Investors in Activist funds targetting Japan would do well to consider the following curious fact when assessing the probability that their cage-rattling surrogate greenmailers will be successful in monetizing the apparent value embedded in Japanese enterprises:
"Only 13% of Japanese homes have EVER been resold, compared to 89% in Britain and 78% in the USA"
- From The Economist, 3rd Jan 2008 via Feb 2008 Prospect
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2 comments:
It's a good point to make. However, inheritance tax is one reason why property is so illiquid in Japan. Why? Because, if the inheritor is also resident in the property, as described by the family register, s/he inherits without paying taxes; even if not resident, there is an exemption on the first 40 million yen. Also property is valued by an Official rating system which is detached from (much lower than) commercial valuations. Couple that with a long history of periodic currency debasement and arbitrary government and taxation, and property takes on a special meaning as a store of value.
I believe sedentary has 2 e's , unless an esoteric pun
on the "sedan chair" of ancient Egypt is intended. Still,
it's nice to know that the Japanese hausfrau limits her
speculations to the forex market, and doesn't put her
home at risk.
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