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Foreign business owners are scrambling to raise capital to stay in Japan

tokyopaladin.substack.com

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Re: Foreign business owners are scrambling to raise capital to stay in Japan

#151

Earlier quoted context omitted.

I tried this once and it wasn’t great. It was a single home, and in a college neighborhood (house was cheap, ergo rent was low). The rent paid the mortgage, but that was about it. Repairs were more or less out of pocket. I gave it up because I didn’t live locally and got raked over the coals on repairs a couple times. I finally quit because the property managers had an “emergency repairs” clause where they could do r…

Oh yeah, the management companies bill insane amounts. The beach house I mentioned in the sibling sub-thread - they'd bill $100 to change a lightbulb, stuff like that. It only made sense as a medium-term investment - buy with cash, maintain for a decade (and maybe you're cashflow positive for part of that), then sell for a profit (hopefully). Similarly, local to me, renting a house really only makes sense if you boug…

The returns just don’t really make sense for me, but I’m not a CPA.

The returns don’t seem substantially better than an index fund, it’s a headache to deal with, and if housing actually becomes affordable then you’re upside down (and the govt might air drop cash on upside down mortgages, probably not if you’re already paid off).

Not my forte though and I hand-waved the hell out of that math, maybe I’m way off. Just feels like a ton of capital to tie up for mediocre returns.

A beach house makes some more sense because you get the utility of being able to use it, which is worth something if you like to vacation to the same place.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#152
post #114

Earlier quoted context omitted.

It's a contentious issue in Canada, too. There are legit reasons families may want to bring in certain extended family members (grandparents for childcare, etc), but it becomes a chain. Canada's elderly benefits are designed for people that have lived here all their lives, so it adds a strain to healthcare and other services. IMO it should be immediate family (spouse and children) and then maybe one should be able to…

> Canada's elderly benefits are designed for people that have lived here all their lives, so it adds a strain to healthcare and other services. In Germany, the benefits are tied to contributions, and after 45 years old, having some sort of pension is a requirement for getting a residence permit. That being said, Canada is also getting skilled workers it did not pay to raise, educate and train. It's getting a good dea…

> That being said, Canada is also getting skilled workers it did not pay to raise, educate and train. It's getting a good deal, but it's not getting a free meal.

Canada’s moribund GDP per capita suggests they’re not getting a good deal. One big problem is that foreign education is worth very little because the standards are so much lower. Half my extended family in my parents' cohort moved to the U.S./Australia/Canada. They all had college degrees from Bangladesh, which was very favorable under the point-based immigration in Australia and Canada. Out of a dozen people, only my dad got a college-required job without further education. My uncle became a doctor after redoing medical school. And two cousins went to college in Australia and got professional jobs. That was it--everybody else got permanent residency based on paper credentials then took non-college jobs. And they lived in subsidized housing, and got a lot of support from the government.

I would be curious to see the statistics for what fraction of Canadian/Australian skilled immigrants actually get a job that requires their skills and credentials. I suspect that there's a high percentage of people who get permanent residency based on paper credentials, but who can't actually get a job. The American system of tying the visa to a specific job solves at least that problem. I suspect the rate of return for the Canadian/Australian system is poor outside of medicine + people who immigrate to attend college in Canada/Australia.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#153

Earlier quoted context omitted.

>I feel like letting people buy their way in to visas is actually a pretty good system That depends of what you're hoping to prevent. If you want to filter out people who can't sustain themselves, petty crime or the like, it works. But it can open the door to a lot of unwanted effects. A foreign national that just extracts capital by capturing real state and collecting rent is a great example, this person is a large…

> A foreign national that just extracts capital by capturing real state and collecting rent is a great example, this person is a large net loss for the country. Is this a creative way of arguing that landlords are a net loss for the country? Because I would like to remind you that MANY people cannot afford to buy homes, and renting is how they make sure they don't become homeless.

>Is this a creative way of arguing that landlords are a net loss for the country?

Not landlords as a general concept, but there are many categories that are:

- Investors buying areas in bulk to monopolise available living space and manipulate prices

- Demand of renting space by investors making purchases unaffordable

- Temporary living space (Airbnb, etc) removing long term residence offer.

- Foreign investors exploiting living space from abroad, since the money extracted from rent will not be reinvested in the country.

The usual free market response to this is "more offer will even out demand". But there's lots of obstacles to this in real life. Regulatory capture, high upfront costs that limit builders, near inhexaustible demand by investors and tourism, etc.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#154

Earlier quoted context omitted.

> This is probably the fantasy part. It really isn't, some of people I know personally are literally doing exactly that. These "management companies" basically does everything for you, if you haven't heard about them since before, go look them up, I'm sure there is at least one active in your own area.

My close relative does it, and it's exactly like I wrote above: if it doesn't take your time, money mostly go to other people. There's a comment from everforward which gives a glimpse into reality.

> which gives a glimpse into reality.

Fun :| Impossible that different people have different experiences? Not claiming you're wrong, the world is a pretty big place after all.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#155
post #132

Earlier quoted context omitted.

Countries should be competing for the best immigrants, not closing their doors. Don't mistake what the elites want with what working class people want. Elites want a higher population - even if they're immigrants - so the market grows bigger for their businesses. But immigrants come with many problems for the working class people. The elites aren't going to have a house next to immigrants. They don't feel the effects…

> a house next to immigrants This assumes there is something wrong with immigrants. I've lived next to many immigrants. Almost everyone in the US is an immigrant or decended from them. The problem is the hateful - they destroy the society and neighborhood. > lower quality Humans are not lower or higher quality - except arguably those acting on hate, who damage the social contract of liberty.

[dead]

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#156
post #40
post #26

Earlier quoted context omitted.

> A [person] that just extracts capital by capturing real state and collecting rent is a great example, this person is a large net loss for the country. Even to their home country.

Genuine question: how so? I'm not familiar with the economics of this.

Rent extraction is bad, since it hurts productivity. Ill admit I am an unabashed Georgist, but the book Progress and Poverty by Henry George is pretty accessible. But basically this: Capital and Capitalists are good, they have money, then lend it for ownership, this creates innovation. Labor is good, you need workers, they work, they produce, its good. But Rent (extracting value from land, patents, etc.) is just a negative drain, labor has to pay rent, capital has to pay rent, but they don't really innovate and grow the economy.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#157

Earlier quoted context omitted.

The problem is that identifying who the "best" immigrants are for your country can be very difficult when thousands upon thousands of people are trying to game the system. Japan is a very attractive destination for a variety of reasons (highly-developed, safe, relatively "cheap", etc.) so you have lots of people who are willing to jump through some hoops and put up some capital for a chance to live there. I wouldn't…

And as you put up more roadblocks, the more you select for desperation. Your best prospects have lots of options and can take a path of lower resistance. Just as in sports, if you’re trying to draft a top kicker/thrower/catcher/goalie/whatever, they’re going to avoid onerous terms and outsized effort.

> And as you put up more roadblocks, the more you select for desperation.

This isn't actually true in all instances. You can literally buy residency (or even citizenship) in numerous countries, so anyone who is optimizing for the path of least resistance will always have options.

Japan is a very unique destination. It's one of the most developed countries in the world, with world-class infrastructure, a super interesting culture, great food, abundant nature, etc. For Westerners, housing is relatively inexpensive in much of the country, with tons of akiya (empty houses) available for purchase because foreigners can (at least for the time being) buy property with few restrictions. Due to the weak currency, very few developed countries (and basically none in Asia) are as affordable to Westerners.

The problem with the business manager visa is that many of the people obtaining it weren't really interested in running businesses in Japan. They were setting up shell companies to get residency.

Raising the capital requirement and adding new requirements around employment and language will no doubt hurt some legitimate business manager visa holders but realistically, the number of people running legitimate businesses in Japan who might have to leave will be dwarfed by the number of people who used the visa as a workaround to get residency.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#158

Earlier quoted context omitted.

"Social homogeneity" is how you get suburban shitholes in Utah where the police trip over themselves to defend a LEGO pawn shop owner from being served papers. People blamed the "Mormon Mafia[0]" for that, but the real problem is just that social homogeneity sucks , especially if you're on the receiving end of it. As for population decline, I will give you that all the people who are currently very loud-mouthed about…

>Anyway, migration is a human right. Not having states with citizenship is not a human right. >Sure. But culture changes all the time! Not even remotely at the current speed. If it did many of the cultures and ethnicities in europe simply wouldn't exist. Also your image of free unlimited migration runs into endless historical examples to the contrary.

> Not having states with citizenship is not a human right.

Double negatives in English are difficult to parse, and I can read this two ways:

- "There is no legal entitlement to migration."

- "Citizenship is a human right, and must be exclusionary lest new citizens dilute the value of existing citizenships, ergo any policy that makes citizenship easier to obtain is a violation of human rights."

As a statement of fact, the former is true, but I also wasn't arguing that you already have a legally recognized right to enter any country of your choosing. If you were arguing the latter, however, that is bullshit. Citizenship cannot be a human right because it is a status granted by a state. The state does not grant you your human rights[0], it can only promise not to interfere with them.

As for the historical counterexamples to migration as a human right, I can also bring up plenty of historical counterexamples to free speech as a human right. There have been just as many societies that tried to quell speech as there were societies that tried to quell migration. And, likewise, most people were not in a position to migrate, just as prior to the printing press and mass literacy, most people did not have an audience for their speech. But we would not say that "free speech is not a human right because a lot of countries tried to quash it", or "because most people in most times did not have the means to use it". That would be absurd.

Furthermore, we should keep in mind that when I talk of migration as a human right, I am not solely talking about immigration. Most historical examples of states suppressing migration were just as interested in keeping people from leaving as they were concerned with those entering. The king does not want his servants leaving for a better kingdom; so he welds the exits shut. This practice continued all the way until the Soviet Union made this policy so onerous that the US decided that it would only trade with "non-market economies" if they abolished their exit visas. Emigration is already a legally recognized human right and any country that does not let its citizens leave is rightfully attacked as despotic.

As for culture, uh... I'm not sure what kind of point you're trying to make. Even if every country in Europe were sealed off from one another, the culture of today would be dramatically different from 40 years ago, or 40 years from now. You just don't notice it because you're drifting along the same tide. Likewise, two different countries do not become the same merely because that tide is pulling really fast. France and Czechia were far more isolated 40 years ago, than they are now that the Iron Curtain is gone and the EU allows freedom of movement. They are still culturally distinct countries, even though they're moving in similar directions nowadays.

[0] There are countries in Europe that use their constitutions as a place to put general welfare and infrastructure goals. For example, in Finland, broadband Internet access is a "human right". For the purpose of this discussion we're going to only be talking about human rights as negative freedoms - i.e. the Anglo conception of human rights. I am not opposed to positive freedoms, but that's not what we're talking about.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#159
post #137

Earlier quoted context omitted.

I think they're the kind of people who would argue that the "immigrants" should be kept out, but "expats" are ok.

Yes, a country should want to keep out people with negative fiscal impact and bring in people with a positive fiscal impact. Isn’t that obvious? By all means bring in people to run businesses in Japan. Legitimate businesses, not visa mills. This increase in capital requirements stamps out the visa mills.

They usually come with tax exemptions (so not really good fiscal impact), and make prices climb like crazy. See Portugal and their remote worker visa, they outpriced most Portuguese people out of every city slightly near an airport.

Re: Foreign business owners are scrambling to raise capital to stay in Japan

#160

I applaud the Japanese for being capable of recognizing that many parts of their culture are unique and worth preserving. That what makes Japan Japan is not just the land and the name, but the people and their culture.

How asking for more money is protecting anything?
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