Differences in the investment environments of Japanese and American people
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Now, the theme this time isJapanese and Americans.
Compared to Americans, Japanese people are said to be passive in stock investment.
Securities companies and the government are loudly promoting “From savings to investing.”
But, please wait a moment.
Japanese and Americans live in different environments.
The big difference is in the real estate market.
Housing accounts for a large weight in personal assets.
＜Japan＞
☆ There is a worship of new construction, and there is a large gap between the prices of used and new.
☆ Used properties have low liquidity.
☆ The buying/selling fees are high, capped at 3% plus 60,000 yen.
In other words, low liquidity and high costs for cashing in.
＜U.S.＞
☆ Add value yourself and upgrade your home.
☆ There is not much resistance to buying used homes.
☆ No matter how expensive a property is, some agents charge as little as $1,000 (about 100,000 yen), so the cost of cashing in is low.
☆ Relatively, market liquidity is often higher than in Japan.
Considering the above, Japanese people keep a large portion of their assets in low-liquidity things.
As a result, it is necessary to increase the weight of highly liquid assets such as cash.
If the government promotes stock investment, it might be faster to aim to improve liquidity by lowering real estate transaction fees or registration costs.
Note) The above reflects my personal view and is also intended solely to improve financial literacy. Therefore, it is not created for investment solicitation. Also, while the blog content is based on data from reliable sources, the administrator does not guarantee its accuracy. Actual investment decisions are to be made at your own risk.
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