Pros and Cons of buying back in the US

[Bruce Crawford]

Although I think I have already decided on my actions, I wanted to reach out and get some comments from other BPers. I have been living in Japan for 11 years and recently married. I do not see myself returning to the US, although I am not planning on giving up my citizenship.  I used to own long distance when I lived in the US but sold them all for personal reasons when I moved to Japan (bad mistake, but lessons learned and personal situation required that). 

Should I return to buying in the US or continue buying in Japan (looking to pick up another apartment building within a year)?  Since I won’t be returning, getting the cash out of the US and back to me in Japan when needed is one concern. Since I keep all real estate (and associated credit cards) in a separate account, I do not want to use a credit card to pay for trips etc.  
I already file taxes in Japan and the US, and can get through the taxation on different properties and different depreciation schedules, but wondering if people have any thoughts on the best path forward.  

Appreciate everyone’s thoughts. 

[David Gotsill]

Yo Bruce - 

Invest in both, obviously ;)   How's Tokyo these days?  This doesn't directly address your question, but here are some thoughts:

While I fully agree with the fine gentleman from Hawaii ('sup Kiley?), I'd also consider the current lending environment in Japan.  Fresh on the tails of the Suruga Bank debacle, I understand that Seibu Shinkin is also under investigation.  Seibu Shinkin was another one of the few banks that was willing to lend on investment properties at terms that make it feasible - not the least of which is disregarding Japan's "useful life" tax rules as guidelines for the term of a loan.  

It's my understanding that other banks are also increasingly skeptical of making the loans that exceed the artificial useful life, and that banks are looking for more in terms of down payments.  Anecdotally, I was looking into selling one of my J-properties, and the couple of brokers I spoke to basically told me to hold off because there's no way a buyer could find feasible financing in the current market that would bring me a purchase price to my liking.  I don't think that'll affect a refi now that you have PR.  I presume you have contacts already, but if you need I've worked with Chiba Bank and Yokohama Bank, I'd be happy to introduce you. 

And you've hit on another big issue - how does the foreign national spouse manage US properties when the US citizen dies?  Let me know if you have thoughts there, it's something that's on my mind, and on that of a few of my buddies. 

In the end though, for me I'm skeptical to put my cash into Japanese properties, where you're more likely to see actual depreciation.