Tokyo’s used condominium prices reach record highs

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Category: Business

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Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. volatility / vɑl əˈtɪl ɪ ti / (n.) – the quality of changing quickly or suddenly
    Example:

    The volatility of food prices makes it hard for some families to buy what they need.


  2. liquidity / lɪˈkwɪd ɪ ti / (n.) – the state of owning things that can be easily and quickly sold for cash
    Example:

    Money in a bank account has high liquidity because you can get it quickly.


  3. compelling / kəmˈpɛl ɪŋ / (adj.) – very strong or interesting, making people want to believe or pay attention
    Example:

    The risk of serious illness is a compelling reason to stop smoking.


  4. tangible / ˈtæn dʒə bəl / (adj.) – relating to something real and clear enough to be touched, seen, or strongly felt
    Example:

    The charity gave flood victims tangible help, like food and clothing.


  5. tolerance / ˈtɒl ər əns / (n.) – the ability to accept or deal with something difficult or unpleasant without giving up
    Example:

    He’s comfortable taking financial risks because he has a high tolerance for risk.


Article

Read the text below.

Used condominium prices in the Tokyo metropolitan area have hit an all-time high, a trend driven by a combination of factors, including a shortage of new properties and ongoing low interest rates. In this environment, real estate investment is gaining attention as a stable way to build wealth.


Real estate investment is attractive because it could provide stable returns and capital gains with less volatility than the stock market. However, it also comes with its own unique risks. Potential owners face challenges such as vacancy risk, unexpected repair costs, and low liquidity, which means it can be difficult to sell a property quickly for cash. The market is also sensitive to changes in interest rates, and traditional real estate investing requires significant effort and expert knowledge.


To ease these challenges, new technology-based services are making it easier for beginners to enter the market. One such platform, RENOSY, offers all-in-one support, from finding and buying a property to managing it. A key feature is its AI-powered tool that analyzes data to suggest properties that fit a user’s criteria, which is expected to mitigate investment risk. The service’s reliability is also backed by the company being publicly traded, which provides transparency and a proven track record.


Of course, real estate is not the only path. For those seeking a different approach, financial products like stocks and mutual funds offer a compelling alternative. In direct contrast to the challenges of property investment, they provide high liquidity and a much lower barrier to entry. However, this flexibility often comes with greater day-to-day market volatility, a key difference from the tangible stability of real estate.


Ultimately, the best way to build assets depends on a person’s financial goals and their risk tolerance. Whether someone chooses the stability of property, now more accessible through technology, or the growth potential of other investments requires carefully weighing the pros and cons of each option.


This article was created in collaboration with GA technologies.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The article mentions challenges in real estate investing, such as the amount of work involved and various risks. If you were to start investing, what would be your biggest concern or fear? What kind of information or support would help you overcome that anxiety? Discuss.
  • As the article points out, real estate can offer stability, while stocks might provide greater growth potential. When it comes to building assets, which approach do you think is generally more appealing: prioritizing stability or growth? Explain the reasoning behind your choice. For example, what kind of financial goals or risk tolerance might lead a person to choose one over the other? Discuss.

Discussion B

  • The article introduces RENOSY, a platform that uses AI to recommend investment properties. How do you feel about entrusting the selection of a major investment to AI? What are the advantages of letting AI make the choice, compared to a human making their own decision? Discuss.
  • The article cites the parent company being publicly traded and having a proven track record as reasons for its reliability. When you choose a new service or product, how much importance do you place on factors like a proven track record (ex. being #1 in sales) and corporate reliability (ex. being a publicly traded company)? What other factors do you consider essential for judging trustworthiness? Discuss.