International Real Estate

[Zeek Collins]

This is my first post so I apologize for my lack of knowledge in the industry. I'm 21 and study airport management. I recently did a study abroad in Japan last year and am sure that you can make a killing in the Japanese market due to the decreased yen value and the lower apartment building costs and real estate as a whole compared to the States. With Japan's population getting older and major cities getting more popular with young people. I have seen some amazing deals around $100,000-$500,000 for 5-16 unit properties depending on the city.  Of course, many more fees go into the final sale of the property but, I still believe it would still be cheaper than trying to buy a home in the US. Japan also does not have laws preventing foreigners from purchasing property in their country. I don't have any capital for the purchase of a property and I fear that I may miss out on this opportune time to get into the market. I've researched a few banks that would offer me a business loan to be able to start a company to purchase property. But, I have to live in the country beforehand to get a loan. I have also reached out to some of the real estate companies for information on insurance fees and rental company costs that go into the monthly operations of apartment buildings. However, without any actual capital; I'm gaining knowledge with no way to take action. I'm hoping that someone here can help assist me in how to proceed with my situation. If you're still reading, thank you very much.  

[Matthew Kwan]

HI Zeek,

The good thing about investing in the US is that you can have a fixed loan rate for 30years which is not common in SE Asia or other countries. You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment. Also, the good thing about primary is that it only requires you to put as little as 3.5%-5% for properties up to 1-4 unit or 0% if you are a VA.

There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow. 

If you are looking to be a foreign investor, I would recommend you looking into Singapore/Vancouver, Canada. There are some good incentives for US citizens to invest in Singapore. As for real estates in Canada, they are currently banning all foreigners to buy real estates in Canada until 2027. Also, there will be a 20% stamp duty tax that imposes on all foreigner investors. However, there is definitely a huge potential especially Vancouver, CA 

Happy to connect and assist you in your real estate investing journey.

@Albert Bui @Carlos Valencia