Topic: If Bitcoin goes up very high should i buy a house? - page 99. (Read 133923 times)

That really depends on where you want ot buy a house IMO. If you were going to buy it in Monaco, then I'd say, YES, yes, definitely do it. But if you are going to buy it in some place where prices on real estate might drop in the future, I'd stick to renting and hold my Bitcoins because the price of BTC will not drop in the future, no doubt about it.

No matter where you live and what tax rules there are, you should get independent advice from an accountant, preferably somebody who understands real estate. If you buy a house there are going to be various implications on the way you are taxed, not only when you buy it (for example here you have to pay a 12% registration fee on top of the purchase price and now for new houses (here) you not only have to pay VAT on the house, but also on the land the house is built on). Once you own the house, your annual tax return will also change, for example here the perceived value of the house (as if it would be rented out) is added to your income, so you get taxed on that too (Rateable Value).

But owning a house means you can also get a house loan and in many countries you can deduct the interest you pay from your income

So... buying a house might be a lot more expensive than just the price sticker you see at the for sale sign and owning a house will be a lot more expensive than you can imagine, especially if it's the first time you own a house... See my previous post: a house is a liability, not an asset.

You probably don't want a mortgage on the house because then the bank owns it until you pay off the last bit after 25 years, but you might consider getting a loan so you can compensate the extra income taxes like Rateable Value.

If you get a mortgage than your house is not yours but you can also get a real estate loan (without the house as a deposit) from the bank where if you have 100% cash down for the house, you give this money as collateral (so no mortgage on the house) and you pay only the interest on the loan (meaning you get a bullet loan with 100% money deposited in a pledge account). At the end of the loan (10 years, 25 years... ) you have to pay up the 100% value of the loan too of course.

This formula has 2 advantages, first you are always the owner of the house, there is no mortgage. Secondly you can take advantage of the interest you pay by deducting it from your income. And the money in the pledge account is actively invested (by the bank) so it can grow to compensate for inflation, with a bit of luck you might even beat inflation but as the bank is investing it for you, they will milk your every turn. Some banks only want to invest in funds with a 100% money back guarantee and these funds always underperform the market).

If you want to buy a house, don't just talk to a real estate broker and your banker, but also get an income tax accountant's advice

disclaimer: I am not an accountant but I do own several houses.

A house (your house, or even a second rental house) is not an asset. It's a liability.

Houses cost money... even after you bought it and paid the extra notary and registration taxes: real estate taxes, insurance, maintenance, keeping it heated in the winter to prevent the plumbing to freeze over, if it's a rental house good luck in getting a 100% occupancy. Even been stuck with a bad tenant who decided to trash the house after not paying the rent for 3 months and then 2 months of court to get him evicted? If the house is empty for a certain period, depending on in which country/city the house is located, there are various government penalties and taxes are levied on vacancy.

A house, like any liability is not always a good investment on the long term. It's a common misconception spread by real estate agents and mortgage providers to lure in the punters.

If you buy a house to live in, make sure you have a steady income to pay for real estate taxes, insurance, maintenance and keeping it heated an connected to the electricity grid.

A house, like any asset or holding is always a good investment on the long term.

Since btc main purpose is a fluctuating assest selling and taking your profit is a wise thing to do... buy low sell high..

Yeah, owning a house is definitely a good peace of mind... I don't like this idea of renting forever. If you can, just live with your parents and inherit whatever house you can, meanwhile just keep on stacking Bitcoin. Unfortunately we poor fellas are stuck in mom's basement unless we want to pay rent and lose the possibility of savings.

that is a very good thought and dream. But you should also ask yourself. what if it comes down? what will I do? have you put all your eggs in one basket? are you over ambitious? to answer your question, if the value goes up hoping it will, Reward yourself with the desires of your heart. buy yourself a house or a car if possible. All the best friend.

This is nice idea, from the other hand you will loose your BTC  Instead invest your BTC somewhere, get double profit and from double profit buy the house, so you will get both BTC and house.   

Why not bruh, uh?

Yes holding bitcoin by keeping with faith on bitcoin must be appreciated. They never will be get disappointed for the faith they are having on bitcoin. Bitcoin will pool in very near future so that you can invest your bitcoin into real estate for buying your dream property.

I agree. Keeping a little patience and holding back your Bitcoins to see if the value goes up is always a sound decision. Plus a real estate investment is safe now and can give a better return if you ever want to sell it to raise capital.

I think buying house with lots of money is just making your money stock on the fixed capital which never or slightly grows. Try to invest in multiple places to distribute the risk of loss. If you distribute you will also be in safe side from this ongoing bitcoin price volatility. 

This is true of any asset. Hindsight is always 20/20, and pretty worthless for investing in the future.

I think you should not directly buy house it goes to moon.
If you can buy house with it so it means it may even get bigger and bigger to be accepted as whole new money and it would be even more valuable.

your post is obviously purposed you want to sell it to fiat then use a fiat for buy a house.
well i think better to buy a house/property with bitcoin
there are somesite which accept bitcoin for buy a house or even property http://bitcoin-realestate.com/ but i'm not sure it legit or not.

the nature of bitcoin itself, is promoting its own holding, this because it's very hard to get more bitcoin, unless you're willing to pay more

so if someone want to buy an house with his only 10 btc, he must wait for the price to skyrocket on the crazy level, this is true for the majority of little holders, and for their different purpose

Always good to cash out a chunk of your investment when you make a good profit.

I've made big mistakes in the past holding on to a stock for example and then watch it correct afterwards

That is right. We have to use bitcoin to give its value. If we all hold bitcoin as an investment, bitcoin has no value at all.

Go for it before the bubble pops, I would say
Could be a great investment if you find a good deal!

Much depends on what country you're in. In the UK you would've multiplied your buying power quite radically if you'd bought in the right places.

When you deduct out the housing bubble, houses have generally appreciated at the rate of inflation, so you're not making anything so much as keeping what you started with in terms of purchasing power.