Interest down to..... 0!

[cal 6]

I see that interest has gone down to pretty much zero in Japan - not that it wasn't close to that anyway.

 

Always funny when I look at my account and I've got like 100 yen interest or something ridiculously low.

 

What's the highest anyone has ever seen it in Japan?

[RobBright 35]

Seen interest or my account?

 

Interest was at 0.6% a few years ago, when the yen was really weak against the pound.

[Yuki's Passion 1]

I dont know the answer to your Q, but I bet you might probably actually earn more by keeping your money under your futon since it would keep you from having to withdraw money and paying a fee to take some out. There really isnt much incentive to have money in banks here. Whats the interest on the Post Office accounts? Its the "highest" right?

 

On the other hand, interest on loans here for houses and cars is quite low compared with the States. So, are you really better off earning higher interest on your savings account but paying more interest when borrowing?

[gerard 6]

The foreign markets seem set to open higher, liking the Japanese move. We shall see in a few moments. What the Japanese move says to me though, is that nobody expects the world economy to do jack-shit and it's all they can do to keep the yen from falling further.

 

But anyway, have a mortgage in Japan on the one hand and a portfolio overseas on the other. That sounds like the best bet. And if you have any yen left over, sell em. Sell, sell, sell.

 

(But I live on Shikoku and I aint no banker neither.)

[Go Native 70]

I'm currently looking into getting a Yen loan to buy another place in Aus. The Aus property market is still doing really well and getting a loan with less than 2% interest seems like a good way to go.

[HelperElfMissy 42]

Makes a lot more sense than getting an AUD loan to buy property in Japan at the moment!

[Go Native 70]

A friend of mine got a yen loan for an Aussie property but he only had a 20% deposit on the place. The loan required he maintain at least 20% equity and this caused some issues when the Aus dollar plummeted. He no longer had 20% equity and had margin calls to top up the deposit. Damn near sent him broke and in default on the loan. We're just waiting on another investment to settle which should give us over a 40% deposit so hopefully won't ever have those issues.

[Mantas 3]

I reckon the Aussie housing market is over valued. Housing affordability is three times harder than in my parents day. Mortgage repayments account for over 50% of the household income. ( 6.8 % bank interest rate). This is reflected in the fact that over half of all home loans issued in Aus last year were interest only. Housing affordability is only just within the grasp of people now, so where are all these buyers going to come from to push the prices up further?

There is an undersupply of housing in Aus. but the only thing putting pressure on prices at the moment is a growing population and immigration. That pressure is very small though.

[indosnm 0]

GN, who are you going through to get the loan? I know a few of the Aussie bank Japan branches offer them.

 

I'm still with you Mantas.. Actually, around here it's cooled off a little but a long way to go.

[Tex 3]

Originally Posted By: ger

The foreign markets seem set to open higher, liking the Japanese move. We shall see in a few moments. What the Japanese move says to me though, is that nobody expects the world economy to do jack-shit and it's all they can do to keep the yen from falling further.

I thought the Japanese government are actually TRYING to devalue the yen?

[Go Native 70]

Originally Posted By: Indo

GN, who are you going through to get the loan? I know a few of the Aussie bank Japan branches offer them.

I'm still with you Mantas.. Actually, around here it's cooled off a little but a long way to go.

I've been getting information from just about every bank that offers Yen loans for property purchases in Australia trying to find the best deal in terms of fees.
We are looking at buying in a coastal town about 1 1/2 hours south of Melbourne. The town is currently going through a boom in new development and price increases mainly due to the seachangers leaving Melbourne to retire on the coast. We won't exactly be getting in at the start of the boom but we already have some significant investments in land in the town. I believe there's still a lot of growth potential over the medium term. For most of the people moving to this area affordability is not really an issue once they've sold up their city property.

Quote:

Housing affordability is only just within the grasp of people now, so where are all these buyers going to come from to push the prices up further?

For those of us lucky enough to get into the property market in the 90's in Aus affordability really isn't much of an issue at all. Upward pressure on prices is also coming from investors like myself. I'd certainly hate to just be getting started now though!

[Chriselle 158]

I've had fabulous returns on land investing in Canada. Just buying some more as we speak. So, I keep my emergency reserve in my Japanese bank accounts but the rest is either tied up in investments or briefly sitting in our Canadian accounts until the next opportunity comes along.

[gerard 6]

Originally Posted By: Tex

Originally Posted By: ger

The foreign markets seem set to open higher, liking the Japanese move. We shall see in a few moments. What the Japanese move says to me though, is that nobody expects the world economy to do jack-shit and it's all they can do to keep the yen from falling further.

I thought the Japanese government are actually TRYING to devalue the yen?

Right.. "to keep the yen from rising further, it should be.

[HelperElfMissy 42]

Originally Posted By: Go Native

I'd certainly hate to just be getting started now though!

Agreed.
My UK family has said for a couple of generations now that the only way the kids manage to get a foot in the door and START with housing purchases is if they get a leg up from the parents (at least a temporary one) - and I think it is heading that way rapidly in Aus.

Demand for housing is still high.
There is a massive shortage of rentals because people need to rent as they can not afford to buy, and yet there are 40 or 50 applicants turning up to open houses for the one property. It has a long way to go in WA before property becomes a bad investment - it might not make you massive capital growth for the next 10 yrs or so....but it is certainly not going to bubble burst and leave you with an unrentable unsaleable property.

[Mantas 3]

Property prices in my little coastal town have dropped 30% from their peak 5 years ago. other areas have had some growth.

MB I f your paying 7 % interest on an investment loan and you have zero growth for 5 years or more. you end up so far behind the eight ball that it does become a bad investment.

[Go Native 70]

You certainly have to research a little to find the places that still have moderate growth potential. It's not a great market for those just getting started but for those already with a reasonable amount of equity there's still some very good opportunities out there. Especially in the $500k+ market. The rich in Aus have mostly only been getting a lot richer...

The WA market will remain bouyant as long as the resources boom continues. The boom though is very reliant on China's growth remaining strong. If China's bubble starts to burst a lot of people in WA would suddenly find themselves out of work I'd think.

The big issue in Aus is there just isn't enough new cheaper housing for those just getting started. And the fact that the current generation doesn't seem to want to work their way up to their dream home over time. They want it all now, the big house in a good suburb with two cars, massive TV, etc, etc. They borrow to the absolute limit of what the banks will let them and then all it takes is interest rates to go up a couple of percent and they're buggered.

The whole idea of starting small and working up to the dream over a period of 20+ years just doesn't seem to be part of their plan.

[HelperElfMissy 42]

Again we agree GN.

 

I have a young friend who was having a whine, about renting and wanting to buy a home, on FB the other day, but when we oldies started giving her encouragement and tips on how to cut down the spending to save for the deposit, moving back home with the folks for a while, getting a 3 x 1 in the mortgage belt first etc etc she deleted the thread after telling us that the government should bring back the first home owners grant and there should be no deposit loans again.

 

Hello GFC mark2!!

 

Mantas, I agree with you in some instances. But there are still a lot of worthwhile investments out there FOR NOW.

[mitchpee 10]

Hell, real estate in the US right now in some areas is super low. Mortgages will always be a bit more in the percentage department, but hey if you can pay down it's worth it here now.

 

Florida is perhaps your best bet. California is going to separate in an earthquake from the US soon anyway

 

I hope to one day get a little plot of land in Japan for myself. Don't really have any material aspirations other than that. Don't care much for cars as long as I can bike/ski and a family is not likely in my future

[mitchpee 10]

Originally Posted By: Mamabear

Again we agree GN.

I have a young friend who was having a whine, about renting and wanting to buy a home, on FB the other day, but when we oldies started giving her encouragement and tips on how to cut down the spending to save for the deposit, moving back home with the folks for a while, getting a 3 x 1 in the mortgage belt first etc etc she deleted the thread after telling us that the government should bring back the first home owners grant and there should be no deposit loans again.

Hello GFC mark2!!

Mantas, I agree with you in some instances. But there are still a lot of worthwhile investments out there FOR NOW.

I think MB and I are the only two people who use 2+ emotes in a single post hahaha

[Go Native 70]

My move to Japan was one of the best financial decisions I ever made even though the move had nothing to do with trying to make money. Housing here (at least here in rural Hokkaido) is a fraction of the cost in Aus. We were able to buy our place outright and still had heaps left over for investing elsewhere. Our house here is unlikely to appreciate at all and mostly like depreciate but in the end it will have saved us a lot of money compared to renting for all the years we've been here.

[Go Native 70]

Originally Posted By: MitchPee

Hell, real estate in the US right now in some areas is super low. Mortgages will always be a bit more in the percentage department, but hey if you can pay down it's worth it here now.

Florida is perhaps your best bet. California is going to separate in an earthquake from the US soon anyway

I hope to one day get a little plot of land in Japan for myself. Don't really have any material aspirations other than that. Don't care much for cars as long as I can bike/ski and a family is not likely in my future

Mitch you could pick up a block of land in this region not more than 20 minutes away from the resort for less than $20,000. You'd probably be able to find some houses in Niseko Town or Kutchan (that might need a little work) for not much more than $50,000-$60,000. Even a fairly new house wouldn't put you back much more than $130,000. It's cheap as chips up here! Compare that to Aus where the average home loan is now something like $300,000!

[mitchpee 10]

Originally Posted By: Go Native

Originally Posted By: MitchPee

Hell, real estate in the US right now in some areas is super low. Mortgages will always be a bit more in the percentage department, but hey if you can pay down it's worth it here now.

Florida is perhaps your best bet. California is going to separate in an earthquake from the US soon anyway

I hope to one day get a little plot of land in Japan for myself. Don't really have any material aspirations other than that. Don't care much for cars as long as I can bike/ski and a family is not likely in my future

Mitch you could pick up a block of land in this region not more than 20 minutes away from the resort for less than $20,000. You'd probably be able to find some houses in Niseko Town or Kutchan (that might need a little work) for not much more than $50,000-$60,000. Even a fairly new house wouldn't put you back much more than $130,000. It's cheap as chips up here! Compare that to Aus where the average home loan is now something like $300,000!

I may just have to look into that while I am over there. Taxes really expensive on a 20,000 plot of land? That may be doable

[Go Native 70]

Taxes would be bugger all on something that cheap.

[Tex 3]

Originally Posted By: Chriselle

I've had fabulous returns on land investing in Canada. Just buying some more as we speak. So, I keep my emergency reserve in my Japanese bank accounts but the rest is either tied up in investments or briefly sitting in our Canadian accounts until the next opportunity comes along.

I get pangs of regret and an ill feeling when I think about some investment opportunities I passed up in Canada some years ago.

If I had my way I would be living the dream in Golden. Though if they had decent Hang Gliding in Niseko I could see myself there as well. Powder, Flying and Golf *deep sigh*

[NoFakie 45]

Originally Posted By: Mantas

Property prices in my little coastal town have dropped 30% from their peak 5 years ago. other areas have had some growth.
MB I f your paying 7 % interest on an investment loan and you have zero growth for 5 years or more. you end up so far behind the eight ball that it does become a bad investment.

To say nothing of taxes on that real estate.