A few months back I wrote why I don’t keep my money in Japanese banks – which is because they pay horribly low rates. The other side of the coin is that you can borrow money in Japan at rates that most people in the US would have a heart attack if they saw.
I stopped by my local bank this weekend and they had fliers all over the place advertising a special Spring rate for housing loans. Here are the rates:
I’ve been incredibly tempted to take out a large loan and place the money into investments in the US, but the yen/dollar rate does fluctuate quite a bit. Even though I know I can make more in the US, I could lose a lot depending on the currency exchange rate changes. I also would have to take into account the cost of changing the money back and forth which can be quite expensive. Still, it would be an interesting experiment to do on a lesser scale to see how it worked out and something I may consider in the future when Nate and I can get the income from the sites a bit less random month to month.
The other option would to be to take out a large loan and invest it into something within Japan. I have a number of ideas in that area too, but they would take some planning and I would need to devote more time to them than I currently could afford to do. Some interesting possibilities to think about…