Bricks and mortar and beyond: in a time of worldwide economic uncertainty, some investors are searching for safer options for their capital. Property has an inherently safe image and offers expanding and diversifying opportunities for investment. It is firmly on the agenda.The biggest financial investment many people will make in their rives Language
Rive (plural : rives) is a French word meaning "bank" (of a river). Geography
Rives is the name of several places: France
Rives is the name of 2 communes in France:
In Japan, the rock-solid image of real estate investment has taken something of a battering as prices (though still high compared to those in other developed countries) have fallen steadily for over a decade. On the positive side, some deregulation Deregulation
The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
Traditional areas that have been deregulated are the telephone and airline industries. has taken place, and the laws governing investment in real estate have been updated to allow for the kind of equity-type systems that exist in other countries. Trevor Reynolds, director of Banner K.K., an independent financial services company with over two decades of experience in Tokyo, says the falling prices may help to give some sense of sanity and perspective to the Japanese market, "finally bringing it back to reality. There are still great inefficiencies in the Japanese real estate market, and the falling prices could bring an opportunity for these to be fixed. Time will tell."
Andrew Savage, an associate at legal firm RIS RIS
rabies inhibiting substance. International Incorporated, also sees positive outcomes from the declining real estate prices. "Falling property prices have encouraged foreign investment and changed the face of the market. Foreign interest in REI in Japan is growing, and we believe we are well-placed to assist in that regard." RIS provides a comprehensive system of support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services for businesses and individuals looking to invest in or do business with Japan, including all the lawyers, surveyors, real estate brokers and other specialists required to keep real estate transactions moving as smoothly as possible. RIS does not, however, restrict its business to property matters, but covers a wide range of expertise among its 35 qualified staff, which includes local Japanese and foreign professionals. "This allows us to provide the full gamut of services from analysis of real estate property through to visa and immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. advice and tax and financial advice." Savage explains how RIS's all-encompassing capabilities can ensure a long-term holistic approach holistic approach A term used in alternative health for a philosophical approach to health care, in which the entire Pt is evaluated and treated. See Alternative medicine, Holistic medicine. for their clients: "We provide a service that looks beyond the immediacy of the business decision at hand, and we integrate our own experience with that of our network of affiliated accounting and tax professionals to provide 'big picture' advice and consulting. Our key words are 'planning' and 'management,' provided in a seamless 'one-stop' format."
In the not too distant past, ordinary investors who wanted to enjoy the benefits of the real estate markets had limited options. Those unwilling or unable to purchase a second house or apartment could perhaps buy equity in a property company and take their chances with the vagaries of the markets (although property companies are noted for being some of the most defensive stocks around). Recent developments, however, have enabled individuals with limited capital and/or a diversified investment approach to benefit more directly from property investment. One of the biggest opportunities in this area has been the rise of Real Estate Investment Trusts, or REITs. These are similar to mutual funds/unit trusts that can be traded on the major exchanges, but instead of stocks, REITs invest in property. The two main types are Equity REITs and Mortgage REITs. Equity REITs generate income mainly from the rents of properties that they own or are invested in. Mortgage REITs deal with property mortgages, lending capital to real estate owners or buying existing mortgages and generating income from the interest earned on the loans. There are also Hybrid REITs, which combine the characteristics of both Equity and Mortgage REITs.
The market for REITs in the United States has been booming in recent years, increasing the daily trading volume Trading volume
The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. to over a quarter of a billion dollars. The market in Japan has only been in operation for a couple of years, but companies are having some success in attracting at least a small portion of the billions of yen sitting in virtually zero-interest postal savings accounts for investment in JREITs. The folks at Banner K.K. are launching their own J-REIT. "Banner has set up structured funds for the benefit of our clients," says director Reynolds. "The next fund we have coming online is a domestic Japanese REIT REIT
See: Real Estate Investment Trust
See real estate investment trust (REIT). that will be available in June of 2003, with target returns in yen of 8-12%. This will be arranged with a major European Bank." Banner also provides a way to take advantage of Japan's ultra low interest rates by arranging multi-currency loans for international property purchases and refinancing options for property in the US, Canada, UK, Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. .
GMAC GMAC General Motors Acceptance Corporation
GMAC Graduate Management Admission Council
GMAC Give Me A Call
GMAC Genetic Manipulation Advisory Committee
GMAC Genetic Modification Advisory Committee (Singapore)
GMAC Give Me A Chance Commercial Holding Asia (GMACCH Asia) is the Asian presence of US-based GMAC Commercial Holding Corp.-the commercial real estate finance arm of GMAC Financial Services, which is in turn a subsidiary of General Motors Corporation, the world's largest automotive manufacturer. They aim to bring to Japan the standards of service and expertise that have made them market leaders in the US. Wendy Wisniewski, senior vice president and director of administration for Asia, explains: "GMACCM Asia is one of the few corporate groups in Japan able to provide its clients with a complete range of services for commercial real estate. We are ideally organized to offer a variety of services that cover every area of real estate financing, from loan origination, servicing and securitization Securitization
The process of creating a financial instrument by combining other financial assets and then marketing them to investors.
Mortgage backed securities are a perfect example of securitization.
May also be spelled as "securitisation. to real estate investment, investment advisory services advisory services
advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal and property management."
There is undoubtedly some uncertainty in the future of the Japanese real estate market; for some, this offers an opportunity for investment and growth, while for others it's a good reason to stay away. Ray Klein, co-founder of property investment firm American Life, sees the Japanese market as problematic. "The macroeconomic mac·ro·ec·o·nom·ics
n. (used with a sing. verb)
The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. trend of a declining population for the next 30 years makes Japanese real estate investment unappealing for the retail investor Retail Investor
Individual investors who buy and sell securities for their personal account, and not for another company or organization.
Retail investors buy in much smaller quantities than larger institutional investors. . Although there is room for professionals to make money in any market, for buy and hold investors, we see the opportunities in Seattle making it the place to be." American Life Investment Partnerships consists of investments in income-producing real estate in downtown Seattle, Washington. As the key port of entry for the Northwestern US, Seattle has a strong independent economy and is the home base of Boeing Aircraft, Microsoft Corporation, Starbucks Coffee and a host of leading biotechnology and medical product firms. One point that distinguishes American Life from other real estate operations is that their property portfolio is largely unleveraged. This lack of debt keeps cost lower, allowing for immediate income to be generated from rents without relying on capital gains from constant property sales, as many REITs do. Capital gains can then be paid in for the future, free from any of the risk that comes with debt. American Life's Klein spells out why he believes their system provides the best of both worlds. "People also forget that borrowing money has a cost. The interest cost reduces current income. We prefer to pay our investors higher current income while lowering their risk. Future capital gains are a bonus. As far as I know, what we are doing simply has not been done before."
In the late 1980s, a new form of security came into being, offering different levels of yield and risk for investors within the same bond. Collateralized Debt Obligations Collateralized Debt Obligation (CDO)
A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, (CDOs), as they are known, took the basis of their structure from Collateralized Mortgage Obligations Collateralized mortgage obligation (CMO)
A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. (CMOs) and seek to pool a variety of loans, bonds, mortgages and other assets other assets
Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. that can include non-performing loans into a single entity--spreading risk while providing high yields. Within that single entity, tranching is used to create various ranks of risk and return to suit different investors. The different tranches might then appeal to pension funds, hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" managers or individual investors depending on what kind of risk/yield trade-off they are looking for Looking for
In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. .
Two further kinds of investment instruments available are Mortgage-Backed Securities Mortgage-backed securities (MSBs)
Securities backed by a pool of mortgage loans. (MBS See Mb/sec.
MBS - mobile broadband services ) and Asset-Backed Securities (ABS). MBS are made up of loans to businesses or homebuyers, allowing smaller banks to lend mortgages to customers even if they don't have the assets to cover them. The principal and interest from the individual mortgages are then used to pay principal and interest on the MBS. An ABS is similar in nature but backed by non-property assets such as credit-cards, consumer finance loans or leases, et cetera ET CETERA. A Latin phrase, which has been adopted into English; it signifies. "and the others, and so of the rest," it is commonly abbreviated, &c.
2. Formerly the pleader was required to be very particular in making his defence. (q.v. .
Those wishing to increase their knowledge of real estate investment, including the investment vehicles briefly introduced above and many more, should be sure to attend the Fourth Annual Summit on Japanese Asset & Mortgage Securitization, to be held on May 13 and 14 at the Royal Park Hotel in Tokyo. Presented by the Information Management Network (IMN IMN Iraqi Media Network
IMN Indicated Mach Number
IMN Inter Member Network
IMN Infectious Mononucleosis
IMN Invisible Moose Network (website)
IMN Illegal Macro Name
IMN Internet Marketing Newsletter ), it will be a high caliber event bringing together leading executives, researchers, investors, issuers and other market participants from their respective fields. Sponsors and speakers will represent international and Japanese law firms, banks, rating agencies, financial service companies and media organizations. Topics will include the ABS/MBS markets in the US, Europe, Japan and Asia, securitization and real estate in Japan, credit derivatives, hotel investment opportunities, CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the class investments, the rating of non-performing loans, REITS and commercial and residential mortgage securitization. These events have in recent years drawn around 500 participants, making them invaluable networking opportunities in addition to presenting sterling content. For further information, visit IMN's Web site (www.imn.org/a455/jim).