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Editor's note: If you'd like to learn more about investing in Japanese real estate, you can also read Steve's essay, Six Reasons Why Japanese Real Estate Will Soar. Investing in Japanese Real Estate: The 15-Year, One-Way BetBy
Thursday, May 25, 2006
Japan has zero percent interest rates, and one of the highest savings rates in the developed world... If Americans had that... a mountain of savings and zero percent interest rates... I guarantee you, home prices in America would double from their current levels in no time. Yet in Japan, real estate prices have fallen for 15 years straight... That is, until the latest numbers came out, showing the first gain. To me, Japanese real estate is the “no-brainer” investment of the next 15 years. It's a one-way bet. I believe this not because of the low interest rates or high savings rates, I believe it because of the central bank of Japan's “big dilemma.” You see, Japan's central bank was unable to lift the economy out of a 16-year slide. So this time around, I strongly believe the Japanese authorities will do everything possible to prevent prices from falling... Therefore, it's practically a one-way bet. When you combine that bet with pent-up savings on the sidelines and ultra low interest rates, you have a recipe for one heck of a real estate boom – one that could take many years to play out, and could make you a heck of a lot of money. My investment mantra is to buy when things appear cheap, hated, and in the beginning of an uptrend. It looks like we're getting close, if we're not already there, in Japanese real estate. Buy Japanese Real Estate, Sell U.S. Real Estate
The problem is, Japan's real estate stocks have soared. So the next best option, unfortunately, is probably to buy direct. I don't have the answer yet. But this sure appears to be a one-way bet. We just need to figure out how to play it. It's time for us to head to Japan, and check things out. For this, I need your help... If you're a DailyWealth reader from Japan, or if you know someone who might be able to help us size up the investment possibilities while we're in Japan, please let us know. You can reach us at [email protected]. We'd like to go over there soon. It sure looks like Japanese real estate could be a “one-way bet” for the next 15 years or so. When we know how to play it, we'll let you know... Good investing, Steve
Market NotesTHE LATEST NEWS FROM FLORIDA: ST JOE KEEPS SLIDING
We have an update on Florida real estate today.
For our update, we're checking in with JOE. As longtime DailyWealth readers know, one of our favorite gauges of Florida real estate is the share price of the St. Joe Company (JOE). With miles of panhandle coastline, the company owns 3% of the entire state. Down 43% from its highs… the St. Joe Company (2-year chart):
-Brian Hunt |
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