Marketing Japan: Ripping People Off on Tokyo Real Estate
By Mike in Tokyo Rogers
I just found an article that shows the ultimate stupidity of some people as well as the criminal dishonesty of others... During Japan's bubble, when the Nikkei hit past ¥32,000 (today it is at ¥9,500 about) people bought all sorts of curious things as investment vehicles; they bought golf club memberships, land, stocks, condominiums, you name it. And, while the prices were shooting up (1984 ~ 1989) they were fine.... But when the bubble burst, those people lost their shirts...
Especially the ones who speculated on Tokyo real estate.
Of course, as anyone knows, condominiums have no land with them, so, in a down market, they will lose 1/2 their value, like when buying a new car, once they are driven off the lot (in the case of a condo, once lived in)...
The real estate jerk who sold this poor woman, and people like her, condominums as "investments" do nothing but rip people off.
From the article:
Japan women step up to make big purchases in slow economy
After 25 years working as an accounting assistant in a leading construction company, Asako Nakano decided two summers ago that she needed to stabilize her retirement plans. So she took the plunge and bought a condominium. "The decision to put almost all my savings into a home for myself was a bit daunting, but I never hesitated," said the friendly, confident single woman. "I thought to myself, I am never going to get married, so why not invest in my future? It made sense to me." With a little assistance from her mother, the 52-year-old paid almost $100,000 as a 40% down payment for her apartment in a leafy residential area of Tokyo. Japan's effort to dig itself out of its economic malaise is getting a boost from an unlikely source - the nation's female workforce.
I like how the article spins this bad trend of dishonest sales and misrepresentation as a "part" of the so-called economic recovery that isn't happening. For more on that read my friendMish Shedlock's blog "Global Analysis" here.
Some Real Estate Agent
What is really going on here is people are being taken advantage of by salesmen with no scruples. There's absolutely nothing wrong with buying a condominium. But being told that it is an investment for the future is just plain dishonest.