If Bitcoin goes up very high should i buy a house?

[Pierre 2]

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.

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[jaysabi]

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.

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.

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

[amacar2]

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. 

[Miracal]

Because a house can't be bought with 1BTC - 100BTC.

You can buy a house after a few bullruns with that amounth of coins.

Remember the pizza guy with his 10.000 coins? think what you can buy in 2015 with all those coins.

Reinvesting youre profit in a new house is a real good move imo.

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.

[davinchi]

Because a house can't be bought with 1BTC - 100BTC.

You can buy a house after a few bullruns with that amounth of coins.

Remember the pizza guy with his 10.000 coins? think what you can buy in 2015 with all those coins.

Reinvesting youre profit in a new house is a real good move imo.

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.

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.

[Luqman]

Why not bruh, uh?

[HeroCat]

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.   

[erickimani]

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.

[oblivi]

I'd say do whatever you have to do to own a house, living on rent/mortgage is just a huge burden and if price becomes higher and you have a chance to sell your holdings in exchange for a self owned home, then I'd say go for it. And the money you save in future from no mortgage/rent on your head you can start to buy it back slowly.

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.

[HarryKPeters]

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..

[SolarSilver]

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

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.

[SolarSilver]

If Bitcoin goes up very high should i buy a house?

Ive been thinking if it went into very high figures i could cash out 80-90% of bitcoin and buy a house outright with no mortgage.  Is that even a good idea though? - basically 80% of networth in a house hmmm.  On the other hand i dont want to have a mortgage and im fed up with renting due to landlords, letting agents and lack of control.

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.

[Betwrong]

If Bitcoin goes up very high should i buy a house?

Ive been thinking if it went into very high figures i could cash out 80-90% of bitcoin and buy a house outright with no mortgage.  Is that even a good idea though? - basically 80% of networth in a house hmmm.  On the other hand i dont want to have a mortgage and im fed up with renting due to landlords, letting agents and lack of control.

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.

[jaysabi]

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

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 costing money to maintain doesn't make it not an asset. If the house has any value, it's an asset. That's literally the definition of an asset. If you want to dispute whether it's a good investment, fair enough, but it is factually an asset.

[enhu]

Properties are good investment, its a hedge against inflation and you save rent too.
After some time, you can sell your properties as well and gain more than half of it especially if its located in the business area.

[roadbits]

Properties are good investment, its a hedge against inflation and you save rent too.
After some time, you can sell your properties as well and gain more than half of it especially if its located in the business area.

That is a good idea but to sell house one must buy another house to stay so if any one have only one house then they can save rents but can't sell because again either they need to stay in rental or need to buy another house. If one staying in very good area and ready to move out of the city then they can make a profit from selling house which is located in high price area and go out from the city area.

[SolarSilver]

A house costing money to maintain doesn't make it not an asset. If the house has any value, it's an asset. That's literally the definition of an asset. If you want to dispute whether it's a good investment, fair enough, but it is factually an asset.

Definition: An asset puts money in your pocket. A liability is costing you money.

The longer you keep a liability, the more it will cost you.

A house is not earning you money, unless you can rent it out and even then it's not always break even.

It's an obvious mistake to label your own house as an asset, and most of the confusion is deliberate by the industry that builds and sells houses. Real estate agents and bankers will keep insisting on spreading the myth that a house is an asset but it's not.

The fact that you save rental money by living in your own house does not make it an asset, the same way that having a car is saving you taxi money.

Is a car an asset? A car has (any) value, so that would make it an asset in your definition, correct? It's clear a car is a liability because it is costing you tax money to keep it on the road, it is costing you insurance annually, you have to pay for a parking space or garage to just store it and if you actually drive it, it's costing you fuel. And intuitively you see it as a liability because it actually (most of the times unless it's a rare classic car) decreases in value when you try to resell it.

Yes house prices can go up, but that does not mean it's an asset. If you think houses go up in value then you never owned and maintained a house. Any house older than 20 year will cost you a fortune in maintenance to keep it up to specs with for example isolation and heating. A house 40 years old has little value unless you want to redo all the plumbing and electricity.

So why do house prices sometimes go up, even if after they are sold they are gutted and completely refurbished? Because of the location: land prices go up and having a casco of a house on it, means you can rebuild it within the existing zoning restriction rules.

Houses are not an asset. If it would be an asset, the bigger the home, the more money it would put in your pocket. The more houses you owned, the money they would generate...

http://lmgtfy.com/?q=the+house+you+live+in+is+not+an+asset

I know it's confrontational for many people aspiring to own a house (and please don't take it personally that I'm pointing this out jaysabi) but trust me: your house is not an asset

Don't take my word for it, google around

[Jimbola3]

If you have more than enough bitcoin to buy a house, then do it. You need to leave some bitcoin for that to appreciate further.

[pitham1]

Properties are good investment, its a hedge against inflation and you save rent too.
After some time, you can sell your properties as well and gain more than half of it especially if its located in the business area.

Real estate, over the long term, tends to underperform the equity markets.
Plus, it is illiquid.
These are factors you should consider before buying a house as an investment.

[devil11]

Yeah, you can a buy a beautiful house if you have atleast 100 BTC or more to get a house beautiful, fully decorated with lawn, swimming pool and other facilities of life in it !