Japanese Culture

[SaintessHeart]

Originally Posted by willx

I understand that, I moved from BC Lower Mainland to Southern Ontario actually! That being said, my >700 sq. ft condo in a building less than 3 years old that has a massive pool, garden, concierge and relatively nice amenities costs US$1600 a month. More inexpensive buildings in the core of downtown cost sub-US$1300. If you could bring reasonable pricing to Tokyo, I'd think there would be some demand?

My vague musings/thoughts were surrounding the fact that:
1) interest rates in Japan are low if you can actually get financing;
2) there's a dearth of affordable modern condo buildings;
3) savings rates in Japan have declined but there is still a significant amount of accumulated assets generating negative real returns, and
4) those assets would seek investments offering safe stable positive returns if possible

If you could get financing to build such a development, and if there's demand, the real investment "bang for the buck" in this thesis would be to convert the project and fund it via a REIT structure for those seeking positive yield. With cap rates in the 7's (I think) a tax-efficient investment structure offering even 4-5% returns should be pretty attractive I would think.. Or maybe not, who knows? Just random thoughts..

I totally suck at reading property markets, however I wonder, if financing laws are actually draconian and local-centric in Japan, shouldn't getting property loans be difficult there?

Another thing is, since the earthquake, there has been a flood of infrastructure redvelopment funds pouring into Japan, should't the excess liquidity lower the yield rates for the forthcoming years too?

[willx]

Originally Posted by SaintessHeart

I totally suck at reading property markets, however I wonder, if financing laws are actually draconian and local-centric in Japan, shouldn't getting property loans be difficult there?

Another thing is, since the earthquake, there has been a flood of infrastructure redvelopment funds pouring into Japan, should't the excess liquidity lower the yield rates for the forthcoming years too?

Those are good points.

1) Typically from my experience you can get around these things with LC guarantees, Foreign HoldCo and Foreign GP / LP structures, especially if the assets are fixed and in a local jurisdiction.. but you're right, borrowing restrictions shouldn't just be "assumed away."

2) -Delete- Er, yeah.. What Sumeragi said.

Anyways, with my recent personal investment record lately, even if I could (which I can't) .. I shouldn't

Part of the reason I was thinking of it randomly while on vacation and again recently is because my firm's Real Estate group has been incredibly busy in the last two years basically doing what I just described but with industrial and commercial real estate around the world. Investors are hungry, starving even, for yield .. and ultimately this means the market for it will crap out soon just like it did for super growth investments

[Sumeragi]

Originally Posted by SaintessHeart

Another thing is, since the earthquake, there has been a flood of infrastructure redvelopment funds pouring into Japan, should't the excess liquidity lower the yield rates for the forthcoming years too?

Not too sure about that. Most of the funds are those that the Japanese have pulled from their original investments, and given almost all the funds are going into Tohoku, it has no real relevance to Tokyo.

[SaintessHeart]

Originally Posted by willx

Those are good points.

1) Typically from my experience you can get around these things with LC guarantees, Foreign HoldCo and Foreign GP / LP structures, especially if the assets are fixed and in a local jurisdiction.. but you're right, borrowing restrictions shouldn't just be "assumed away."

2) -Delete- Er, yeah.. What Sumeragi said.

Anyways, with my recent personal investment record lately, even if I could (which I can't) .. I shouldn't

Part of the reason I was thinking of it randomly while on vacation and again recently is because my firm's Real Estate group has been incredibly busy in the last two years basically doing what I just described but with industrial and commercial real estate around the world. Investors are hungry, starving even, for yield .. and ultimately this means the market for it will crap out soon just like it did for super growth investments

Things hadn't been looking too good at my side either. It is October and I should be ready for the Santa Claus rally, but I have not yet held or actively buy-sell anything in my paper portfolio yet.

-Super- growth investments don't exist. If someone wants higher yields, they are "better" off with higher risk VCs or starting their own business. Investing is a prudent hedge against inflation by outgrowing money against inflation, not a way to get rich quick.

Given that Japan is an Asian society where financial prudence and fear of risk can tip to the extreme (savings over spending), the large amount of reserves the banks have and the lack of desire to spend what their banks hold for them may be the result in the low interest rates. Either that or the bank investments are not making enough money for them, or possibly both since the bank have to make profits. This would result in less businesses and less sales, which means less loans and a pretty stagnant and low interest rate.

P.S Get your Real Estate dept to invest in Singapore and make our property market crash please. At least with the low prices, I can finally get a flat of my own.

Originally Posted by Sumeragi

Not too sure about that. Most of the funds are those that the Japanese have pulled from their original investments, and given almost all the funds are going into Tohoku, it has no real relevance to Tokyo.

It has been a year and half since the earthquake and I was thinking that the domino effect of domestic markets should have set in - the redevelopment funds should have flowed to the nearby prefectures already.

I just need to find the major developers and construction companies in that area and see what they are actually building. Unfortunately, I have little knowledge of Japanese business cycles or even reading their language.

EDIT : One more thing -

Special Report: How Japan Inc stole a march in Myanmar

(Reuters) - Japan Inc is charging into Myanmar. The rush began one night last October, when Myanmar's new president rolled out a map after dinner to show an aging Japanese power broker a prize that could be Tokyo's to develop - a swathe of land nearly as big as Macau.

I don't know if it is a blessing or a curse, but one of the commentors might have got something that is possibly true :

Not surprised, Japan wants to diversify after their factories in China got creamed. They have been working with blacklisted tycoons and this is merely increasing existing ties. One thing Myanmar people needs to know is that unlike working with US and Europe, you never learn and develop your own industry when working with Japan. See Malaysia, Philippine, Indonesia, Thailand, etc. They were Japan’s factory and outsource area but over a decade they never have any local brand or tech expertise developed.

[aohige]

unlike working with US and Europe, you never learn and develop your own industry when working with Japan.

That's a load of balooney.
Whether or not the workers take experience home is up to the individal and the host state.
And they do. They aren't stupid.

Journalists, stop insulting the 3rd world with your personal opinions, and just report information.

[DonQuigleone]

I think the problem with Japan for you guys is that it's a fairly closed, dare I say it, cronyistic system.

It's very difficult for outside players to navigate the legal landscape. Especially for sensitive things like property development.

I'd say the reason Japanese property is so expensive in and around places like Tokyo is simply shortage of space. I mean, people are already crammed into tiny apartments already. And last time I checked maps of Tokyo, I didn't see that much undeveloped green space. I mean Tokyo has a density of 6000/km^2. That's going to make for big prices, no matter how you figure it.

[aohige]

I know what they meant to say.
That Japanese companies don't hire locals in management positions overseeing the production, giving them chance of an independent achievement.

But that article is written damn poorly.
Then again, that seems to be the norm these days.

[SaintessHeart]

Wait

Originally Posted by aohige

That's a load of balooney.
Whether or not the workers take experience home is up to the individal and the host state.
And they do. They aren't stupid.

Journalists, stop insulting the 3rd world with your personal opinions, and just report information.

Wait, so you mean that if the workers take their experience of running maid cafes home, combined with the lack of child labour laws, there will be a chance a loli maid cafe will be open-*is shot*.

[aohige]

Dude you'd make a bucketload of money with that.


Unfortunately the Interpol may be on your ass faster than you can say lolimaidcafe.

[willx]

Originally Posted by aohige

Dude you'd make a bucketload of money with that.


Unfortunately the Interpol may be on your ass faster than you can say lolimaidcafe.

Buy an abandoned oil rig and declare your own country? This is getting more and more illegal and more and more creepy..

[Sumeragi]

You might as well go to Mikojima.....

[SaintessHeart]

Originally Posted by aohige

Dude you'd make a bucketload of money with that.


Unfortunately the Interpol may be on your ass faster than you can say lolimaidcafe.

I don't know what the interpol can enforce in a country with no clear cut child labour laws.

Now who is interested in investing in it?

[Ascaloth]

Originally Posted by willx

Buy an abandoned oil rig and declare your own country? This is getting more and more illegal and more and more creepy..

If you're going to go to that extent, you might as well go all the way and purchase some real land. Buy over the freakin' Senkakus.

[asaqe]

Originally Posted by MakubeX2

If those Korean music label had any ambition outside of Asia, they might want to opt for off beat, catchy tunes demonstrated by the portly Psy instead of trying to overwhelm us with unnatural talents of both gender in arts and looks.

The thing is Psy is already part of one of the most well known Korean Hip Hop and R&B giants. It was just that it was also a dance craze. And unless Akimoto decides to make a NYC48, Japan simply can't compete and even then they must bend over to America's rules of Girls Groups which means their girls will have to be bad touched by video dudes compared to the pristine virgin attitude in Japan.

Also, can someone enlighten me on the recent nightclub restrictions in Japan. After playing some Ryu Ga Gotoku did I learn there has recently been a closing curfew at 12:00 am every night.

[DonQuigleone]

I think that KPop beats JPop at the moment (at least throughout Asia) because KPop is more exportable, largely because it's a lot more slick.

Watch an AKB48 video, and then watch an SNSD video, the SNSD video will be a lot slicker. Japan's tastes in it's own idols is a bit idiosyncratic.

Also, I think Korean pop culture is currently a lot more aspirationally capitalist, and focused on material wealth. This rings well with most of the rest of Asia, who are in similar positions. Japan, by contrast, is a mature economy, and material wealth alone doesn't hold as much attraction.

[SeijiSensei]

Originally Posted by DonQuigleone

Watch an AKB48 video, and then watch an SNSD video, the SNSD video will be a lot slicker. Japan's tastes in it's own idols is a bit idiosyncratic.

I have to say I like AKB48's Manatsu no Sounds Good music video because it is just so bizarre. I sent it to my daughter with the comment "Boobs, blood, bikinis and ballistic missiles, what more could you want?"

But yes they are dressed in pristine white bikinis and pristine white dresses after we see them strewn rather hideously in black-and-white outfits on the field of death. At the end the girls are at the top of hill all dressed in white. It reminded me of a scene in AKB0048 where one of the characters calls the idols' future surrogates "angels." The ending of the video is weird and confusing (not that much about it really makes sense). Are the girls on top of hill actually angels in heaven? So is the injured girl really dead? What about her helper? I'll admit I don't understand the lyrics, but I suspect it wouldn't matter if I did.

The blue blood is a cute little easter egg for otakus, I think. Rahxephon, perhaps, or maybe Eva?

[DonQuigleone]

Something I don't get, AKB48 clearly has Otaku credentials (AKB stands for Akihabara after all), so how come they have such mainstream popularity when other stuff aimed at Otaku is usually shunned?

[Sumeragi]

It's the other way around, really: AKB was mainstream with the otakus coming in later. Furthermore, AKB48's theater is located in Akihabara, hence the name

[SeijiSensei]

Originally Posted by DonQuigleone

Something I don't get, AKB48 clearly has Otaku credentials (AKB stands for Akihabara after all), so how come they have such mainstream popularity when other stuff aimed at Otaku is usually shunned?

Over in the AKB0048 thread there is discussion of the divide between anime otaku and AKB fans. You'd have to ask sa547 about this; he seems the resident expert on all things AKB.

[Cosmic Eagle]

Speaking of all this talk on Japan industry....anyone know what prospects of working in their bio research sector are like? Both commercial and academic although I lean more towards the latter.