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5 Reasons Why You Should Invest Real Estate in Tokyo

Updated: Nov 8, 2021

1.NO Restriction

There's no restriction for foreign buyer/investors to buy properties in Japan. Unlike other Asian countries such as China Thailand, foreigner cannot own land at all; and Vietnam, non-citizens are only allowed leasehold ownership of property, Japan is a freehold market, a place with no restrictions for foreign buyers.

2. JPY Currency: Perfect Safe-Haven Currency.

As a Risk-averse currency, The Japanese Yen just meets these two conditions:

  • The interest rate is stable and low. Any currency with a low interest rate can be a financing currency.

  • The relatively special thing about the yen is that the yen is very liquid. After all, it is one of the three major currencies. 2 . Secondly, interest rates are stable and low

Another feather which makes Japanese Yen so popular among investor Japan is that, Japan is an island country, which is not easily affected by factors such as politics, wars, market fluctuations, etc., and can avoid the risk of devaluation to the greatest extent.

In a word, investing in Japanese properties helps you with your investment diversification.

3. Low Taxes

In Japan, there is a decreased tax rate with property possession. This has drawn in numerous investors, both corporate or individual, to the country.

4. Stable Economic Environment

Many other countries has low taxes for property as well, as one may argue. However, Japan also has a very stable economy. As a developed country, Japan has a reasonable economic structure, a mature economy, and a complete financial system. All these led to stable property prices which will not affected by the government or other forces, thus reducing the risk of owning Japanese capital by form of properties.

5. High Rent-to-sale ratio, and High Residential Occupancy Rates.

Internationally, the rent-to-sale ratio, which is used to measure the good operating conditions of a region's real estate, is generally defined as 4% to 6%. In Japan, this number can be as high as 5% to 8% (before property tax), and even higher especially in Tokyo and cities near Tokyo, such as Saitama and Yokohama.

The occupancy rate in Tokyo is also quite high, comparing to other countries/cities. One of the reason is that Tokyo, as one of the world's most active city, keep attracting people from other place of Japan and from all over the world. We will only expect the residential occupancy rate to increase in the future.

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