Selling property (short-term investment advice)

[Chuhai_strong]

Hello.

I am selling my current condo in Osaka and planning to move to the suburbs to accommodate the larger family I now have. I estimate that I will have 30 - 40 million yen left over if I sell at the asking price and pay off the remaining mortgage. My plan is to put that towards a new place (in combination with another mortgage), but it could take a year or two before I find a suitable property (We plan to rent in the meantime).

I would hate to leave such a large sum just sitting in a checking account collecting dust, but on the other hand stocks could be a little risky short term. Are there any middle ground options for me to invest in which would be lower risk than short-term stock investments, but better than a checking account or Japanese bonds?

Thank you for any advice!

[RetireJapan]

Probably not. I wouldn't risk it over such a short period.

[northSaver]

Some Japanese banks are offering one-year fixed term deposits at not totally crap rates. I think Shinsei have one right now that offers 0.8%. Also if you can level up to Diamond stage with them using SBI Connect then they'll give you 0.4% instant access.

A riskier option is to stick it in foreign government bonds, ether yen-hedged or unhedged. The returns might not be worth the risk though.

[ChapInTokyo]

Sony bank also offers 0.8% now on 1 year time deposits.

If you want to deposit more than 10M yen at a bank, it's good practice to split them up between several banks so your money is covered by the national deposit insurance (protects up to 10M yen for money you keep in current and time deposit accounts at a bank).

[Tkydon]

Hello.

I am selling my current condo in Osaka and planning to move to the suburbs to accommodate the larger family I now have. I estimate that I will have 30 - 40 million yen left over if I sell at the asking price and pay off the remaining mortgage. My plan is to put that towards a new place (in combination with another mortgage), but it could take a year or two before I find a suitable property (We plan to rent in the meantime).

I would hate to leave such a large sum just sitting in a checking account collecting dust, but on the other hand stocks could be a little risky short term. Are there any middle ground options for me to invest in which would be lower risk than short-term stock investments, but better than a checking account or Japanese bonds?

Thank you for any advice!

As it is your Primary Residence, you are entitled to the Primary Residence Tax Deduction of Y30M, but any Capital Gain over Y30M will be subject to Capital Gains Tax. If you have owned the property for more than 5 years, then the Tax Rate will be 20.325% (15% National, 0.315% Reconstruction, and 5% Residents' Taxes).

[Chuhai_strong]

Thank you for the useful suggestions. It has been very helpful.