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Top 30 Yield Ranking of Overseas Real Estate Investment! How to Choose and Countries to Recommend ③
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Hello everyone!
We are here to talk about the hot topic of real estate investment overseas.
Today, we will continue this series of articles.
Many of you may be thinking, “Overseas real estate investment is attractive, but which country has the lowest risk and highest profit?” Many of you may be thinking, “I have no experience in real estate investment, but I am interested in overseas real estate investment.
Or, “I have experience in real estate investment, but the overseas market is totally different. How should I find reliable information?” We also often hear the question, “How should I find reliable information?
These concerns are common to many people considering overseas real estate investment.
Therefore, in this article, we will introduce the TOP 30 yield ranking for overseas real estate investment and explain in detail the characteristics of each country, how to choose, and which countries we recommend.
One of the reasons for this is the difference in interest rates between foreign countries and the weak yen.
Logistical disruptions caused by the Corona disaster and Russia's invasion of Ukraine have triggered this,
Prices in countries around the world have experienced significant inflation.
For example, the price inflation rate for the full year 2022 is 7.99% in the U.S. and 7.99% in the U.K,
For example, in the U.S., the inflation rate for the full year of 2022 was 7.99%, the highest level in 31 years, and in the EU, it jumped to a whopping 9.2%.
In response, central banks in other countries have tightened monetary policy in order to curb inflation.
As a result, policy rates in the U.S. and EU soared to 5.25% and 3.75%, respectively, in May.
In Japan, on the other hand, the inflation rate has remained at 2.50%.
The BOJ has maintained an accommodative monetary policy, although there was talk of a rate hike at one point,
The policy rate is still -0.10%, the so-called negative interest rate.
This interest rate differential causes money to flow from countries with low interest rates to those with high interest rates.
This is what is causing the current depreciation of the yen.
Low interest rates and a weak yen.
Foreign institutional investors have taken this situation as an opportunity to invest aggressively in Japanese real estate,
They are aggressively investing in Japanese real estate.
In other words, when purchasing real estate, they procure investment funds in yen, where interest rates are low, and invest in Japan, where the yen is weak,
This means that they are investing in Japan, where the yen is weak, and are getting a relative “bang for their buck” compared to other countries.
However, interest rate differentials and the weak yen are not the only factors attracting investment money to Tokyo from around the world.
The Mori Memorial Foundation/Institute for Urban Strategies releases an annual ranking of the world's cities.
The Mori Memorial Foundation's Urban Strategic Research Institute annually releases its latest ranking of the world's cities' overall strength,
Tokyo maintains a high ranking, coming in third behind London and New York.
As previously discussed in this column, new stations and office buildings are being opened and developed.
(More and more, it is becoming a city where people want to “live and stay! (The latest on new train line and station developments in Tokyo)
(Tokyo Midtown Yaesu is finally open! Tokyo is changing with the first large supply of office buildings in three years)
Tokyo is also attracting worldwide attention in various other rankings.
First, transportation.
In April, Time Out announced the “World's Best Public Transportation Cities.
Tokyo was ranked third, behind Berlin and Prague.
Next is the “wealthiness” of cities.
According to the “World's Richest Cities” ranking released in April by a British consulting firm,
The cities where many wealthy people who can invest more than $1 million live,
Tokyo came in second with approximately 290,300 residents, behind New York City, which came in first with approximately 340,000 residents.
This is more than two out of every 100 people.
That is how much money Tokyo attracts and generates.
Finally, there are employment opportunities for young people.
In the 2023 edition of the “Best Student Cities Ranking” by Quacquarelli Symond, which analyzes higher education around the world,
The city was ranked first in the world in one of the criteria, “job opportunities”.
This indicator indicates the popularity of the city as a recruiting ground for both domestic and foreign employers.
According to the Ministry of Internal Affairs and Communications, the number of excess transfers into Tokyo in 2022 is,
about 90,000 young people between the ages of 15 and 29. This is about four times the number of the second-ranked city, Kanagawa.
In addition, although Japan has a declining birthrate and an aging population, it boasts the 12th largest population in the world.
A city that attracts approximately 10% of that population is attractive to executives from around the world.
For this reason, large corporations and foreign-affiliated firms are setting up their bases in the city, making the opportunities for working in Tokyo extremely high.
For these reasons, Tokyo is a city that attracts “people, goods, and money” from a global perspective.
We can expect these to interact with each other and continue to develop in the future.
From our perspective as residents of Japan, real estate prices in Tokyo have been rising since Abenomics,
At first glance, one might think that they are overpriced.
However, Tokyo's potential is highly valued,
Tokyo's potential is highly valued and is considered to be undervalued by foreign investors.
Furthermore, loans are now available at low interest rates,
The difference between the investment yield and the borrowing interest rate is sufficient.
With a used studio, you can own real estate in Tokyo, which is attracting attention from around the world, for an affordable investment amount.
Tokyo, which is attracting worldwide attention, can be owned with an affordable investment amount.
Why not consider investing in real estate in Tokyo, a world-class city?
It gives you a good overview of the global situation.
We believe this is useful information for those who are considering overseas real estate as a source of income in the future.
Please look forward to next week's edition!
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