Japan

The Residential Real Estate Market in Japan: Why Now is the Time to Buy?

Property investors are flocking to secure a piece of Japan’s real estate industry ahead of the 2020 Tokyo Olympics.

Naturally, this means a lot of activity by larger, wealthier, and more well-connected investors —however, smaller buyers may soon find themselves empowered to ride the wave thanks to recent developments in technology.

In this article, we’ll be explaining the reasons behind the health and appeal of the real estate market in Japan, and how investors of all sizes and backgrounds can share in the gains.

“Abenomics” and the Three Arrows of Progress

When Japanese Prime Minister Shinzo Abe took office in 2012, he set a new direction for the country’s economic fate. Abe’s expansionary plans, dubbed “Abenomics”, aimed to revitalize Japan’s markets through the use of three measures (“three arrows”) of policy: currency devaluation, greater infrastructure spending, and quantitative easing.

By weakening the yen, lowering exchange rates, and jump-starting the industries for real estate and construction, Abenomics turned Japan into fertile ground for local and international investors.

While the overall impact of Abenomics has met its fair share of criticism, the housing sector has undoubtedly won big. Slow overall growth has done little to stop the steady rise in housing prices over the past few years. If you bought a condominium unit in Tokyo back in 2006, for example, then the value of your investment would have grown by nearly 75% today.

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Image from Global Property Guide

Low interest rates and an exceptionally friendly currency make investment appealing, but ultimately, it was the focus on infrastructure that sealed the deal for foreigners looking to profit off of the Japanese experiment.

Local Demand for Real Estate

Of course, government intervention isn’t the only driver of growth in Japan’s housing sector. Local demand has shifted in the past few years, with more people moving to the country’s urban centers.

Despite its enduring rural tradition, a growing number of Japanese youths heed the call of the city: leaving fields and rivers for streetlights and bullet trains. This decline in rural living is a major force in raising the prices of houses, apartments, and condominiums in the city.

Likewise, an increase in the number of double-income households sees more families looking to live closer to the office—aiming for housing within Japan’s numerous commercial hubs instead of facing the challenges of the daily commute. The desire to work close to home is universal, and Japan is experiencing a surge in demand for more accessible living spaces to the benefit of those with the opportunity to provide them.

Finally, demand for housing is on the rise as an externality of the increase in foreign investment that we explained in the last section. As more foreign businesses set up shop on Japanese soil, executives and employees find themselves needing somewhere to stay. By boosting the demand for housing, investors and the people they’ve employed make Japan all the more lucrative for capitalists looking to join in on the fun.

Tokyo 2020

There’s one more force propelling the market for housing in Japan, and it’s the most dramatic by far. With the Japanese capital set to host the Summer Olympics in 2020, luxury housing projects (e.g. hotels, serviced apartments) are on the rise. The Japanese, alongside foreigners with the money and interest, are laying the groundwork for the most well-attended and high-valued global event until Paris hosts the competition in 2024.

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Image from Mark Szelitowski

Billions of dollars are on the move, and all roads lead to Japan. The country has seen massive deals moving at high speeds in recent times, and it shows no signs of slowing down as the clock ticks towards 2020. Norway’s government pension fund, for instance, has partnered with Tokyu Fudosan to invest roughly $1.2bn in five different commercial buildings ahead of the global event.

Whether the gains last beyond Olympics season is anyone’s guess, but the staggering medium-term growth between now and the competition proper are a sure deal.

Buying Into Japanese Real Estate

Anyone with the means to invest in housing in Japan is moving to get in on the action. This means the stereotypical club of businessmen and corporations shuffling numbers around to the tune of billions: more of the same old song and dance.

However, recent advances in blockchain technology have inspired the personal finance sector to innovate the way real estate is traded on an international scale.

BitOfProperty, for example, is a crowd investment platform that specializes in real estate assets. Our listed properties represent real houses, apartments, and condominiums in countries like Japan, which our users can purchase in shares (or “Bits”) similar to how the stock exchange works. Unlike many other financial tools, however, Bits of property can yield dividends—monthly income that goes straight to investors when the property begins earning rent.

All of this is protected by Ethereum Blockchain to provide users with immutable records of ownership. Once you’ve secured an investment in property through the platform, your investment is safe from theft and any other unsanctioned activity.

We are confident that our own venture into the Japanese housing market will be a success, thanks in large part to our strategic shareholder: LIFULL. By partnering with LIFULL, a reputable and publicly traded real estate and finance firm, we’re making good on our commitment to educate our investors and help them understand more about Japan and its real estate market.

This is just the first of many projects to come from Japan, and the start of a bigger collaboration between BitOfProperty and LIFULL. Soon, the dream of cashing in on Japan’s soaring property market will be open to investors of all sizes—including private individuals who can spend €50 or higher for a cut of the impending windfall. Anyone with a reasonable budget to invest can cash in on an Airbnb unit in Shibuya during peak seasons, or a serviced apartment in the heart of Ginza.

Conclusion

Whatever you might hear about the Japanese economy for better or worse, the market for urban housing is on a steady climb. Thanks to a variety of conditions that make investing in property in Japan a more affordable and comparatively smarter decision than elsewhere in the region, units, homes, and buildings are a hot commodity.

Developments in the personal finance sector make buying into the investment a reality for smaller investors, so time is of the essence. The best time to buy was a few years ago, but the door remains wide open for the enterprising few who are willing to seize the opportunity.

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Meet BitOfProperty in Helsinki

BitOfProperty is organizing an event in Helsinki to give better insight and overview of a current real estate investment opportunity, DepotHouse. We will also cover the situation of current real estate investment market in Tallinn.

The event will take place on 31.10.2018 at 17.30 in Nets building (Teollisuuskatu 21, 00510 Helsinki).

Topics covered during the seminar:

  • About BitOfProperty
  • Real estate market situation in Tallinn
  • General information about DepotHouse investment opportunity
  • Introduction to the developer Koidu Ehitus OÜ
  • Structure of the opprtunity
  • Location of DepotHouse
  • Investment case and various scenarios

Light snack and drinks are complementary by BitOfProperty!

Come join other likeminded real estate investors in Helsinki by signing yourself up HERE

In case, you are unable to join the event on the spot, but you are interested to participate nevetheless, then please let us know via email, team@bitofproperty.com, and we will do our best to connect you via Internet.

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Looking forward to see you at the event!

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Webinar #2 BitOfProperty: Why investing in DepotHouse is a good idea?

After a successful start of our webinar routine, we are happy to announce that Webinar #2 is just around the corner.

During the second webinar, our Co-founder Taavi Pettai will present to you in depth our current ongoing investment opportunity DepotHouse. Investment project with stable passive income guaranteed for the first 24 months in which you can invest starting from as low as 50€.

Topics covered will include the general information about the building, location, its developers, reasons to invest and returns on investment. Additionally to that, Taavi will give a small overview of the market, timeline and exit strategy, structure and security of the investment.

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During our second of the three webinars -“BitOfProperty: Why investing in DepotHouse is a good idea?” you will be able to ask any questions regards the ongoing deal and make sure everything is clear in case you wish to invest. Webinar will go live on October 9broadcasted at 10:00-11:00 Estonian Time (GMT +3). CLICK HERE to access the LIVE stream.

Don’t forget to inform us that you are interested in joining the live stream by sending us an e-mail to team@bitofproperty.com, as well as questions you would like to answer us during the LIVE stream.

P.S. If you wish to see the previous webinar “BitOfProperty: Property investing made simple. DepotHouse deal.” the webinar is accessible HERE.

 

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Real estate seminar 2018. First visit to DepotHouse. Throwback to BitOfProperty’s weekend.

During the weekend BitOfProperty attended “Real Estate Seminar 2018” in Tallinn, as well as had first tour trough DepotHouse.

Starting the weekend with a tour trough DepotHouse, which is currently in the development process with an estimation date by the end of the year. BitOfProperty members together with other property visitors had the chance to see the first sample apartments of DepotHouse, how far the development process has gone and have the chance to visualize how the property would look like when it would be finished. BitOfProperty got confirmation that everything is on schedule and the ongoing deal is following its plan.

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BitOfProperty’s Sunday was occupied by real estate seminar. Seminar was attended by people interested in investing in real estate, while the speakers of the event were professionals from all sorts of different parts of real estate industry. Topics covered at the seminar where legal and taxation aspects of real estate investments. Overall real estate market situation in Estonia and the ongoing trend of small investment apartments, as well as case studies of existing developers and their rental properties. One such speaker was a representative from Koidu Ehitus, developers of our current ongoing deal DepotHouse who was giving an overview of project’s existing development phase, investment opportunities and properties characteristics.

Productive and qualitative time spent for BitOfProperty. Keep tuned for more information about real estate market and our ongoing deal DepotHouse.

 

 

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Webinar #1 BitOfProperty: Property investing made simple. DepotHouse deal.

It is important for any active investor to keep their portfolios diversified, but is real estate investing the right way to go?

Real estate investing can be a good source for passive income and one of the ways how to build up your wealth over the long run. At the same time it might seem that property investing requires a lot of money up front, or it is expected to have a lot of ongoing work after investing.

No doubt, that some part of that is true, but recent time has shown that there are new approaches that simplify the real estate investment process. One of such approaches are provided by BitOfProperty, a real estate investment platform, giving people the chance to invest in properties starting from smaller amounts. With its easily accessible and transparent platform, BitOfProperty provides competitive market opportunities that are typically not available to general public.

This and so much more will be presented to you during the first of the three LIVE webinars – “BitOfProperty: Property investing made simple. DepotHouse deal.” on September 14, making sure that BitOfProperty is the right way for you to invest in real estate properties. Webinar will be broadcasted at 10:00-11:00 Estonian Time (GMT +3). CLICK HERE to access the LIVE stream.

Topics covered:

What is BitOfProperty and how it works? 

Why BitOfProperty is the right way to invest in real estate? 

How is it different from other real estate investing options? 

Our ongoing deal DepotHouse and its charectaristics 

Investment returns of DepotHouse

Don’t forget to inform us that you are interested in joining the live stream by sending us an e-mail to team@bitofproperty.com, as well as questions you would like to answer us during the LIVE stream.

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Everything you wanted to know about BitOfProperty, but were too afraid to ask

Our new investment opportunity DepotHouse is out, great! Seems appealing, but how exactly investing in properties from BitOfProperty platform work? Getting started with BitOfProperty requires just a few steps, here’s how it works:

Sign up

To create a free account, simply click on the „Sign up/Log in“ page and provide us with your full name, email, and password. Next confirm your email by clicking the link in the email received, and your personal BitOfProperty investment account is made!

Profile verification

Profile verification is a mandatory procedure needed for „Know Your Customer“ (KYC) purposes to help us identify investors and assess any potential risks of illegal intentions such as money laundering. Users will not be able to invest nor transfer funds to their account until their profile is verified. Once you have provided us with your details, we will send you an email regarding whether the verification was successful or not.

Properties

We source our properties from individuals, real estate agents/brokers, advisors and key partners, giving you the opportunity to invest in both residential and commercial properties. BitOfProperty will do thorough due diligence process for all properties in order to make sure only the best ones are put on the platform. The process includes a technical inspection and financial calculations to understand the condition of the property and estimated returns. Each individual property page has information about the particular project that will serve you as guidance to making your decision regards to investing.

Add Funds

As mentioned, users will be able to start transferring funds to their wallet once a successful KYC procedure has been carried out. Then you can deposit money by clicking „Add funds“ on the platform’s header. You can always track your funds, money invested, income received, and reserved investment amount by clicking on the „My Wallet“ page. 

Invest

When you make an investment, your share will be calculated by dividing your investment amount with the total investment amount. All purchases are held in line with industry best practices and transacted across the Ethereum Blockchain providing immutable record of ownership and bringing more safety and transparency to the deals. You can always track your investments on the „Dashboard“ page. Additionally, BitOfProperty will send you monthly updates on your investments.

Receive income

According to the share you own, you can expect to start receiving monthly rental income after the first month once the property is bought, as well as  at the end of the investment term once the property is sold.

Still seems too confusing? Contact us team@bitofproperty.com or look up our team members individually – we will make sure all your questions will be answered!

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New project DepotHouse

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BitOfProperty is launching its new project, DepotHouse, on the 29th August 2018. Here we are providing investors with an opportunity to invest in three newly developed, high-quality apartments.

DepotHouse is a unique investment project that will see the construction of 73 fully functional guest apartment and office spaces, with an estimated completion by the end of the year.

The property itself is located on Juurdeveo Street, Kitseküla, a subdistrict in Tallinn. It is within a short walking distance of the city centre, located in a well-established residential area with great public transport links nearby, making it a convenient place to live and commute around the capital of Estonia. For the past few years, Kitseküla district has been constantly improving, and with more commercial buildings planned for the future, the area will continue to develop and realize its potential.

Furthermore, throughout the following years Juurdeveo Street will be reconstructed by the Tallinn City Administration to provide a better living environment for the community, and also make the area more passable for cars and pedestrians.

The furnished studio apartments offer an affordable stay for students and young professionals who are looking to maximise their quality of life. Alternatively smaller businesses can use the studios as offices. Considering the above, we believe this project fits perfectly with our vision. The demand for small studio apartments and offices is strong. The property is a new development, has minimal administration fees and is located in a developing environment,  making the asset liquid and reducing the investment risk. The main reason for choosing this as a new investment opportunity is because of the strong capital growth forecast going forward. Additionally, investors are guaranteed a passive income for 24 months with a 7% return rate.

As our goal is to provide everyone with the opportunity to invest, we allow investments for this project starting from €50.

Further details about DepotHouse will be available on our platform on the 22nd August 2018. This will be a pre-launch period when investors can pre-book an investment via email in one of the three apartments.