Reasons to avoid real estate investment
I’ll apologize in advance. To the salesperson from a real estate company and the person who writes columns at a real estate investment site about a successful position, I’m sorry! I currently think there is no reason to recommend real estate investment.
1. The Beginning of the End for Real Estate Investment
Due to the Sulga Shock where wrongful loans were extended to real estate investors, there is a tendency for stricter evaluation of real estate financing. If this spreads, demand for investment properties will drop, leading to a fall in prices.
On top of that, with yields already at a low point, real estate prices are far too high.
According to the Regularly Issued “Survey of Real Estate Investors” (the 38th edition) by the Japan Real Estate Institute, in some central areas of Tokyo, expected yields seem to have stopped falling, but their levels are as low as during the fund bubble era or even lower. The fact that yields are stopping their decline suggests we are near a turning point close to the peak.This means we are in the“beginning of the end.”
Here is an article about the surge in land prices in Chiba Prefecture and the overheating and cessation of real estate investment.www.investment3000.com
2. The Peak of Real Estate Investment
Right nowJudging from the trend in expected yields, it’s timing-wise at the peak of real estate investment— many asset managers also answer that now is the peak of real estate investment — so it is not the time to buy investment properties, and for the time being it’s wise to refrain from real estate investment. If possible, be cautious even when buying a home!
Readers of this blog are financially literate, so I think you’ll be fine, but beginners in real estate especially should not buy properties without thinking just because it’s a boom.
3. The Timing of Real Estate Price Declines
(Please rewrite this part for buyers)
