There are probably many people who would like to invest overseas, but are unable to take the plunge. For example, if you search for "Vietnam overseas real estate" on Google, you will find 30 million pages, but you probably won't hear of anyone actually investing in Vietnam.
Therefore, this time, I would like to compare and explain real estate in Japan and overseas in order to make you feel more familiar with "Vietnam overseas real estate."
目次
Reasons why real estate investment in Japan fails
・The calculation was not accurate.
・I thought it was a good location, but the university and factory moved there and it turned out to be a bad location.
・The tenant did not come in as expected.
Now, I will explain them one by one.
The calculation was not very accurate.
The first point is that it is necessary to accurately estimate the real yield, but many of the failures were cases where people bought the property based on advertisements from real estate companies such as "yield 8%". Even if the surface yield is 8%, if you take into account the repair reserve fund, management fee, renovation fee, 1-2 months worth of advertising expenses to the rental agency, fixed asset tax, etc., the annual yield will be about 3-4%. It will become.
Furthermore, if there is a period of vacancy, yields will deteriorate. When real estate is newly built, you can get the best rent from tenants, but as the property ages, the market rent becomes cheaper each year. However, information from investment real estate companies may keep in mind that rents will not go down.
I thought it was a good location, but the university and factory moved there and it turned out to be a bad location.
The second point is the issue of location. Almost 80% of real estate value is determined by location. No matter how you try, the location of the property cannot be changed after purchase. If the equipment in your room, such as the kitchen or wallpaper, is bad, you can replace it. Things like the bathroom will cost more to replace, but you can still change things, but you can't change the location. Therefore, when purchasing a property, pay special attention to the location of the property.
In addition, when choosing a suburb for investment, many people choose areas near facilities that attract customers, such as factories, universities, and shopping malls. Japan is currently experiencing a declining birthrate and aging population, and the declining birthrate and aging population is especially serious in suburban and rural areas. It is not uncommon for land prices to drop by 2% every year. Therefore, consider carefully whether or not the customer-attracting facility will be relocated.
The tenant did not come in as expected.
The third point is the problem of attracting customers. Professional landlords have relationships with rental agents, parts and remodeling companies, and have the know-how. However, many of the people who fail in investing are beginners in real estate investing or part-time business owners.
One of the reasons is that they don't have the know-how and don't have friends who can update them with the latest information. Therefore, if you are a beginner, we recommend that you do not invest in too expensive properties, but instead accumulate know-how and value your relationships with people.
Comparative study of overseas real estate and Japanese real estate
The investment estimate is appropriate! ?
The first point regarding overseas real estate is that there are certainly risks. However, unlike the genre of real estate in Japan, overseas real estate has a strong character as an investment. There are REITs, which are real estate investment securities, but overseas real estate is exactly like operating a REIT.
In addition, there is a variety of products within the legal range, including guaranteed yield types, offices, factories, warehouses, and condominiums. Although no country or developer guarantees the principal, there are properties that are guaranteed by companies with higher financial soundness than Leopalace, so we believe they are much safer assets.
For example, there are properties with a 10-year net yield and a 10% guarantee from top companies. Japan's credit rating is currently on par with China, but the United States, Hong Kong, and Singapore are higher than Japan. I think it's a prejudice to think that it's dangerous because it's overseas.
You can invest in a good location in front of the station! ?
Regarding the second point, in developing countries such as the Philippines, Vietnam, and Cambodia, infrastructure will be developed in the future, so it is possible to purchase properties in prime locations such as in front of train stations even now.
If the location is good, the price will be the same as an apartment in Tokyo, but if you think about it, it becomes obvious why prices are so high in developing countries. This is because wealthy people and companies around the world are targeting properties with high investment potential. This is a phenomenon not seen in Japan.
Tenants don't come in unexpectedly! ?
Regarding the third point, there is certainly a problem with attracting customers. In Malaysia and Thailand, there are times when there is an oversupply of apartments, resulting in an increase in vacancy rates. We believe this is a problem that will be resolved if we consider long-term investment.
First of all, what kind of properties are there that have vacancies? Most of the time, these are apartments for foreigners that are too expensive for locals. The salaries of local citizens are rising by about 6% every year in all developing countries. Additionally, developers won't sell apartments where they can't sell. I believe that if we look at things structurally, the vacancy rate can be resolved.
Summary of overseas real estate investment
This time, I have shared my thoughts while comparing Japanese and overseas real estate. In Japan, while there are advantages such as it is easy to obtain loans and it is often seen as collateral, there are also many disadvantages as mentioned above.
Therefore, it is recommended for Japanese people to hold assets overseas as part of their portfolio while earning labor and business income in Japanese yen. Even for today's young people, it is easy to earn Japanese yen as a Japanese person, so I recommend that you move your assets overseas.
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