Topic: Bitcoins dominance over Real Estate in terms of profitability - page 2. (Read 423 times)
Depending on where you live, your answer would be a bit different, if your country is in midrange, it's a bit of a balance but if you live in a country that's got like really low property value for real estate then definitely, it's going to be bitcoin that you'll say is the more dominant, if you live in a country that's really expensive, I think that you'd probably stick more on investing in real estate because it's already a time bomb that it's so expensive right now and that you might see more profit there because of how there's a possibility that the profit from bitcoin and real estate is close and the difference is negligible.
Last year my sister in law told me I should use some of my bitcoin to buy a house because it'll be a better investment. I straight up laughed at her. She was surprised when I said a house is a much much worse investment than bitcoin.
The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.
You should probably bring back up this conversation with your sister and see where she stands with his claim, with the possibility and rumors of a repeat of 2008 housing crisis, it's probably in the best of your time that you will do whatever you can to hodl on to that bitcoin and wait for that crisis to happen, in my opinion, you'd probably be able to buy more properties when you continue hodling that bitcoin and then selling it when another price pump happens. If your sister will still have the same stance since your last talk, then I guess some people are just too stubborn to deal with things and that they don't like the idea that what they believe in is wrong or that they were suddenly proven wrong. The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.
Last year my sister in law told me I should use some of my bitcoin to buy a house because it'll be a better investment. I straight up laughed at her. She was surprised when I said a house is a much much worse investment than bitcoin.
The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.
I too would want to buy a house using bitcoin but if you sell your bitcoin now that would be a bad idea. Bull run is coming and we will see bitcoin reach heights that has never been reached before. I guess if I get enough profit from bitcoin, I’ll buy a house too someday. The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.
Last year my sister in law told me I should use some of my bitcoin to buy a house because it'll be a better investment. I straight up laughed at her. She was surprised when I said a house is a much much worse investment than bitcoin.
The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.
The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.
Are you sure that we won't experience any stress when investing in bitcoin? This would actually be a bias to say that investing in bitcoin is more comfortable and secure than real estate. We should be fair and need to accept the fact that there is no asset that is both safe and can bring high profits and vice versa, low profits, low risks.
I believe most people know that real estate is the best investment and everyone's dream but because we are bitcoin investors and we don't have too much money to own real estate, we are trying to fool ourselves that bitcoin is better.
To be honest, I don't feel comfortable investing large amounts of money in bitcoin but I feel very safe owning real estate and generating passive income from it.
It is true that investing in bitcoin will bring much better returns than any investment, not only real estate but everything has its price and the higher the return, the higher the risk.
Yes I'm 100% sure I don't have any stress when investing in Bitcoin and I don't fool myself.I believe most people know that real estate is the best investment and everyone's dream but because we are bitcoin investors and we don't have too much money to own real estate, we are trying to fool ourselves that bitcoin is better.
To be honest, I don't feel comfortable investing large amounts of money in bitcoin but I feel very safe owning real estate and generating passive income from it.
It is true that investing in bitcoin will bring much better returns than any investment, not only real estate but everything has its price and the higher the return, the higher the risk.
I live in a country where laws and regulations are useless for middle and poor class, even I have ownership documents of my real estate, but there could be a mafia that want to get my real estate by using fake ownership documents. The mafia can cooperate with the government, if I can't hire a popular and expensive lawyer, I would lose in the court. Imagine, you already working hard to buy real estate, but your money will gone in a second either lose or use to hire a lawyer.
It's true? I have never been in your situation nor heard anything similar to your story and I don't think it could happen like that.
I don't know where you're from, but what's happening to you doesn't mean it's happening to everyone. And I believe you also know how safe real estate is from the news and reviews from people around the world but only because you have been in situations that we have not experienced and you have aversion to real estate.
Nowadays when it comes to safe havens, people immediately think of real estate and gold, no one says it's bitcoin, and when it comes to assets that can bring the best returns, perhaps people will talking about bitcoin.
Yes, but it does not give a yield (1.). Although so far in total return bitcoin outperforms good real estate in the sum of appreciation and yield.
Technically you're correct and I also agree with you.However, some people choose to stake their coins in centralized exchanges in order to earn yield.
Are you sure that we won't experience any stress when investing in bitcoin? This would actually be a bias to say that investing in bitcoin is more comfortable and secure than real estate. We should be fair and need to accept the fact that there is no asset that is both safe and can bring high profits and vice versa, low profits, low risks.
I believe most people know that real estate is the best investment and everyone's dream but because we are bitcoin investors and we don't have too much money to own real estate, we are trying to fool ourselves that bitcoin is better.
To be honest, I don't feel comfortable investing large amounts of money in bitcoin but I feel very safe owning real estate and generating passive income from it.
It is true that investing in bitcoin will bring much better returns than any investment, not only real estate but everything has its price and the higher the return, the higher the risk.
Yes I'm 100% sure I don't have any stress when investing in Bitcoin and I don't fool myself.I believe most people know that real estate is the best investment and everyone's dream but because we are bitcoin investors and we don't have too much money to own real estate, we are trying to fool ourselves that bitcoin is better.
To be honest, I don't feel comfortable investing large amounts of money in bitcoin but I feel very safe owning real estate and generating passive income from it.
It is true that investing in bitcoin will bring much better returns than any investment, not only real estate but everything has its price and the higher the return, the higher the risk.
I live in a country where laws and regulations are useless for middle and poor class, even I have ownership documents of my real estate, but there could be a mafia that want to get my real estate by using fake ownership documents. The mafia can cooperate with the government, if I can't hire a popular and expensive lawyer, I would lose in the court. Imagine, you already working hard to buy real estate, but your money will gone in a second either lose or use to hire a lawyer.
Well, Bitcoin investment is obviously more profitable than any other asset classes available in the investment market, worldwide. If you are looking at a net profit, then there's no competitor for Bitcoin. However, a real estate property will give you a recurring income if you rent it out. Surely, a commercial property will generate more rent than a residential one. There's no rocket science.
The big catch here is the tax benefits. In many countries, bitcoin income is taxed at 30% or even higher without the choice of offsetting your losses. At the same time, if you take out bank loan to buy a property, you will get income tax benefits on the amount you are paying as bank interest. Different countries have different laws, but if I am talking from the perspective of country, I will get a huge tax benefit if I take out a bank loan. Also the tax benefit will continue as long as the loan continues.
Bitcoin is the greatest investment product, no doubt! But real estate still hasn't lost its charm, either!
The big catch here is the tax benefits. In many countries, bitcoin income is taxed at 30% or even higher without the choice of offsetting your losses. At the same time, if you take out bank loan to buy a property, you will get income tax benefits on the amount you are paying as bank interest. Different countries have different laws, but if I am talking from the perspective of country, I will get a huge tax benefit if I take out a bank loan. Also the tax benefit will continue as long as the loan continues.
Bitcoin is the greatest investment product, no doubt! But real estate still hasn't lost its charm, either!
Many people still consider real estate a good investment (especially the older generation of investors). Let's try to calculate and check if this is true.
My friend has a property (apartment) in one of the most expensive cities in the world* (Moscow) with an area of ~65 sq.m (three-room). The market value of this property is approximately ~$170,000. Such an apartment can be rented out for approximately $500-700 per month. This will bring a profit of $6000-8500 per year. It will take 28-20 years for the purchase of a similar residential property to generate a return equal to the cost of this apartment (doubling the money invested).
These are not entirely accurate, but only approximate calculations aimed at showing an approximate “picture”. This does not take into account inflation, changes in the value of real estate (the “body” of the deposit) and the cost of rent (“interest” on the deposit).
Of course, profitability may differ when choosing residential or commercial real estate. Commercial rent will be more profitable, but with such rent many problems arise, such as finding a long-term tenant, because with every downtime in finding a new (short-term) tenant, money is lost. The next “headache” is the repair costs (which will certainly arise) and again drain money from you. And add to everything property taxes and other deductions, for example, tax (13-30% depending on tax residence status) on the sale transaction if the property was owned for less than 3-5 years (as in the country in which my friend’s apartment is located). One should take into account the likelihood of a fall in the value of real estate and rent due to the deterioration of the situation in the area or city as a whole due to environmental problems (pollution) or man-made (military operations), natural phenomena (fires, floods, volcanoes).
Whereas with bitcoin (compared to real estate), you just buy it and hodl it safely. It seems impossible to come up with more passive investments. Do you feel an advantage in choosing real estate investment over bitcoin? I will not ask the question of what you would prefer to invest in here, because it is already clear what the majority will choose.
With this post, I wanted to strengthen the conviction of BTC-investors that their choice was correct, because instead of buying a conditional one apartment, in 10 years you will be able to afford to buy several (probably more than 1) apartments (depending on the country and location). Like Didi Taihuttu, who sold his house and bought bitcoin.
* - Static cost of 1 sq.m. residential real estate for 2023 by city of the world (according to various sources from the Internet).
1 - Monaco (73,6k - 54,7k euro)
2 - Hong Kong (27,7k - 18,6k euro)
3 - Switzerland (Zurich) (22,3k - 13,7k euro)
4 - South Korea (Seoul) (19,5k - 10,6k euro)
5 - Singapore (18,5k - 10,7k euro)
6 - Great Britain, London) (15,4k - 8,9k euro)
7 - Israel, Tel Aviv-Yafo) (14,8k - 9,9k euro)
8 - USA (New York) (14,2 k - 9,3 k euro)
9 - France (Paris) (12,4 k - 8,7k euro)
10 - Cyprus (Limassol) (3,3k - 2,3k euro) - A friend’s apartment is located at approximately this price level (~2,4k euro, Moscow).
Yes BTc can offer you some more benefits in terms of profit that Real estate but I think you have missed the most important aspect of real estate that's risk free invwsem.My friend has a property (apartment) in one of the most expensive cities in the world* (Moscow) with an area of ~65 sq.m (three-room). The market value of this property is approximately ~$170,000. Such an apartment can be rented out for approximately $500-700 per month. This will bring a profit of $6000-8500 per year. It will take 28-20 years for the purchase of a similar residential property to generate a return equal to the cost of this apartment (doubling the money invested).
These are not entirely accurate, but only approximate calculations aimed at showing an approximate “picture”. This does not take into account inflation, changes in the value of real estate (the “body” of the deposit) and the cost of rent (“interest” on the deposit).
Of course, profitability may differ when choosing residential or commercial real estate. Commercial rent will be more profitable, but with such rent many problems arise, such as finding a long-term tenant, because with every downtime in finding a new (short-term) tenant, money is lost. The next “headache” is the repair costs (which will certainly arise) and again drain money from you. And add to everything property taxes and other deductions, for example, tax (13-30% depending on tax residence status) on the sale transaction if the property was owned for less than 3-5 years (as in the country in which my friend’s apartment is located). One should take into account the likelihood of a fall in the value of real estate and rent due to the deterioration of the situation in the area or city as a whole due to environmental problems (pollution) or man-made (military operations), natural phenomena (fires, floods, volcanoes).
Bitcoin in 2 years (to date) has more than doubled in price (and this is not the limit) from $29k to $67k. Not to mention the 10-year interval, where the profitability of bitcoin turns out to be simply crazy compared to real estate.
Whereas with bitcoin (compared to real estate), you just buy it and hodl it safely. It seems impossible to come up with more passive investments. Do you feel an advantage in choosing real estate investment over bitcoin? I will not ask the question of what you would prefer to invest in here, because it is already clear what the majority will choose.
With this post, I wanted to strengthen the conviction of BTC-investors that their choice was correct, because instead of buying a conditional one apartment, in 10 years you will be able to afford to buy several (probably more than 1) apartments (depending on the country and location). Like Didi Taihuttu, who sold his house and bought bitcoin.
* - Static cost of 1 sq.m. residential real estate for 2023 by city of the world (according to various sources from the Internet).
1 - Monaco (73,6k - 54,7k euro)
2 - Hong Kong (27,7k - 18,6k euro)
3 - Switzerland (Zurich) (22,3k - 13,7k euro)
4 - South Korea (Seoul) (19,5k - 10,6k euro)
5 - Singapore (18,5k - 10,7k euro)
6 - Great Britain, London) (15,4k - 8,9k euro)
7 - Israel, Tel Aviv-Yafo) (14,8k - 9,9k euro)
8 - USA (New York) (14,2 k - 9,3 k euro)
9 - France (Paris) (12,4 k - 8,7k euro)
10 - Cyprus (Limassol) (3,3k - 2,3k euro) - A friend’s apartment is located at approximately this price level (~2,4k euro, Moscow).
I don't see anything in this world except real estate which can give you profits without any loss. Btc requires a long term strategic approach and even then you can have losses but thats not the case in real estate.
Real estate is a strong asset here profit is guaranteed but not instant or quickly. it require long time.
I also believe that real estate is quite a good investment to make. It seems that it is one of the few investments that increase in value over time. If you buy a good house now, see again in 10 years and surely it will be even more expensive than when you bought it. It does require you to be patient if you want to maximize profit though so if you are looking for roi right immediately then real estate might not be the best for you.
The investors who consider buying and building on a land to rent are those concerned about long term benefit from the stable income they have been able to setup which will come monthly or annually as agreed by the tenants occupying the property.
If you want an active flow of income, you can buy a property and rent it. Some people think that it's such a headache because renting it to people since they need to meet different people and keep maintaining the property. Compared to if you just sell it to one person, you get the money and that's it.Quote
Bitcoin investment is good, and real estate is not only for the old.
It's just that younger generations are more knowledgeable about crypto and bitcoin but I still see people even with younger people interested in real estate. hero member
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You're correct with your concerns but if you're in the bitcoin market for the long-term, are you really going to care so much about price fluctuations and dips because I don't think you'll have to care for it given that it's going to be a temporary thing and you're in bitcoin investment for the long-term.
The problem is it's a digital asset and people do not want to rely on that much. A person who has been around Bitcoin for a couple of years may know that Bitcoin will gain what it's lost, it will recover eventually. But, you won't be able to convince others who do not know much about Bitcoin or who have just heard about Bitcoin.
If you talk about me, I know that Bitcoin will give multiple x profits in the long run, still, I am afraid to invest all my wealth because of security reasons. But people do the same thing (Invest their last penny) in other business like Real estate. Bitcoin is here for over a decade. But we cannot really say which one will be the lowest price of Bitcoin this year and what will be the highest price.
Bitcoin in 2 years (to date) has more than doubled in price (and this is not the limit) from $29k to $67k.
The idea of real estate that some investors have is not to buy a land, build a property and then start renting, but to buy a land and resell. That method of real estate can really guarantee double your money or profit that is really huge. The investors who consider buying and building on a land to rent are those concerned about long term benefit from the stable income they have been able to setup which will come monthly or annually as agreed by the tenants occupying the property. Bitcoin investment is good, and real estate is not only for the old. 
You have compiled a good post, I liked it, as it clearly gives us the idea of which investment opportunity is best, buying a place, or property, or buying BTC. To be honest, this post just fits best on my situation, as a few days ago I came to know the price of 1 Marla in my place, and in Pakistan according to Google, 1 Marla is equal to 20.9 square meters. 1 Marla = 20.9sq.m So the price I heard is around 1.5 lac at the moment. I started to have thoughts that I could buy 1 Marla or maybe a little more, but should I keep my funds in BTC or invest those funds in Marla? My plan is not to rent the place, as first I have to buy the property and then have to build a house on it, overall the cost would be a lot, my plan is to just buy the place, and leave it free. And with time its value will increase.
For example last year the price of 1 Marla near my house was 60k pkr, and after 1 year as of now, it is around 1.99x in its price, 1.5 Lac. So, according to you, it will take 10 years to cover the 2x if we will rent the place, but you did not consider the fact that, before making an investment proper research is made, if you are buying a property near no community, like totally in ruine then obviously you will not going to make 2x in a year, but if you buy a place near a growing area then the place value will be more than 2x in a year, so you can easily make 2x to 5x in real estate without renting the place. But still, I prefer to hold my BTC as it require me less documentations and burden, while real estate in my place comes with real problems, like many bad actors try to do bad things while making deal with you over a property.
For example last year the price of 1 Marla near my house was 60k pkr, and after 1 year as of now, it is around 1.99x in its price, 1.5 Lac. So, according to you, it will take 10 years to cover the 2x if we will rent the place, but you did not consider the fact that, before making an investment proper research is made, if you are buying a property near no community, like totally in ruine then obviously you will not going to make 2x in a year, but if you buy a place near a growing area then the place value will be more than 2x in a year, so you can easily make 2x to 5x in real estate without renting the place. But still, I prefer to hold my BTC as it require me less documentations and burden, while real estate in my place comes with real problems, like many bad actors try to do bad things while making deal with you over a property.
The reason why people think real estate is the best investment are because of two reasons:
1. They can rent their real estate to earn passive income.
2. The real estate (land and buildings) price will increase every year.
It means they will earn realized profit and unrealized profit by investing in real estate.
But they forget if not all renters want to rent their real estate, not all renters have good manner, they need to pay renovation bills, they need to pay tax, etc etc.
While investing Bitcoin, it's completely stress free since you're the one who can control your coins.
1. They can rent their real estate to earn passive income.
2. The real estate (land and buildings) price will increase every year.
It means they will earn realized profit and unrealized profit by investing in real estate.
But they forget if not all renters want to rent their real estate, not all renters have good manner, they need to pay renovation bills, they need to pay tax, etc etc.
While investing Bitcoin, it's completely stress free since you're the one who can control your coins.
Real estate is a profitable earning opportunity and many people are preferring real estate because it gives them monthly income like that of a regular job while Bitcoin can give you profit but not on Monthly basis so if you hold it for years then you will be profitable otherwise your profit will not be regular like that of real estate.
Price of both Bitcoin and real estate increases as the time passes but it is necessary to be noted that in case of real estate you have to wait for another person to allow you rent or money for your building or space but in case of Bitcoin you are free to decide about its holding or selling and will not be dependent on another person for profit or income.
Personally, i see investing into real estate as same as saving your your money or rather, berrying your money. Real estate investment takes a lot of time before you can possible get the initial capital you used in making such investment. There are somany variables to be considered when when going into real estate but even after putting all those factors into consideration, what you get at the end of each year rjr making such investment is in most cases too small.
in my region, what's needed to build a five room apartment could be at least $31k, and if you're estimating what you will take as house rent for the apartment in a year, you should be looking at $1k which means that it will take you approximately 31 years to get back the capital of $31k and that's even if we assume that nothing comes along the way in form of maintenance or so.
If you on the other hand invest the $31k into Bitcoin now and in the next two years, Bitcoin just only gets to $100k,
it means that your Bitcoin investments has given you a lot more than you will even get if you're in real estate for at least a period of five years. I even prefer to rent an apartment rather than going into real estate. If fie any reason I'm building a personal apartment, ur should be to own a space that's 100% my own and not necessarily an investment that's supposed to yield any serious incentives along the way. Bitcoin suppases real estate investment any day, anytime.
in my region, what's needed to build a five room apartment could be at least $31k, and if you're estimating what you will take as house rent for the apartment in a year, you should be looking at $1k which means that it will take you approximately 31 years to get back the capital of $31k and that's even if we assume that nothing comes along the way in form of maintenance or so.
If you on the other hand invest the $31k into Bitcoin now and in the next two years, Bitcoin just only gets to $100k,
it means that your Bitcoin investments has given you a lot more than you will even get if you're in real estate for at least a period of five years. I even prefer to rent an apartment rather than going into real estate. If fie any reason I'm building a personal apartment, ur should be to own a space that's 100% my own and not necessarily an investment that's supposed to yield any serious incentives along the way. Bitcoin suppases real estate investment any day, anytime.
Whereas with bitcoin (compared to real estate), you just buy it and hodl it safely. It seems impossible to come up with more passive investments. Do you feel an advantage in choosing real estate investment over bitcoin? I will not ask the question of what you would prefer to invest in here, because it is already clear what the majority will choose.
Your analysis can be right or wrong based on certain considerations. The location of the property is important, as well as the conditions of the country at a particular time. In countries that are experiencing a population explosion, the price of houses can skyrocket, and a person can make a profit. A country in Africa is experiencing a boom in the real estate sector because crude oil and some precious stones have just been discovered. So it has led to the influx of foreign workers, which has also led to an increase in house demands.But on average, I think holding Bitcoin for a long time will be better than investing in real estate. Both of them have both merits and demerits but I will prefer Bitcoin. Bitcoin is more convenient and more predictable for me.
I believe that whether real estate is a good investment depends on a country and on the real estate itself (its location, condition, etc.). In some countries, the rent is just too cheap, so it's hard to make a lot of profit and/or make it fact with real estate. It can be a source of regular passive income, which is great, but it can indeed take decades to even repay the invested amount.
With real estates, people can get passive income from renting it but renting cost can be high or low and it results in tax issue to. You can not feel happy if you have a real estate, you don't use it but only leave it without renting.With Bitcoin, you can choose to take profit (withdraw) it gradually like the strategy of JJG or just hold it, without worry that it will be damaged physically and lose its value. With Bitcoin, if you only hold, don't sell it, no tax issue.
I see more advantage by investing in Bitcoin than in real estate. Easier to get in, get out and no physical damage.
We have different beliefs in terms of investment. While as, we believe in Bitcoin supremecy and ease of investing on it. But traditionally, there is no doubt that real estate is also a good investment. So, whichever you prefer means that you have done your research very well. Whilst Bitcoin isn't tangible, real estate is tangible and the investor or owner can live there if they don't want to rent it out. Otherwise, it's sole purpose is to be rented out and as it gives passive income, the value of it appreciates over time. IMHO, there is no need to compare these two. I would be happy to have both of it. Bitcoins, real estate for renting and also as my own place to live.
I believe that whether real estate is a good investment depends on a country and on the real estate itself (its location, condition, etc.). In some countries, the rent is just too cheap, so it's hard to make a lot of profit and/or make it fact with real estate. It can be a source of regular passive income, which is great, but it can indeed take decades to even repay the invested amount. However, when people buy real estate, selling in the future is considered as well, so if purchasing prices grow over time, then the monthly rent is just a nice bonus, while the real opportunity is in long-term holding and subsequent selling. But I do agree that it can also be hard to do, people should account for taxes and paperwork (as op pointed out), etc. So I do agree that Bitcoin is a better investment because it's easier, more flexible, and probably more profitable in the long run unless one becomes particularly lucky with real estate.
The reason why people think real estate is the best investment are because of two reasons:
1. They can rent their real estate to earn passive income.
2. The real estate (land and buildings) price will increase every year.
It means they will earn realized profit and unrealized profit by investing in real estate.
But they forget if not all renters want to rent their real estate, not all renters have good manner, they need to pay renovation bills, they need to pay tax, etc etc.
While investing Bitcoin, it's completely stress free since you're the one who can control your coins.
1. They can rent their real estate to earn passive income.
2. The real estate (land and buildings) price will increase every year.
It means they will earn realized profit and unrealized profit by investing in real estate.
But they forget if not all renters want to rent their real estate, not all renters have good manner, they need to pay renovation bills, they need to pay tax, etc etc.
While investing Bitcoin, it's completely stress free since you're the one who can control your coins.
Are you sure that we won't experience any stress when investing in bitcoin? This would actually be a bias to say that investing in bitcoin is more comfortable and secure than real estate. We should be fair and need to accept the fact that there is no asset that is both safe and can bring high profits and vice versa, low profits, low risks.
I believe most people know that real estate is the best investment and everyone's dream but because we are bitcoin investors and we don't have too much money to own real estate, we are trying to fool ourselves that bitcoin is better.
To be honest, I don't feel comfortable investing large amounts of money in bitcoin but I feel very safe owning real estate and generating passive income from it.
It is true that investing in bitcoin will bring much better returns than any investment, not only real estate but everything has its price and the higher the return, the higher the risk.
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