Japanese Investors by the Busload

[Margarite]

So, it was a normal Saturday morning until the unmarked deluxe motor coach parked in front of the house next door. The doors open and out pours a busload of Japanese people who proceed to the house directly across the street that is for sale. Many pictures are snapped and they are checking out the inside, outside, and backyard. My curiosity [[nosiness) got the best of me and I went to talk to the bus driver. Turns out that they are Japanese investors that he has been driving around the Detroit area looking at investment properties with some side trips to the bank and the mall for shopping. I'm still in shock at the spectacle and haven't formed an opinion yet.

[Wild]

On what street did this happen?

[Margarite]

I live on Roscommon between Kelly and Beaconsfield in Harper Woods. My husband said he saw the bus on our street yesterday also.

[Wild]

That's interesting. Thanks for the response.

[jtf1972]

I saw a Century 21 realtor apparently showing the vacant lot at Gratiot/Vernor next to the Dequindre Cut.

I hope it is purchased for an apartment building that it built out to form a street wall, and not another recessed drug store with a large parking lot.

[EastsideAl]

I work with Japanese people every day over the phone and the internet in my business. You have to remember that they are coming from a country where - even after persistent deflation over the past couple of decades - there is no such thing as cheap houses or land, where houses are routinely mortgaged over more than one generation, and where most houses are sold without actual ownership of the land underneath.

A lot of Japanese are fascinated by the fact that there are so many extremely cheap homes [[and so much cheap land) available in many major American cities. Since investing in Japanese land is so expensive, with little promise of any return, and the Japanese stock market has been flat or declining for 20 years now, the ability to buy cheap houses in the US looks like an attractive investment for many people over there. I don't think any significant number of Japanese are looking to immigrate to get away from the dangers of nuclear power, but they are looking for affordable foreign investments with a possible upside.

However, I'm also pretty sure that most people from there have never run into a city in long-term decline like much of the Detroit area, nor could they really conceive of such a thing.

[Smirnoff]

It's amazing how non-US citizens can purchase & own property in our country.....

[Hermod]

It's amazing how non-US citizens can purchase & own property in our country.....

Even illegal, border-jumping, non-citizens often own property.

[EastsideAl]

I'm not sure why that's amazing. Plenty of Americans own property in other countries too. Members of my family own land in Canada, and have for many years. And my cousin actually has a home in Japan, where he's lived for quite some time now. Under what authority would you prevent people from selling their property to those who offered them the best price?

[Margarite]

I'm really curious about who arranges these tours. Is it a local real estate board, the Chamber of Commerce, or maybe the state?

[wolverine]

It's amazing how non-US citizens can purchase & own property in our country.....

It's amazing what some people will post.

[Hermod]

It's amazing what some people will post.

In many countries, it is not legal for a non-citizen to own property.

[wolverine]

In many countries, it is not legal for a non-citizen to own property.

So what. Detroit's is in the United States....where foreigners have owned property even before we became a country. What's so amazing about something that has gone on for centuries?

[Detroitej72]

In many countries, it is not legal for a non-citizen to own property.

So what?

I can't understand why cons are so against immigration. My in-laws are German citizens, have lived here since the 1960's, and have owned their house since then. They also have paid their taxes, created jobs and have made their neighborhood better.

I'd take immigrants like them any day over some lazy redneck that was born in Hazel Park and whose sole contribution to society is to keep the local beer store open.

[Det_ard]

So what?

I can't understand why cons are so against immigration. My in-laws are German citizens, have lived here since the 1960's, and have owned their house since then. They also have paid their taxes, created jobs and have made their neighborhood better.

I'd take immigrants like them any day over some lazy redneck that was born in Hazel Park and whose sole contribution to society is to keep the local beer store open.

Way to miss the point. Hermod was referring to the fact that in some countries, like Mexico, foreigners are prohibited from owning property near the coast. We have no such restriction.

BTW, conservatives aren't against immigration. They're against illegal immigration. There's a difference, you know. And like you, I'll take a hardworking immigrant over some lay-about native every day of the week.

[Hypestyles]

uh... free-market capitalism notwithstanding.. just why would japanese tourists be interested in becoming landlords in a detroit-area residential neighborhood? If these folks were being shown commercial/business district property/office building, I could see the rationale, but...

[Johnnny5]

uh... free-market capitalism notwithstanding.. just why would japanese tourists be interested in becoming landlords in a detroit-area residential neighborhood?.

Most likely a couple swindlers using the the "low" prices as bait and selling $500 homes from the last tax auction for 20x what they are really worth. Taking advantage of the language barrier, down playing the cost of repairs, exaggerating the rental income potential and conveniently forgetting to discuss issues like theft, vandalism and property taxes.

[Hermod]

Most likely a couple swindlers using the the "low" prices as bait and selling $500 homes from the last tax auction for 20x what they are really worth. Taking advantage of the language barrier, down playing the cost of repairs, exaggerating the rental income potential and conveniently forgetting to discuss issues like theft, vandalism and property taxes.

BINGO!!!!

Just some real estate hustlers on the make.

They are exploiting the Japanese desire for property.

[canuck]

So what. Detroit's is in the United States....where foreigners have owned property even before we became a country. What's so amazing about something that has gone on for centuries?

lol x 1000.

[PeachLaser]

Japan has suffered a nuclear catastrophe that is far from over which still threatens much of the country. A portion of the country is already un-inhabitable due to this accident. Over a thousand spent fuel rods are still suspended five stories up in a heavily damaged structure that is leaning and bulging. I read an article once where the Japanese were eyeing the numerous and empty cities that the Chinese have built as they evacuate.

Mount Fuji is also a growing concern as the pressures for an eruption are at historic levels. Maybe, the current problems of Detroit don't look so daunting in comparison. http://www.wired.co.uk/news/archive/.../06/mount-fuji

[PeachLaser]

Interesting that no one has replied to this thread.

Detroit's problems seem insurmountable until others come looking at the opportunities.

[oladub]

Nearly 700 Florida foreclosures sold in bulk to private investor

for an average of $75,000. Small bidders need not apply. The purchaser, Pacifica Corporation, a privately held company, will lease these homes out for Fannie Mae for 20% of the rent. Fannie, gets the $75,000 and 80% of the rent.

This is probably not related to the Japanese investors but it is interesting to see new things going on intended to mop up surplus housing in a collapsed real estate market. We should expect our overseas dollars to come back home at some point as the dollar loses some of its reserve currency status. Maybe the Japanese can have a similar property management company to manage housing bought by Japanese individuals and companies. As Peach laser suggests, it might not be a bad idea to have a place to go if Japan's contamination gets too out of hand or conflict arises with China. When Hong Kong was in transition, Canada made itself friendly to Hong Kong millionaire's real estate investments. I'm surprised not to have heard of any attempts to lure rich French people to US communities .

[Margarite]

Hmmm, coincidence?

http://www.freep.com/apps/pbcs.dll/a...=2012310040223

[EastsideAl]

Hmmm, coincidence?

http://www.freep.com/apps/pbcs.dll/a...=2012310040223

That's a very interesting gamble by Harper Woods - selling off all of their foreclosed houses for the cost of the back taxes to a single developer who promises to renovate and sell them. I want to see how it actually turns out before I make any final judgements. But it seems to me one would be foolish not to be somewhat skeptical of the ability of the speculators to fulfill their promises, and wonder what is going to happen if financial conditions, etc. keep it from working out as planned.

[j to the jeremy]

Even illegal, border-jumping, non-citizens often own property.

You mean Europeans, right ????