this is a HUGE leverage. If he sells, each triplex is worth $6M if he wants to sell it quick...all this he inherited.
Thank you for this video!
You bet!
@@shumatsuopost Is there a way to sign up so I can log in on your website? Do you have any consulting services that you offer?
Priceless this interview
Glad you enjoyed it!
Thank you for sharing great content! 😊
Thanks for watching!
Keep the great content coming I’m sure to watch !!
Will do! Thanks for watching!
So his collateral to buy in Kentucky, were the properties his parents had bought in New York? Plus his seed money from the sale of the Dubai business as his deposits. What sort of loan to deposit ration was he working on?
Akila is going to increase in number. I dont see how the Japanese properties price increase when the supply is high and demand is low!!!
I did my research last time, it appears that mortgage rates for own stay is below 1%, but loans for investments is 2-4%. We are staying in Fukuoka. Have viewed 1 property to buy for own stay, it has been listed for 9 months and recently they have reduced the price. So am not sure how easy to resell properties here. the property is relatively new (about 6 years old) and u see other properties around the area (which are about 20 years old), most are selling at half the price of the property we viewed. So you will also be worried if prices will fall in 20 years. Another thing to consider is that as a Japanese citizen, ur properties will be subject to inheritance tax if u pass on, which can go up to 55%.. So imagine if u have 5 million bucks worth of property, ur kids will have to fork out 55% of that... =( I think one way to get around it is if u have a company managing the properties? not sure about that as havent researched that far
You don't buy a house in Japan as an investment to resell at a profit. He has mentioned this countless times in other videos. Expect house price depreciation. You make money from renting the place out and hopefully in the end make way more from rent than the lost money from depreciation.
@@maxintos1 i understand that we don't buy a house in japan with the aim of reselling at a profit. Had done my research on it. But to buy one and a decade later have the house value drop 50% is also pretty scary. Takes about 8-9 years of rent to earn that 50%. On top of that if u get rent from property u will need to pay the income tax on that. And japanese income tax can go quite high. Also japanese apartments, the gov has a rule that if 80% of the tenants agree to sell, the building owner has the right to force u to sell. Not v sure if they will force the price down. So it begs the question if property here is a good investment for rental income compared to other places or even index funds, since Shu has mentioned in his previous videos that the s&p has an avg return of 7-9%, its compounded and more liquid. Since ur capial will be tied up for the long term anyway
A Japanese partner is exactly what I am looking for to buy and manage real estate in Japan!!! I have the money to invest, lots of experience in Canada buying/renting/renovating/flipping real estate, and I love Japan.
Shu and Isaac, great video, great journey. Your statement and utopia idea as follows, you have gained capital growth in an existing asset then utilise the market generated equity for your next property. Now i would like to question this concept. Do you actually draw down the capital increase in the asset which means taking out a loan and verifying serviceability for now a much greater debt and then applying this new found income to your next purchase and nodoubt more debt so now your second property is leveraged 100% less the equity from your first property which now has a higher debt? Or do you use the equity in your first priperty as security and borrow 100% on your second property and cross calateralise the debt and revenue over the two properties. Applying this principal where you're constantly leveraged at almost 90% constantly and uf there is a correction in the supply chain or over supply of rental proerty where your rents fall. Hiw do you mitigate this position? What are your short , medium and long term strategies in the proerty market. ? Your investments are what is called a shotgun approach and ingloboland developments. Where you rely on single industry for your supply of tenants as with the fossil fuel sector. Hiw are you mitigating this approach.? My only thinking is these investments are low value investments with little capital input and decent rent cap rate. Remembering the greater the cap rate the lower the capital value. Would you agree with this. Also your currency chart is extremely misleading, the USdollar is a market driven currency where as the chinese rmb is manipulated. And further your comments about BRIC's they cant even agree on a singular currency.
good advice
Glad you think so!
What is the thing from Kyushu that sell for 25 in Manhattan ? I just came from Kyushu & am curious. Vi was also imagining the retro tv show Monkey Magic cld be set there and also Shikoku !? Great discussion 🌞
Owning real estate can be a great dream or a nightmare. If you have lousy tenants then they can be troublesome. The tenants can be good with money and they pay themselves first and can delay paying you rent which could give you trouble if you have a lot of mortgage.
I'm in Fukuoka City, I've been saying for a while that this is a potential hotspot.
Fukuoka is really amazing!
What about Yokohama?
I can see it. Kyushu in general is amazing. Only problem though is that the summers are hotter and more typhoons there
I have a question. Was that apartment building $2.5M with revenue at 5+% but you can borrow 80% at 1.5% amortized over 27 years. Is my math way wrong; it seems his monthly revenue wont cover his monthly loan debt?
Right now you can do short term bills and treasuries for 5%. That’s very low return
I think foreign investors will appreciate property values that local Japanese couldn’t do much to their chagrin. Foreign investors will buy new homes and renovate akiyas to sell or rent to foreigners. This is why I see property in Japan appreciating gradually. I don’t think long term visas are a concern since they will likely rent or sell it…flipping doesn’t require long term visas.
His own chart shows huge growth for the dollar and the chart stops over two years ago! Very misleading. And in 2018 one US dollar bought 6.81 Chinese Yuan. Today it buys over seven!
yeah that chart was misleading although i do believe the principle idea was still ok, the dollar will continue to drop eventually. But since the dollar is strong right now it allows you to get better deals in foriegn markets....maybe his chart was for Chinese investors 😅
Guys, this is Isaac. Glad you caught that, yes the data was from when I was teaching a class a couple of years ago. However the general idea stays that US government will continue to print and now even more nations are circumventing the dollar, thus it is ever more important to know how to combat inflation by investing. Thanks again.
What is his age?
cant he just put on a headphone so to cut out the feedback?
What is the cost to sign up for your course?
Signing up is free - if you're accepted, it comes with a complimentary initial consultation 😉
@@shumatsuopost I thank you Mr Shu for the time you take to reach out and also make videos to provide the information to others. Stay blessed always.
Agreed that Fukuoka is one the hottest cities in Japan.
It is!
😮
❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️
Thanks for watching!
hmm interesting
It took a Canadian to change an American/Japanese mind about real estate :P 😁
I see you more like a Japanese looking like a Canadian lol
@@shumatsuopost Damn, my cover has been revealed! You're probably 100% correct.
It's hard to listen to this interview, the sound is awful, the guy doesn't have a microphone, and every other word is you know, you know, you know