So there’s countless YouTube channels (agencies/born again finance gurus etc) that sell the dream of buying a slice of Japan to foreigners.
They almost always show older and even run down properties and position them as good value compared to USA or other HCOL places and a sound investment.
When I watch these videos, I can’t help but think there is something off about this.
The places are often in the middle of nowhere, 15+ mins walk to the station, and 30-50+ years old.
Am I being overly cynical here?
- per sqft / sqm they’re not cheap
- the older places will decline in value / no local would want to buy as a first option
- the currency risk of yen depreciating
- other unexpected costs of owning a decaying building
- issues with neighbours / local government rules
Etc
There’s a place in kichijoji that was sold for 122m yen / 800k USD. 50 year old mansion / 2LDK
There was also an hour long interview with another guy who sells courses on how he built ‘passive income’ buying 10+ akiya houses…
For investors/people seeking that ‘passive income’ life, it seems like a poor proposition.
For holidaymakers it also makes little to no sense (although yes foreigners might highly value living in a run down country house for whatever reason)…
Often it seems that if you invested that money anywhere else (in a different real estate market/stocks/bonds) the return would be far less volatile/risky and you could then spend whatever return you get on renting / staying in nice hotels instead for your long term Japan trips…
What am I missing?
by Careful-Path-688