Reports that Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is considering tax reforms to curb speculative real estate deals like condo flipping have sparked backlash from property investors. The thread was divided over whether the regulations would actually bring prices down, and how much impact foreign buyers are really having on the market.
MLIT requests tax reform to curb speculative condo trading, aiming to rein in soaring real estate prices
This way to the meltdown
Source: x.com / Original post here
I mean, prices in places like Tokyo and Osaka have gone way too high.
I'm a real estate investor myself, but I'm in the rental business, so this doesn't touch me.
Interest rates are rising too, nobody's gonna buy real estate anymore.
Homebuilders are toast.
Homebuilders are toast.
So does this mean real estate is about to get cheaper?
>>15
Honestly, it'll probably just stop the surge — it won't actually make prices drop
Building materials and labor costs aren't coming down
Honestly, it'll probably just stop the surge — it won't actually make prices drop
Building materials and labor costs aren't coming down
>>20
So it's not like rice, where it just stops selling and prices start dropping
Thanks ("サンガツ" = netspeak for "39" = thanks)
So it's not like rice, where it just stops selling and prices start dropping
Thanks ("サンガツ" = netspeak for "39" = thanks)
>>24
I think new-build prices won't drop, but flip/resale prices will
Since this only regulates short-term resales, after all
I think new-build prices won't drop, but flip/resale prices will
Since this only regulates short-term resales, after all
>>1
Average price of a used 70㎡ condo 😢
Tokyo: ¥120 million
Osaka: ¥52.64 million
Nagoya: ¥29.07 million
Average price of a used 70㎡ condo 😢
Tokyo: ¥120 million
Osaka: ¥52.64 million
Nagoya: ¥29.07 million
>>53
Going by this, Tokyo and central Osaka will probably see prices drop
Going by this, Tokyo and central Osaka will probably see prices drop
>>53
Tokyo's stupidly expensive lol
Tokyo's stupidly expensive lol
>>53
Nagoya's way too cheap by comparison
Nagoya's way too cheap by comparison
Anyway, why do prices even go up that much in the first place
I get this stuff isn't always logical, but I can't understand people dropping ¥100 million on a tiny cramped house
I get this stuff isn't always logical, but I can't understand people dropping ¥100 million on a tiny cramped house
>>58
Same thing happened during the bubble era
What's propping it up is the 'land myth' (the belief that land always rises in value)
That said, it's still cheap from a foreign buyer's perspective
Japanese take-home pay hasn't grown at all in 30 years, so having just condo prices double is brutal
Same thing happened during the bubble era
What's propping it up is the 'land myth' (the belief that land always rises in value)
That said, it's still cheap from a foreign buyer's perspective
Japanese take-home pay hasn't grown at all in 30 years, so having just condo prices double is brutal
Looked it up, and apparently Singapore, Canada, and Australia are doing similar things
Well, I guess housing for citizens comes first
Well, I guess housing for citizens comes first
>>67
Now just add regulations on foreign buyers too, please
Now just add regulations on foreign buyers too, please
Let's raise taxes on stocks too if you sell within 5 years
A lot of TV stations and anime studios make money off real estate too — is it really okay to pop the bubble?
Wouldn't it be better to just give subsidies to people who want to live somewhere but can't afford it?
Wouldn't it be better to just give subsidies to people who want to live somewhere but can't afford it?
>>87
TV stations can go under for all I care lol
TV stations can go under for all I care lol
>>87
That's office leasing, a different thing
That's office leasing, a different thing
>>86
Sounds like you've never been to a shareholders' meeting
Sounds like you've never been to a shareholders' meeting
>>90
Those things are just full of bored old people
Those things are just full of bored old people
Investment purely for flipping doesn't produce anything, so it is what it is
>>94
I'd say it generates a ton of demand and money though
I'd say it generates a ton of demand and money though
Way too many people here just sound like bitter poor folks
If you know it's profitable, why not just do it yourself
If I had a lump sum of cash, I'd wanna do it too
If you know it's profitable, why not just do it yourself
If I had a lump sum of cash, I'd wanna do it too
>>98
Apparently if you're a civil servant you can do it even without a down payment
Apparently if you're a civil servant you can do it even without a down payment
>>103
They're linked, so of course the office market is gonna be affected too
They're linked, so of course the office market is gonna be affected too
>>109
This just strengthens taxes on short-term capital gains from condo sales, so it won't affect office leasing — i.e., the landlord business
This just strengthens taxes on short-term capital gains from condo sales, so it won't affect office leasing — i.e., the landlord business
Mo-san
@murio1999
·
4h
If they tackled the fact that foreigners can buy so easily first, that would help curb the condo price surge too.
Guess there are still people out there who think it's foreigners doing all the condo flipping
Even though MLIT's own statistics show foreign nationals' real estate purchases are only a few percent
@murio1999
·
4h
If they tackled the fact that foreigners can buy so easily first, that would help curb the condo price surge too.
Guess there are still people out there who think it's foreigners doing all the condo flipping
Even though MLIT's own statistics show foreign nationals' real estate purchases are only a few percent
>>121
Feels like the foreign buyer ratio would be high for real estate in central Tokyo specifically though
Feels like the foreign buyer ratio would be high for real estate in central Tokyo specifically though
You just gotta actually manage the property you bought properly
The only ones who lose out are the scum who just flip it
The only ones who lose out are the scum who just flip it
>>122
That's not quite right either
If you seriously run a central Tokyo condo as a rental, the yield (rent ÷ purchase price) ends up around just 1%, so unless you're investing for capital gains, there's no real appeal
Flipping is a legitimate investment strategy on its own, but the gap from actual housing demand got way too extreme
That's not quite right either
If you seriously run a central Tokyo condo as a rental, the yield (rent ÷ purchase price) ends up around just 1%, so unless you're investing for capital gains, there's no real appeal
Flipping is a legitimate investment strategy on its own, but the gap from actual housing demand got way too extreme
*This article is excerpted and summarized from the 5ch (Nandemo Jikkyo G) thread “[LOL] Japanese Government: ‘We’re Regulating Condo Flipping’ → Investors Losing Their Minds wwwwwwwwwwwww”.
Leave a Reply