Countries with more population and stable economic growth


Real estate investment from overseas to the United States is increasing more and more in the past decade.

The reason is why America's stable economy. Although there are some waves, after 2010, after the Lehman shock, we are continuing economic growth of around 2% of GDP, and it is forecasted that we will maintain an equivalent 2% even in the next 2020.

In addition, the population of Japan is on a declining trend from the peak, but the population of the United States will continue to increase. Currently, the population of over 300 million people is projected to be 400 million by the next 50 years.



■ Prediction of Population Trend · Comparison between Japan and the US (1950 - 2050)



■ Investment from overseas to the United States (Residential property)


 Unit: 1 billion yen



The fact that there are many immigrants means that the demand for rent is high


The fact that the population increases means that the demand for housing is correspondingly high, but most of the increase is immigrants who migrate from the world to America. Increasing population of immigrants leads to higher rental demand, in particular.


The biggest reason is that even if I emigrate to the US as a "resident", I can not immediately buy a house by borrowing a mortgage.


When I start living as a resident with a work visa or a green card in the US, I will first obtain a social security number (SSN). This SSN will follow the history of economic activity in the United States. For example, if you make a credit card and make payment for it, you will be using the card and returning money on the payment date. This will remain as SSN history. Also, if you set up loans such as furniture and cars, the repayment history of it will also remain.


In the United States, economic credibility is aimed at by borrowing money like this and being able to repay it properly on the due date. As we continue these economic activities for about two years, the score pointed to Fico Score gradually increases.


In order to rent a mortgage, in addition to Fico Score, a stable work experience, income of about 2 years, etc. will be criteria for judging. So, in general, going to the United States to earn income and continue economic activities for about 2 years will finally mean that you can borrow a mortgage loan.


As you can see, if many of the population that continues to grow every year is people who live as "immigrants", most of them will initially rent rental housing.

Against this backdrop, it can be said that America is a market for investors who purchase investment properties, which can operate rental apartments with very low vacancy risk.



Second-hand market is active and does not fall


In the real estate market in the United States, used and new construction is about 7: 3, secondary distribution is mainstream. In the United States, the contract price is disclosed and the mechanism of real estate transaction is being developed, so transparency is high, and as a result, secondhand houses are valued properly and are actively traded.


In Japan, when it comes to second hand, the value of the building hardly goes up, it is evaluated only by the value of the land, but in the United States it is reversed. In the case that the building is remodeled or in good condition, the value for that part will be added to the appraised value firmly.


The table below shows the trend of housing prices in the US, but the price of real estate continues to rise over the last 30 years, although there are some ups and downs.



■ Trend of housing price in the US (intermediate price 1970 ~)




As you can see, in the stable US real estate market, you can target both income earnings that come monthly, income gain and capital gains available when you sell.

Stable economic growth, population growth and the real estate market that it supported. These are the attractiveness of real estate investment in America.






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