Australians have barely felt this recession because of the backlog of investment in the booming mining industry. BHP, Rio Tinto and others are leading a huge growth in productive capacity; their aim is to supply minerals to China before they are beaten by Mongolia; which neighbours China. The goods news is that Australia can service the coastal provinces whilst Mongolia can service the inland provinces. There is likely to be a nice competitive spread of business for China.
The culmination of this boom is likely to be Australians travelling more with an ever-increasing dollar. One appealing travel destination is likely to be JAPAN. Why Japan? Several reasons:
1. Japan offers the cheapest property in Asia. Yes, surprising but true, and now is the perfect time to buy. Why? Japanese live in fear. And having just had a recession, they are not likely to be focused on investment. Demand is subdued after an increase in GST was announced.
2. Foreigners are allowed to buy property in Japan on a tourist visa. That is what I did - a 5bed dormitory 1hr from Tokyo for Y2.8mil ($US30,000). Cheap as chips. They are even cheaper if you buy in rural areas, which are subject to depopulation. But I wanted to be close to one of the most exciting cities in the world.
3. Jetstar and Air Asia X are racing to bring to the market increasing flights from Australia to 4 cities in Japan. I personally consider Tokyo and Fukuoka the best cities - for different reasons.
4. The appeal of travelling around the world for your summer. You need not leave your summer behind; you can chase your summer. Better still, if you are into skiing, you can chase your winters as well...just not at the same time. hehe.
5. Cultural shock. Japan is a great intro to a foreign culture. Its safe, its fascinating, its exciting, the food is amazing. Its high tech and invigorates the senses.
6. Travel is cheap if you are a tourist. Stay for 3 months before renewing your visa, whether you fly to HK or just extend. If you have the right job, you can do this easily. For more than 2 decades Japan has been offering foreigns a very generous travel pass - travel by shinkanzen (very fast trains) or local trains for $A300 for a week - unlimited. Cheaper for longer periods. I would get the shinkanzen to a remote part of Japan, then a local train to some mountain temple for lunch. The shinkanzen would get me home by dinner time. I save on accommodation costs.
7. Foreclosed property - best of all, you can buy foreclosed property like me, for a fraction of market value because of poor market sentiment and/or depopulation. Japanese people want to live in the 'expensive' city centre; but you can buy 12+ year old houses very cheaply in fringe areas for under Y4mil ($US 45,000). Its through the court system, so its safe.
8. Activities - Japan is great for campervanning, kayaking, canoeing, mountain biking and touring. I use the train network to go canoeing because many trains go up scenic isolated river systems. Of course, you can buy a cheap 7yr Toyota for $3000 (like my ex-partner did), or you can jump on a train with an inflatable as I did. The train network will get you anywhere.
9. Culture - Japan is a fascinating culture. I personally love connecting with foreigners and Japanese people in their gaijin districts. For many Japanese the place is insufferable...but that's because they accept all this pressure. I once had a conservation with a grandpa who wanted to commit suicide. He said 'I envy you"...being able to do whatever you want to do". This is the freedom we love in the West...but this generation never felt able to do it; some of their children are doing it. Which is why there are many Asians in Australia, USA, NZ living the dream. You don't have to remain in a dead-end job, you just need to have a flexible job like English teaching, tattooing, graphic design, programming, karate instruction. I know people who are teaching forex to Japanese people in English. Yes, they want to learn in English because they want to "kill two birds with one stone". 'Old Japanese Proverb' hehe. :)
10. Strategy - Develop a strategy for what you want to achieve. You can buy fringe city property, rural peoperty, skifield property, even property on islands. Yes, some countries place a high value on 'island property', in Japan, there is no such premium. In Australia, I pay a $150K premium to live within 400km of a city, in Japan, the distance is 1hr from a city or 5km from a train station. The dynamics are different...so you are never really isolated from the city. How much do I pay for my 1hr train ticket to inner city - just Y420. I ride a bike to the local shopping centre, grocery store, a plethora of bars, take-aways. My favourite is Hokka Hokka Tei...far better in Japan than their foreign franchises.
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Andrew Sheldon www.sheldonthinks.com
