tripitaka

Those prices would challenge prime real estate right off the lifts in Aspen and Vail!! Crazy.

USD1000 a night! Obviously not at the budget end of the market. However, with the way the dollar is going, they might want to start asking for yen or Aussie dollars. Taking in 90K for three months is pretty impressive. You'll be hard pressed to get that in anything but the top real estate in the best cities in the world.

The Kiwis in Wanaka and Queenstown behave a lot worse than the visiting Aussies. The streets of Queenie on the weekend can seem like Beirut at times.

For all the Kiwis out there, you can claim depreciation (by the Trip definition) on investment properties. However, what you claim has to be paid back if property is sold, so many people owning residential rentals don't bother.

I heard about a real idiot from down-under who decided he would take a snow plough for a joy ride when he was drunk. The Japanese police locked him up for almost a month and then deported him. It's an extreme case, but the cops here can be brutal if you push them. Most of the Aussies I've met are concerned about the bone-heads. The majority are good people.

Yes, this needs to be put to bed. I've received the following from an apartment building owner in Osaka. "Tax relief is obviously not the same as corporate depreciation. Whatever anyone says, there isn't any tax relief for investment properties in this regard."

Originally Posted By: Rag-Doll Originally Posted By: tripitaka Well, it's not good for the 'Yokoso Japan' tourist campaign. The govt is trying to increase the number of foreign tourists. They want the media to talk about how welcome foreigners are. Oh, the Japanese love foreign visitors. It's the foreigners already in Japan that don't like visitors Really? Did you encounter some negativity among the local gaijin? Maybe they were just pissed because they had to got work that day!

SNP, well depreciation is depreciation. I think of it as completely different from "losses" or expenses, i.e., loan repayments, maintenance, repairs, etc. But assuming depreciation is tax deductible, it's in the property owner's interest to take advantage of it. And you're right, I don't really know much about Niseko property and its future potential. It's safe to say that one should look at property from a conservative position.

Well, it's not good for the 'Yokoso Japan' tourist campaign. The govt is trying to increase the number of foreign tourists. They want the media to talk about how welcome foreigners are.

I also thought it was a bit negative towards foreign skiers. It would be nice to hear about some of the positive things that tourism offers.

Mama, at least the property investors might be able to make a claim on the depreciation of the building. The poor banks don't have the same luxury.

SNP, would that mean the sub-prime crisis is not so bad for property owners because they will be able to claim losses against taxable income?

Thanks Wiggs. Nice to hear some specifics. I would imagine that any tax relief in any form is different for buying your own home and investing in a property for gain (in Japan, that is). SNP, thanks for the info about the U.S. and Oz. I'd imagine many people in the U.S. could put in some nice depreciation claims right now.

It is intersting though. By the way, the BBC did a profile on Niseko and Rusatsu last night. They talked about the booming property development. One of the foreign marketing managers at one of the resorts hinted at the need for Singapore and Chinese skiers to keep things "bubbly." They also talked a little negatively about the lop-sided balance between Aussies and local Japanese.

Originally Posted By: Fattwins Thus you wont really get the regular Japanese population to invest in apartments at ski resorts. Yes, whatever the tax break is, it can't be that great if you require exorbitant legal fees to acquire it.

Originally Posted By: Stuntcok Your friend is not as well advised as mine, it seems, as I have many friends depreciating property for tax. It may be that the level of rent or his income tax bracket does not make the fixed cost of advisory worth it. That could be the case Stunts. Could you give me an idea of what kind of threshold we're looking at? By the way you're inferring, it isn't worth the effort for an investor with an apartment or even a few houses.

SNP, I asked a friend who owns an apartment building in Japan for investment purposes, and he doesn't know anything about being able to claim depreciation as a cost for tax rebates. Also, you cannot do it in NZ for property investment, but you might be able to do so if you are running a business of which the building/property is not the core business, i.e., a restuaurant.

Thanks Stunts. I've got it now. We can claim depreciation as a deductible expense. In my limited understanding, that's a massive incentive to invest in property.

I know I'm a moron but hang with me. I understand "depreciation" and/or "impariment". What I don't understand is how you can claim it for a tax refund on an investment property? I thought you could only claim expenses for things like maintenance and rates. Mama, how can you claim depreciation as an expense when your property appreciates? That doesn't make much sense to me.

Stunts, if you don't know "current value", how can you realize depreciation? i.e., Value at time of purchase - current value = depreciation. If you only know purchase price, how can you calculate depreciation? You can't unless you have a property valuation. Rag, I very much doubt you can submit a "depreciation estimate" for tax purposes. And if you can, it would have to be carried out by a registered or official body. Perhaps, the local govt does this, but they would be reluctant to "depreciate" assets as it would affect their income.

In that case, your property would have to be valued annually to determine its value. That's insane!

Originally Posted By: Mamabear You are able to offset depreciation costs against your taxable income therefore reducing your taxable income and saving you from paying it all over to the government of your jurisdiction. A penny saved from the tax man is akin to a penny earnt. Hang on Mama. You're talking about negative gearing, which has nothing to do with "depreciation costs." Also, don't assume the system in Aussie is the same as in Japan. The only possible advantage from depreciation that I think can be gained is decreasing land taxes and/or rates.

Originally Posted By: stillnoprogress Originally Posted By: tripitaka SNP, land prices are only one component of the costs of owning a property. Talk to anyone who has an understanding of Japanese property and they will know what I'm talking about. Successful property investors are usually developers, not buyers. Dude, I'm well aware of the fact that real estate in japan has seen deflationary prices for the last 15 years or so, but to argue that no one has made money in japanese real estate is absurd. I will also just point out that real estate isn't entirely about capital gains and j

They're doing a segment on the quality of snow in Japan that will show Tues night at 21:30 (Japan time).

Originally Posted By: Fattwins Prices will go up and then they will go down and they they most likely will go back up again. That is what investments always do. One fact will remain though the Japanese wont buy those apartments if the foreign market dies. Take Yuzawa for example: you can walk into a modern apartment with a swimming pool and get it for 5million yen. It would seem like a good buy really but yet, there are still many empty places. FT, that's been my experience. I was looking at an apartment in a fading resort town in Wakayama with a marina berth for 5 million yen!! D