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Overseas Property Marketing

Helpful facts to know:

Japanese yen is stronger than ever
Despite the current worldwide economic turmoil, the Japanese yen has attained a strong position compared to most other global currencies. Japanese investors and second home buyers are now able to buy overseas properties at bargain prices; in some cases as much as 30-40% off what they were just a few years ago. This situation has inspired many Japanese property buyers to look abroad.

The largest amount of savings in the world with zero interest
Japanese people have the highest amount of savings compared to any other country; approximately $15 trillion US dollars worth (3 times Japan's GDP, almost equivalent to the US GDP). However, Japan has experienced historically low interest rates on savings, near zero percent. So many Japanese tend to move extra money overseas to take advantage of safe international investments with higher yields.

Investments abroad
Japanese are becoming more comfortable when it comes to international deals. According to annual IMF reports, Japan has been the top net asset country for 17 years, owning the largest base of net assets worldwide for almost two decades (defined by all Japanese assets owned outside of Japan, inclusive of companies and people, minus debt). Also, since April 2008, the Japanese government decided to allow Japanese REIT's to include property investments in foreign countries.

Japanese people love to travel overseas
Over 16 million Japanese citizens travel aboard each year, representing 13% of the Japanese population. Remember, Japan is an island nation. In Japan, going to a foreign country means to travel overseas; not like in many parts of the world where it is possible to take a short drive across the border; like going from the US to Canada, or from Germany to France.

Most Japanese have a strong interest in foreign countries. They travel worldwide for their vacations and for business purpose. Japanese also travel overseas to visit their friends, family or company colleagues; who reside abroad. More than one million Japanese people live outside of Japan.

Baby boomers seek new life in foreign lands
Japanese baby boomers are now entering the golden years of retirement. A unique Japanese custom is for long standing company employees entering retirement to receive an extra large bonus at the end of employment. The average amount is enough to buy a new home in a reasonably priced area. This age group also has a high rate of savings and a large portion of them have fully paid off their homes. They now have time and money to truly enjoy life. Many are very interested to experience life abroad; wishing to enjoy a completely new experience there. The current trend is that a growing portion of capable retirees, consider moving to a foreign country and planning for an extended stay there.

Value of real estate in Japan
Japan has a very serious decreasing population problem which is not being alleviated by immigration, due to highly restrictive government immigration laws. The population is doomed to decrease. One of the key issues affecting real estate values is population growth. Tokyo is the only Japanese city believed to provide appreciating real estate values in the future.

The need to minimize risk factors
The recent impact of depleted natural resources and the food shortage crisis, have presented a wake up call to many Japanese consumers. It was a bit of a shock because many people suddenly realized that Japan could be in serious trouble; more than other countries. Japan has the highest rate of importation of natural recourses and food amongst OECD countries. Local news, media, and TV shows, have continued to focus on the increasing cost of living and shortage issues. A second place abroad, just in case, is a natural consideration for wealthy people.


Overseas Property Marketing