What Is Negative Gearing In Real Estate Investing? “Negative gearing” is when rental income revenue (R) is less than expenses (e.g. maintenance costs [M] and mortgage interest [I]): In other words: R-(M+I)<0 Alternative negative gearing equations also take into account other possible expenses such as council rights, insurance, etc. The result of negative gearing: The [...]
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Warranties For Buyers Many consider a home to be one of the “biggest consumer goods,” even the biggest one. Would you buy a car or a computer without a warranty? Well, what about something that’s 10 or 100 times more expensive? Doesn’t such a purchase warrant a warranty? Good news: there are warranties for buyers [...]
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What Happens To My Assets When I Get Divorced In Japan? Legal disclaimer: We do not assume any responsibility for the following article, about getting divorced in Japan and what happens to the couple's assets. If you have any legal issues, please consult a lawyer. When two people get married, a common vow is “Till [...]
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What Types of Tax Returns Are There In Japan? For many employees in Japan, chances are that they don’t even have to touch tax returns (確定申告, Kakutei Shinkoku). Normally, the employer (or his or her accountant) fills out a tax return for each employee. This is typically “Tax Return A” (確定申告Ａ, Kakutei Shinkoku A), the [...]
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Investors from all over the world invest in Japanese real estate for a myriad of reasons. The most common ones are its high cap rates and low risk. Average returns on investment (ROIs) include 5.5% (downtown Tokyo) and 7% or more in Niseko, Hokkaidō and elsewhere. Higher-return properties also exist (usually with higher risk, of [...]
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Japan has always fascinated James. In his bedroom, he has a giant reproduction of Hokusai’s “The Great Wave Off Kanagawa” on his wall. He spends his free time reading about the great daimyō (feudal lords) and samurai of the Japanese feudal era. On weekends, he practices kendō (traditional Japanese swordsmanship). One day, while procrastinating prior [...]
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Of course, the owner of a piece of real estate wants to protect his property, and the possessions inside. However, there is more to housing insurance than just what he or she owns. One must also consider other parties, as well. For instance, what about liability the owner might have towards others if his/her property [...]
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One morning, James is sitting on a floor chair in his tatami room, sipping green tea and reading Yomiuri Shimbun while intermittently gazing out the window at Mt. Fuji, when suddenly, the whole building starts to sway: gura gura, gura gura. Then the shaking gets stronger: GURA GURA. James runs outside. This is a big [...]
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On November 27, 2019, the government announced huge changes that affect thousands of international real estate investors living in Japan. The changes regard a tax loophole that has previously allowed many individuals to reduce their income taxes payable in Japan. This would further reduce other taxes payable such as Resident Tax, National Health Insurance tax, [...]
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First, two famous quotes: “I hate paying taxes. But I love the civilization they give me” —Oliver Wendell Holmes Jr. (jurist, former Associate Justice of the Supreme Court of the United States of America) “I like to pay taxes. With them, I buy civilization.” —Also Oliver Wendell Holmes Jr. Seems like he couldn’t seem to [...]
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