American here with Japanese PR. I’m looking to spend around 300,000 – 400,000 USD for a vacation home and debating between Big Island Hawaii vs somewhere like Okinawa, Izu, Shimoda. I’d be using cash, as well as selling recently vested stock holdings for Hawaii to avoid an insane US mortgage. If Japan, I’d take advantage of the low interest rates and probably get a mortgage. Obviously the property quality for this price point is going to be higher, more luxurious in Japan (higher spec, better views, waterfront, etc) but my main worry is depreciation which I would never expect anywhere in Hawaii. The property would be used about 4-5 times a year by me in Hawaii (and also shared with mainland family) and perhaps every month if Japan. The rest of the time I’d like to put it on STR. Obviously flights are more expensive to Hawaii. Running my own numbers and while Japan is much less out of pocket up front, long term it seems Hawaii is the better choice in terms of future return. I’m also weary of going through the whole Minpaku approval whereas the Big Island property is in a designated mixed use zone allowing STR. Admittedly this price point has limited choices in Hawaii for legal STR but theres a handful available in western Big Island, whereas I have a huge selection if Japan. I assume everyone would generally agree Big Island is a much better choice in terms of appreciation and return than a Japan vacation home?
by 2PlanetsAway