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.