You can contact me directly to learn how to reduce your Japanese taxes.
Best regards, Mr. David
CASH FLOW IS KING
Many of us know about the overseas WOODEN structures that can be depreciated to reduce your Japanese tax burden. But how many of you out there actually set up these investments for the best long-term investment growth?
ISG has seen numerous investors who think that they have a great Japan tax-savings real estate investment - until we check the numbers and their smile quickly disappears: "Hang on, why it is costing me over $10,000 a year in expenses?"
Some of these investors buy properties in expensive prime markets, based on two factors:
Getting four years of Japanese tax refunds from overseas property depreciation benefits
Appreciating the property in order to make a good return
The problem with the above is that speculating on appreciation is pure risk because there is no way to control the outcome. The only thing that controls a property's value is the natural movement of the market. Also in many cases, a highly leveraged building, say 75% LTV, will generate negative cash flow over time, and the investor will have to sink more money in to cover operational costs. The extra capital required to cover such costs takes away from the main reason you're invested in the first place: to get Japanese tax refunds and improve your bottom line.
PROPERTY TAX, INSURANCE, REPAIRS, UPKEEP, HOA, PRPOPERTY MANAGEMENT etc. are all costs that negatively impact your bottom line if there is NO CASH FLOW.
Investing for POSITIVE CASH FLOW while keeping appreciation speculation as "icing on the cake" is a better solution.
There is more control with CASH FLOW. LIKE IN A BUSINESS, you can increase rental income, cut costs, and streamline your real estate portfolio so that the value to the investor you eventually sell to will be perceived as higher. YOU HAVE MORE CONTROL to ensure profitable cash flow for your investment.
Recover $100,000 in Japanese tax refunds, but pay out of pocket $10,000 in expenses
NET GAIN ? $90,000 USD
CASH FLOW model:
Recover $100,000 in Japanese tax refunds, but EARN $10,000 in CASH FLOW
NET GAIN ? $110,000 USD
That is a $20,000 gain per year, so over 4 years this boosts your bottom line by $80,000, RIGHT?!
If you would like to join our discussion on how to pay less Japanese tax while improving your bottom line, then please join ISG for some friendly networking and interesting exchanges on the benefits of why CASH FLOW IS KING and LOWERING YOUR JAPANESE TAXES.
Posted in: Housing & Real Estate
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