BJT babcock & brown japan property trust

Now, Peter has once again turned his attention to Japanese real...

  1. 1,573 Posts.
    Now, Peter has once again turned his attention to Japanese real estate stocks...

    http://www.dailywealth.com/archive/2007/nov/japanese-real-estate.asp

    6 Reasons why Japanese real estate is a great place for our money

    ......In his e-mail to me, he listed reason after reason why Japanese real estate is a great place for our money...

    • Japanese real estate investment trusts (REITs) are a great bargain, down 29% since June 1.
    • Dividend yields are the highest income plays in Japan, in the 4% range.
    • There's a huge incentive to borrow and buy real estate, as "cap rates" (essentially the rent minus the costs of upkeep) are 4%-6%, while the cost of borrowing money is only 1.5%.
    • Rents in Tokyo are up 30% in the past two years.
    • The city is crawling with investment bankers looking to buy properties... companies like Goldman Sachs, which has already spent billions investing in Tokyo real estate.
    • There is no supply... vacancy rates in Tokyo real estate are tight at 2.6% and there isn't much new building taking place.
    Peter is right... the opportunity is enormous. Japanese real estate is literally selling at 1980s prices. It's unbelievable.
 
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