tristanj
4 hours ago
A large number of Airbnb hosts were using this Business Manager Visa as a way to stay in Japan.
People in China realized they could just buy/lease a guesthouse in Osaka / any tourist hotspot, and rent it out on Airbnb. Then they become a "business manager" and get a Japanese resident visa within 3 months. All you needed is to invest 5million yen, which is like 31k USD, which isn't much. People wrote entire online guides on how to do this. They even had brokers/agents helping people with the process [0].
Approximately half of all business manager visas went to Chinese nationals. In Osaka, 41% of all short-term rentals were operated by Chinese individuals [1]. The visa practically turned into an Airbnb host visa.
It's not surprising at all that Japan made the rules stricter.
[0] https://www.japantimes.co.jp/news/2026/06/05/japan/immigrati...
timr
2 hours ago
Yep. There was also a proliferation of Indian restaurants in the major cities, for the same basic reason. (Though I have to say that seems like a much harder road than operating a guesthouse for people from your own country, which is what I presume was the Chinese approach.)
Since you can bring in relatives on this kind of visa, I’ve heard the expression “One curry pot equals three people”. There have been stories in the Japanese press about long-time restauranteurs being shut down by the new rules.
rayiner
2 hours ago
> Since you can bring in relatives on this kind of visa, I’ve heard the expression “One curry pot equals three people”.
Family reunification is a gaping loophole in any skilled immigration law and developed countries need to seriously limit it. The New York Times did a good podcast on how uncapped family reunification ended up being a loophole that totally overturned all the limits and compromises in the 1965 immigration reform laws in the U.S.: https://www.nytimes.com/2024/10/29/podcasts/the-daily/electi...
hylaride
an hour ago
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 sponsor 2 others on long term VISAs. But there would still be fraud (there always will be I suppose).
nicbou
an hour ago
> 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 deal, but it's not getting a free meal. Those workers will have demands too.
hylaride
4 minutes ago
I'm not complaining myself, but the system has broken down due to abuse (and outright fraud) of student visas, where the "students" then started working front-line retail and delivery jobs. We stopped getting the skilled workers and got a lot of fraudulent ones, and there was a path to permanent residency/citizenship, which then became a pipeline for their families.
There's been a crackdown as of late, but it's significantly impacted the perceived benefits of immigration here (and significantly increased south-asian racism). I know this problem wasn't unique to Canada (AU/NZ/UK all had similar issues) as many countries felt it was better to get these immigrants educated here where their credentials could be recognized, but they underestimated the demand via diploma mills.
nicbou
an hour ago
I wouldn't call it a loophole but a compromise.
If you want to attract skilled labour, you must allow them to bring their dependents. They come as a unit.
rayiner
14 minutes ago
It’s not just dependents. It includes parents and siblings of both the skilled immigrant and their spouse. And, transitively, cousins, etc.
timr
an hour ago
> Family reunification is a gaping loophole in any skilled immigration law and developed countries need to seriously limit it.
I don’t know if I’d go that far. I tend to think it’s kind of cruel to separate families indefinitely in the name of labor, but I do see that restrictions are necessary to prevent abuse.
There’s an entire spectrum of reasonable debate here.
modo_mario
an hour ago
Same in belgium. It's almost if not the biggest source of migration.
mmooss
an hour ago
> Family reunification is a gaping loophole in any skilled immigration law and developed countries need to seriously limit it.
It's a huge benefit, giving more people the benefits of freedom, bringing the country benefits of more free people (including economic growth), and bringing families together.
As there is little documented downside, it's a huge win. I want people to have freedom and families to be together. What's the downside?
mitthrowaway2
an hour ago
I have to say though, the abundant authentic, high-quality and low-cost Indian and Nepalese restaurants across the country was a real quality of life benefit for people living in Japan.
timr
22 minutes ago
I tend to be pretty sympathetic to anyone who does the insanely hard work of operating an actual restaurant.
alephnerd
37 minutes ago
Those "Indian" restaurants are primarily run by Nepali nationals.
timr
24 minutes ago
Yeah, I’ve heard that. Also Bangladeshi. I think it’s a southeast asian mix, really.
fc417fc802
4 hours ago
I feel like letting people buy their way in to visas is actually a pretty good system from a strictly pragmatic standpoint but 5 million yen seems far too low.
torben-friis
3 hours ago
>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 net loss for the country.
rwmj
3 hours ago
> 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.
junon
2 hours ago
Genuine question: how so? I'm not familiar with the economics of this.
toss1
2 hours ago
The short answer is this an exemplar of the distinction between generating income by producing vs generating income by rent-seeking.
Producing something, goods, services, useful information, etc. is a net plus for society, adding value for both the producer and the consumer, making the society overall richer.
Rent-seeking is purely extractive - it extracts value from the consumer, and in the cases where the extractor is outside of the society, e.g., a foreigner or oligarch-type, it extracts value from the society, leaving the society poorer.
bouncycastle
44 minutes ago
Many positives. For example, the buildings get to be maintained and left in a better condition, rather than deteriorate. Streets look better too, and landrods have an interest that their assets are located in areas with low crime and adequate public services, as that improves the value of their properties. Often airbnb properties are well maintained, and I've seen a few examples where derelict properties were turned into nice looking houses in my town.
Landlords such as Airbnb hosts usually invest a lot in furniture and equipment, helping to keep the producers in business. Not to mention provide employment thanks to renovations, cleaning and maintenance. I'd say it leaves the economy more vibrant and benefits all. A classic example where landlords were banned was the Soviet Union, and all the housing problems that followed. Although the USSR finally collapsed, people there still live in the old Khrushchevkas...
junon
an hour ago
I understand why it's not great for the target country. I'm asking why GP said it was bad for the home country.
margalabargala
an hour ago
It's bad for wherever the person happens to be operating.
nradov
an hour ago
Efficient capital allocation is a net positive for society.
toss1
15 minutes ago
"Efficient" for whom, over what time-frame, and by what definition?
"Efficient capital allocation" is another hand-wavey concept with no clear definition which is far too often used to justify fundamentally evil results, up to and including arguably the most massive and fundamentally stupid strategic blunder in history.
The USA was the worlds remaining superpower and was democratic.
But based on "efficient capital allocation", the USA decided it was more "efficient" to offshore its "fungible" labor to cheaper Chinese workers. This gutted entire regions and sectors of the economy, literally destroyed the middle class which formed the basis of stability in the country, and handed to an adversarial authoritarian regime both numerous choke-points on it's economy and defense capabilities and technological advantages sufficient to turn it into a serious peer-threat. On top of that, the gutting of the economy brought about conditions for a full-on assault in democracy in the USA.
You seriously need to rethink your "philosophy" based on glib quips.
embedding-shape
2 hours ago
The general feedback loop is "have lots of money === easier to make more money", and doing so via passive approaches like "own property, rent it out" basically spirals out of control to a few owning a lot, unless you try to restrict it somehow. Add in that "vacation rentals" is hugely interesting for real estate owners as you get so much more per owned property, and suddenly local residents are even harder hit by property not being available even for long-term rent anymore. Final drop being that the real estate owner doesn't even live, work or spend their money in the country of the property itself, and suddenly it's basically all downside for the country and the people living there.
nradov
2 hours ago
The notion of earning "passive income" as a landlord is a total fantasy. The reality is that it takes a lot of work. Otherwise tenants, vendors, and property managers will wreck the assets and rob you blind.
embedding-shape
an hour ago
> The reality is that it takes a lot of work.
You can outsource pretty much the entire thing, and just be a name on a paper, and receive money in your bank account, that's as close to "passive income" as you can get. Lots of people do this today, pretty common for landlords to do so in Spain for example, and I'm sure all around the world.
broken-kebab
3 minutes ago
>You can outsource pretty much the entire thing
This is probably the fantasy part.
Quality of maintenance, honest, doesn't take all the money - you can pick only 2 of these for your property operator. Actually, you have to be lucky to get 2.
If it works great and you aren't involved in solving constantly incoming troubles, you're earning peanuts.
alistairSH
an hour ago
100% this.
My parents had a beach house for a while. It was rented May-Sept every year. They'd visit for a week in each shoulder season, spend half the time doing major cleaning/fixing, and left the day-to-day during rental season to a management company (same one that managed bookings for the house).
It wasn't 100% passive, but it was about as close as you can get as a retired upper-middle-class couple.
everforward
an hour ago
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 repairs without my approval and bill me.
One of the renters clogged the toilet at 11pm on a Saturday, moron decided to call the property management because I guess plungers are confusing, they decided that was an emergency, and I got a $700 bill to send a plumber out at midnight to plunge a toilet. Like not even a roto rooter or something, just a generic grocery store plunger.
Became clear I was either a) going to have to be much more involved, or b) accept that the returns are basically just equity in the house on a 15 year mortgage, minus overpriced repairs.
alistairSH
5 minutes ago
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 bought cheap (which for us normies means we bought it years ago, so the mortgage is cheap vs current rents).
junon
an hour ago
nradov
2 hours ago
If foreign nationals are able to extract a lot of capital through rents then that's a sign that the government has made it too difficult to develop new rental housing.
mitthrowaway2
an hour ago
This really isn't the case in Japan. It's extremely easy to develop new rental housing, and rents are fairly low.
However, it can be difficult for foreigners without a Japanese support network (like a blue-chip employer) to rent property in Japan at market price, because of discrimination by landlords. This isn't because of government policy, it's because building managers have the impression, mistaken or otherwise, that foreign tenants won't respect the rules, will be difficult to communicate with, or might skip town with unpaid rent.
braiamp
an hour ago
Or that capital has captured the regulators and are happy with it.
Gareth321
2 hours ago
> 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.
myrmidon
2 hours ago
I'm from a region negatively affected by this.
Foreign capital is undesirable in the housing market because:
1) It raises demand (when buying a home as a local, you now also have to compete with foreigners "investing", and this raises prices).
2) It often develops housing in a very unhealthy direction: Airbnbs and vacation apartments are toxic for local society and must be kept in check, otherwise you end up with half the houses just being shuttered for the whole off-season, and towns becoming empty husks.
3) Rent is a lot of money, and its obviously beneficial if it stays in the local economy instead of flowing abroad.
nradov
an hour ago
Why is there insufficient new housing development in your region?
braiamp
an hour ago
Because that implies more supply and landlords are happy with the supply being restricted. The people that has the money to build won't, the government will follow the money, so the state doesn't help. That kind of question reeks to "why are you poor?", well, because I have no money!
myrmidon
34 minutes ago
I don't think there is, really, but plenty of potential housing (and also the cost of construction) is pressured by "pseudo-housing" (Airbnb, vacation apartments, boutique hotels), often fueled by foreign capital.
braiamp
2 hours ago
So, you changed topics from airbnb, which removes units from the rental market, to landlords in general? I think I can play that game. Lets go for the easiest one against landlords: Renting being the alternative to homelessness isn't a feature, it's a failure of housing policy. Homeowners carry 400% more net wealth than renters with comparable income, normalizing a rental market just means normalizing a wealth gap.
gacgacgac
an hour ago
Why do you assume it has to be landlords providing inexpensive, short term housing?
ffaccount2
2 hours ago
And MANY people, like me, can afford to buy a home, butprefer to rent anyway.
Scoundreller
an hour ago
Or you end up with some weird scenario where so many are drunk on “real estate only go up” and rents become cheaper than owning.
I guess that’s a good thing (for voluntary renters… not so much for involuntary renters) but not really supposed to happen.
f17428d27584
an hour ago
1) renting is not the only way for a society to create affordable housing
2) rent being the only way to afford shelter has zero relation to whether it is a net loss or not
TFNA
3 hours ago
A number of European countries have allowed this; the 2010s were the heyday of this path. But it turns out that a lot of the people with big money to buy residence, got their money from organized crime, and it isn’t always easy to vet applicants (or corrupt officials could overlook the applicant’s background).
Gareth321
2 hours ago
It's not a popular opinion but I agree. As long as the price is very high, it is almost guaranteed to be a net social benefit. Even more beneficial is that people who are wealth enough to buy a visa will usually also consume a lot (paying a lot of consumption tax), stimulate the economy, create businesses, and invest. Wealthy people are also significantly underrepresented in crime.
missingdays
4 hours ago
A guesthouse in Osaka is 31k USD?
tristanj
4 hours ago
5 million yen is the company capital requirement. They would form a company, invest 5 million yen into it, then the company would lease an apartment and rent it out on Airbnb.
Rent would cost ¥60,000–120,000/month, they would list it on Airbnb for ¥20,000/night, then assuming 50% occupancy the return is ~¥200,000/month.
It was very profitable. The payback period for the ¥5 million was 1.5 - 2 years.
decimalenough
an hour ago
Also, the capital stays with the company! Wind down the company and (if it was profitable) you get your capital back.
Reubachi
4 hours ago
The visa requires licensing/registrations and token investments, all aside from the cost of purchasing a home in Osaka.
cucumber3732842
3 hours ago
>all aside from the cost of purchasing a home in Osaka
Which they were almost certainly divvying up. A bunch of people invest $32k each. Some management company buys the home, pays them all a cut of airBNB proceeds, etc. You don't "do" anything beyond put up $32k for your $31k piece of paper.
mytailorisrich
2 hours ago
> Which they were almost certainly divvying up
If I had to guess, I'd say probably not in most cases.
A lot of Chinese are cash rich (perhaps not on average but with 1.3 billion people the absolute number is large compared to other countries) and want to invest abroad, and are buying properties all over the place.
Another piece of evidence is the huge number of Chinese students in UK universities (from my experience) although the tuition fee alone is about £35k ($46k) a year.
user
3 hours ago
whizzter
3 hours ago
Iirc there's a scrap-n-build culture in Japan, houses are not really valued compared to land (due earthquake, quality, culture,etc).
hirako2000
3 hours ago
And how are they not managerial, entrepreneur, doing business ?
Is there something illegitimate in doing an activity that yield profit when the national is Chinese ? Or when it's a short term let ? Or when it is something that doesn't directly contributed to innovation benefiting the nation ?
bombcar
2 hours ago
It’s the difference between setting up a system to encourage investment and hoping for a factory, or at least a large department store, and instead getting a DataCenter that employs 30 people total.
user
2 hours ago
embedding-shape
2 hours ago
I don't think it's "illegitimate" as such, just parasitic behaviour the world probably needs less of. They buy up real estate, then rent it out, living in another country, basically just extracting wealth, and while it's legal, it's still lazy and kind of despicable behaviour from a "we're all humans on this planet" perspective. From the perspective of Japanese people, you see foreigners coming to where you live and strictly making things worse, not better.
But of course if we limit our perspective to an economic one, then it seems like a wise and sound approach to "escaping the hamster wheel" for the average Chinese person, easy money right? I think people in Japan probably don't have that perspective though, but instead look at the tail-effects of allowing that sort of behavior. That's why they changed the rules probably.
beefmumbai
4 hours ago
[dead]
shevy-java
3 hours ago
It's not just business related though - Japan has gotten more hostile to foreigners. And no, it is not restricted only to chinese foreigners:
https://www.youtube.com/watch?v=UGAmKqTWjxU
https://www.youtube.com/watch?v=dXLOsYTfl7k
(These two videos are quite recent at the time of writing this here.)
Don't get fooled by the deliberate (but misleading) title(s). This is a narration of more and more restrictions coming. So the article here also taps into this 1:1.
In some ways it reminds me of Nigel Farage in the UK, though in Japan it is not quite as tied to an individual person.