Today we do a DEEP dive into Japan's real estate investment landscape. We discuss what makes it unique, and look at both the buyer's and seller's sides.
My guest is Ziv Nakajima-Magen, the cofounder of Nippon Tradings International - a firm that has helped broker international property deals in Japan for 10 years.
If you're a modern real-estate investor, this is probably the single-most informative piece of content you'll need to understand this market.
1:42 - Bad for capital gains, great for cash flow
3:35 - Why local realtors often don't work with foreigners
8:44 - How an old population and low birth rate affect the market
13:10 - The buildings themselves: legislations, maintenance costs, etc
16:53 - Attractive areas in the commercial sector
23:21 - COVID impact: why the residential sector still did very well, etc
27:56 - Financing and mortgages, both pre- and post-COVID
31:36 - Rents: the numbers
36:22 - Rent negotiation
40:02 - Why people sell despite low capital gains and high cash flow?
44:28 - Who typically invests in Japanese real estate?
51:08 - Other emerging markets like Latin America and Africa
53:31 - Buyer's journey through Nippon Tradings
1:00:19 - Property price negotiation and competition in Japan
1:04:38 - Challenges for Nippon Tradings as a company