My wife and I, kindly request the advice of more senior/experienced members regarding property investment NZ vs Japan.
OK... so it's decision time.. we are able to invest up to $100,000 NZ cash (a pittance, I know)... on either a substantial deposit on a NZ (Auckland) central city apartment, or buy (outright) a couple cheap apartments in Fukuoka prefecture where we plan to move within a couple years or so...
Obviously, the Auckland property market is one of the most expensive in the world right now, with average house prices shooting up close to 1 million... it does seem to have come off the boil now and hit a peak... still, most people say it's hugely overvalued and some say there is a bubble looming on the horizon...
Now, let me give you a general idea/insight into Fukuoka... First and foremost, it's my wife's hometown... Fukuoka Prefecture is located on the north-east part in Kyushu island.. Japan's 6th largest city with a population of around 4 million people (similar to NZ) or 1.5 million (central city of Fukuoka).
It's a vibrant growing city - one of the few in Japan with a positive population growth - positive confident economy, one of the most livable cities in the world - some call the smaller brother of Tokyo...
OK... that was the general background/preamble.. now onto the specifics (bear with me guys)... I will link to samples of each investment opportunity - together with expected yields...
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Affordable Investment Opportunity in Prime Loc... - Realestate.co.nz
*First 2 links for Fukuoka apartments, very small 30 m2.. around $30,000 NZ each
returning 15% gross - but let's just be very realistic and say 10% return Net per year.. so we would expect a minimum return of $10,000 NZ per year on our $100,000 investment.
*Auckland apartment is $249,000 52 m2 - which is currently rented for $530 per week. *fixed tenancy - whatever that means...
We would deposit $50,000 on that one.. and were thinking of a 15 year mortgage @ 5.5% PA interest (floating).
Our mortgage weekly payments would be $377 per week + body corp/rates, etc so the rent would just cover the mortgage...
So, my question to you, is which option is smarter/better? get instant positive cash flow from cash cow apartments in Japan, or utilize our ability to get a mortgage on a bigger property in Auckland and let the tenants pay for the mortgage?
I apologize for the long ass post, I know my posts are usually of a more light-hearted nature and I should be paying you for your investment advice... We will shout you a meal/drinks in Japan or NZ for your help, I promise...
Thank you, sincerely in advance from the both of us... Arigatou gozaimasu!!