Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
You can view foreclosed properties listed for as little as $US10,000 in Japan thanks to depopulation and a culture that is geared towards working for the state. I bought foreclosed properties in Japan and now I reveal all in our expanded 350+page report. The information you need to know, strategies to apply, where to get help, and the tools to use. We even help you avoid the tsunami and nuclear risks since I was a geologist/mining finance analyst in a past life. Check out the "feedback" in our blog for stories of success by customers of our previous reports.

Download Table of Contents here.

Friday, March 12, 2010

Education - a barrier to Philippines development

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Education is a big problem and opportunity in the Philippines. The standards of education are really quite poor. There are numerous facets to this problem, and the biggest perhaps does not start with teachers but with parents. The problem for many parents is creating an environment for learning in the home. The Filipino family is so indulgent and unstructured from my experience. Parents really take no steps to extend the knowledge of their children beyond their own shortcomings. Kids simply run around the yard chaotically. There is no sense of purpose, no plan and no structure. There is also no peace in which to engage in study for those who are able to establish a sense of purpose.
The social context in which kids participate is no better. If kids talk about serious conceptual issues with their children, then they will carry these ideas into the playground. If that education is lacking from amongst the majority of kids, then they will either be alienated for such talk, or they will drift into groups whom they can more comfortably relate. If there is no such group, they are unlikely to develop those skills, unless they are lucky enough to find the company of adults who support them.
From the perspective of formal education, the big problem is the nation's teachers are not particularly well-trained, and the students lack structure and general knowledge. This is going to slow the pace of learning. More particularly it is going to kinder more conceptual development. Abstract and critical thinking skills which play a big part in developing Western education are largely absence. They are not too prevalent in Western cultures either, but in Asia, they are essentially absent.
This is precisely the reason why Asia needs to introduce Western educational standards, and yet in the Philippines the constitution prevents Western interests from participating in education; at least from an equity standpoint. This fact poses a great opportunity cost to Filipinos in several respects:
1. The best and brightest in the Philippines are being denied the opportunity to fully develop their minds. In addition they are made to feel inadequate when they achieve degrees in engineering in the Philippines, then realise their general knowledge is below some technician from a Western nation. They suffer the indignity of having to ask the technician how to do their job, even though they might be getting paid more. They get these jobs in the West only because they are very cheap labour, because there is a skills shortage, or no one will live in the conditions they are willing to tolerate.
2. There are a great many students in Asia (i.e. Not just the Philippines) who go to Western countries looking for a better quality of education. If they take these opportunities, they are less likely to go back to the Philippines.

The implication is that the Philippines is denied better educational standards which would otherwise give their people a better opportunity to earn more money and achieve higher levels of productivity. They are also being negatively impacted in terms of personal or cognitive development, such that when they step out of their 'deprived nation' they are made to feel inadequate or unprepared for their shame of not being given the best chance for success. This is an unnecessary state of affairs, and it is just one of the reasons why the Philippines Constitution needs to be repealed, and a more appropriate framework for personal development established.

Another silly provision in the constitution prevents foreigners from investing in land in the Philippines. As a result, Filipino pastures go under-utilised, development opportunities are overlooked and Filipinos who remain under-employed or unemployed grow impatient waiting for their opportunity. The Philippines as a result has high levels of alcoholism and simply low productivity since many are not raised in a culture where they have had to work.

Andrew Sheldon
NZ Property Guide
Philippine Real Estate Guide
Foreclosed Japan Guide
Applied Critical Thinking, Strategy, Integrity Investments SheldonThinks

Friday, February 12, 2010

The job opportunities in the Philippines

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The appeal of the Philippines is that it is like no other country. Consider its unique features:
1. The people is English speaking - only the poorest cannot understand much. They have good fluency and they even have the American accent. There is of course a learning curve for Filipinos to take on more value-added roles, but expect in a number of years for Filipinos to be performing a number of your business outsourcing roles, e.g. accounting, sales, telephone technical support, etc.
2. The people are amicable - they have a positive and friendly personality; and more generally they have values not too far removed from the Western world; at least compared to the rest of Asia. This makes them particularly well suited to sales tele support roles. I recall a Telstra call promoting their telco services in Australia. My father answered the call, and was having a pushy Indian trying to cajole him to buy some service.
3. They are lifestyle orientated - which means you can expect good staff retention because they want to retain relationships more than climb the corporate ladder. India, the Philippines main competitor in this area suffers from poor retention rates. Indians are far more likely to aspire for more, so for business service providers its difficult to perform it.

There are obstacles as well. The Philippine work ethic more closely resembles the Spanish culture from which is drew its greatest influence. That said, the university population is more aspirational than the general perception one might draw driving around a slump or some provincial images which might permeate our minds walking the streets.

The outlook for the Philippines is rather good. The country is starting to develop some of its mineral resources, and remittances remain a strong & important contributor to the economy.
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Andrew Sheldon
Investment eBooks
NZ Property Guide
Philippine Real Estate Guide
Foreclosed Japan Guide
Mining Stocks Guide
Applied Critical Thinking, Strategy, Integrity Investments SheldonThinks


Yields on Philippine rental apartments

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The Philippine property market is looking very strong. According to Global Property Guide the yield on an aprtment in Manila is around 9% per annum, making it the 6th best yields in the world. The best yields are on property in Jakarta (Indonesia) and Lima (Peru), which are offering 12% yields. I would suggest however that some regional cities in the Philippines offer far better investment returns. Lipa City near the commercial port of Batangas and the Subic Economic Zone are areas which will benefit from satellite developments to the Metro Manila area. Further afield, you can expect places like Lucena City (Quezon), Naga City (Bohol) and Lauag City (Ilocos Norte), Davao City among others to perform very well as well. Improving infrastructure in the Philippines will see call centres placed in these areas in future, and expect these developments to result in a rapid rise in relatively high paid jobs, as well as new entertainment precincts. The most attractive areas are those with recognised universities like La Salle Lipa City. Foreigners will appreciate the improved facilities in these places as well. Lipa City already has 3 shopping malls, new tollway connections to Batangas and Manila. It also has the advantage of higher elevation, so its an attractive place to live. Part of its appeal is that its not as high as Tagaytay, so its not covered in rain clouds, making it an attractive place to live. Its perched on the edge of the Taal Volcano, though not so close that you have to worry, and being to the south, the city is likely avoid any unlikely prospect of a volcaniclastic eruption. Lipa is close to Batangas, Manila, as well as those tourist areas like Nusugbu, Tagatyay and Puerto Gallera. The improvement to the tollway to Manila means it can take just 1 hour and 15mins to get to Manila. Ten years ago the same trip would have taken you 4 hours; 2 years ago it would haven taken 2 hours. This should be important information to prospective investors looking for places to invest. Lucena City is currently isolated from Manila. In another 10 years the freeway might well stretch to Lucena City, which will also place that city in far closer proximity to Manila, but also Lipa, which is also likely to benefit from any development by Manny Villar in the Eton City - Calamba City area.
You can learn more about buying in the Philippines from our Philippines Property report 2008. Buyers of this report will receive the 2010 (2nd edition) free when it is complete. The Philippines is confronting a presidential election in May 2010, so that will be something to watch. There should be no big surprises on the downside, though I suspect better leadership could see the Philippines attract a RE-RATING in future years.

Wednesday, February 3, 2010

Buying property in the Philippines

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According to a survey by Global Property Guide the Philippines ranks in 3rd place with the best yields on property - with Jakarta and Lima (Peru) in 1st and 2nd places. The average yield for a property in Manila is 10.99%. I much prefer the Philippines for lifestyle reasons and because of a number of other reasons:
1. Greater regulation means restrictions on where you build - so prospect of restricted property development looking forward
2. Strong population growth - this country is growing at 2% per annum, that's almost 2mil people a year
3. Job creation - The Philippines is the preferred business outsourcing base because Filipinos are the best diplomats. Laxed work ethic aside, they have potential for more of this 'structural' shifting of jobs from the west.
4. Remittance - A great deal of money is flowing from expats abroad to the home country, as well as BFs sending GFs money.
5. Reform - The Philippines government on balance is getting its act together. Infrastructure is being built. The country could do with some ports reform, but is otherwise on a positive path. I note that they are increasingly building infrastructure for tourism around the country.
6. China proximity - The Philippines is close to some of the biggest and fastest growing countries in the world, so some of the benefits can be expected to rub off in terms of trade and tourism. There is a new airport flight from Lauag (Ilocos Norte) to China, and expect more of these links to draw tourists. Not just China, but Korea and Japan.
7. Tourist friendly - The Philippines is without a doubt the most tourist friendly country in the world. They are very diplomatic and engaging. Great sense of life, very personable. Gradually you can expect them to get their service culture in place, and a worth ethic. Better still - you can stay in the country on a tourist visa for 18 months without even leaving. Try doing that in Indonesia.

My advice is to check out some of the rural cities - as opposed to focusing on the Manila. My picks are Naga City, Vigan City, Lucena City and Davao City. If you need more info on buying property in the Philippines, I have written a 2 volume eBook "Buying Phililppines Property" on the topic. See my bookstore for more information. Currently updating the late 2008 edition - so I'm forwarding the 2010 edition to those who purchase the 2008 edition.

Sunday, November 29, 2009

Taxation for Non-Residents of the Philippines

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If you are considering retiring or living in the Philippines you will want to familiarise yourself with the taxation laws. The Philippines actually has very favourable laws for taxation. This I guess is in support of all those expats who are so keen to remit funds.
Most foreigners in the Philippines live there on tourist visas, so they are effectively non-residents.
Here is an extract from the Philippines Law website:

Section 23. General Principles of Income Taxation in the Philippines.
Except when otherwise provided in this Code:

(A) A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines;
(B) A nonresident citizen is taxable only on income derived from sources within the Philippines;
(C) An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income derived from sources within the Philippines: Provided, That a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade shall be treated as an overseas contract worker;
(D) An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines;
(E) A domestic corporation is taxable on all income derived from sources within and without the Philippines; and
(F) A foreign corporation, whether engaged or not in trade or business in the Philippines, is taxable only on income derived from sources within the Philippines.

Wednesday, September 30, 2009

Antipolo, Pasig, Cainta, Marikina

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Typhoon Ketsana's devastation is the worst in the last 40 years in Metro Manila. My partner and I almost bought a 2 br condo unit in Pasig, Riverfront Residences. We're lucky we didn't.

Pasig was one of the most badly hit areas where flood waters reached up to 4ft in 6 hours on September 25, 2009. Antipolo, Cainta and Marikina are the other cities that were drastically damaged and submerged. If you were to buy property in the Philippines, do not buy in these areas. On top of sewage and drainage problems, these places are near rivers and dams. They are overly populated as well. It's quite disheartening that many new real estate developments were concentrated in these areas and many people bought new houses just recently.

The current death toll in Metro Manila is 246. Many people died in their own homes as they weren't able to escape in time. Nobody expected the surge of water. Local officials had to let water out of the dams, fearing they would burst. One person died inside his car as the waters buried the streets. Many countries have provided overwhelming donations to aid the Philippine government in their relief operations:

Australia - AUD $1 Million
USA - USD $10,000
Japan - USD $220,000 worth of goods
Vietnam - USD $208,000 worth of rice
Korea - USD $330,000

For more information about the flooding in Manila, click here.

Tuesday, September 22, 2009

Healthy job creation in the Philippines

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I have long believed that the Philippines will weather the current recession better than most countries. By any standard the Philippines is well-placed. The most important factors are:
1. Strong remittances - the recession has not greatly decreased remittances from abroad
2. Mining - Mineral prices have collapsed but they still offer attractive returns
3. Tourism - The Philippines is at the cheaper end of the market, so it is unlikely to suffer
4. Structural shift in employment - There is a structural shift in jobs from foreign call centres to the Philippines.
5. Population growth of 2% per annum in the Philippines
6. Healthy economy - the government is in pretty good shape. There is no huge overhang of public or private sector debt like the bad old days. For this reason I suggest the Philippines will be looking at a property boom like Thailand in a few years.

In recent times I've seen continued moves by western firms to shift some of their call centre activities to the Philippines. The latest is Vodafone Australia and about two months ago Telecom NZ were doing the same thing. Expect more of this type of behaviour, and it will increasingly involve smaller companies outsourcing call centre activities.