Invest in BTC vs Invest in Real Estate?

[Antonio_Ivanoff]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

[Hydrogen]

I've come to realize many have a negative opinion of zerohedge. Having read their articles over the last 10-15 years, I think I have a different perspective from most and know that some of the things zerohedge has published over the years have turned out to be true. Their opinion is often dissenting as they were one of the few independent publications and there were campaigns waged against their credibility in the past.

As this ZH article says, the value of real estate worldwide may be likely to diminish due to wages not growing at a fast enough rate to sustain rapidly accelerating rent or real estate prices. Demand may inevitably decline which could lead to another massive drop in value across the board once government funded home loan programs and foreign demand for real estate dry up.

Real estate may not be a good investment. Who knows for certain?

London's Property Crash Has Begun

Authored by Damian Reilly via Medium.com,

The average age of a first time mum at London’s Chelsea and Westminster hospital is 37, a statistic that tells you everything you need to know about the choices supposedly affluent city dwellers are being forced to make in the capital. For the middle classes, the cost of living in London — the cost of getting by — long ago went past insane (£17,040: the cost per year of educating a four year-old child at Thomas’s school in Fulham, not including uniform). It’s the incredible price of property, of course, that’s been the engine driving this madness, ratcheting the pressure ever higher on Londoners who don’t own a home while making very wealthy, on paper at least, those who do.

For the last two decades and more, the capital’s property market to all intents and purposes has behaved like a giant Ponzi scheme played on a global scale. Money from all over the world has poured into London bricks, inflating values unrealistically in relation to wages, while the lavish bonuses paid to European bankers working in the City have also stoked momentum responsible for pushing up, for example, the average price of a London semi-detached house by 553 per cent between January 1995 and November 2017, from £133,820 to £873,603.

Over the same period, the average cost of a detached house in the capital went from £257,748 to £1,453,271.

At last, however, the party is over. London property prices, now still flailing cartoonishly in mid-air despite being well over the edge of a cliff, are at the start of what we can call, for want of a better term, a death plunge. Although the carnage is only just beginning in earnest, desperate homeowners looking to sell are already dropping asking prices by tens of thousands of pounds and more. They know the tide is going out quickly.

The reasons you would have to be clinically insane to buy property in London today are blessedly easy to understand. Describing a modern financial disaster normally requires some pretence of understanding, say, derivatives markets or the myriad immensely complex ways international banks package and trade debt. Not this time.

This time the four horsemen of the capital’s property apocalypse  -  Brexit, knackered oil prices, the threat of a socialist government and absolutely astonishing levels of personal debt  -  are so obvious and easy to see coming they might as well be arriving on bright red London buses.

1. Brexit is the most obvious factor frightening away potential buyers. Why would anyone purchase a property now in the capital when such an enormous and ominous question mark hangs in the sky? International investors keen to use London as a glamorous base from which to access European markets are understandably cautious — despite some misleadingly high profile 2017 Chinese investments into landmark London buildings — while the threat of a banker exodus is very real (property prices in Frankfurt are spiking as I type). According to the latest report by property data experts Molior London, sales of homes in the capital dropped by 20 percent in the last quarter of 2017. The report added some 15,000 recently completed luxury apartments remain unsold. For market watchers this is an amazing departure from the status quo, when London new builds were snapped up by global investors often before a brick had been laid.

2. The sustained low oil price is also very bad news for London property, chiefly because it means wealthy Arabs — traditionally big-time investors in the capital — are no longer so wealthy. Since Saudi Arabia went tonto on American shale producers in 2015, opening all the spigots to flood the market with cheap oil in an effort to drive them out of business, Gulf Arabs have had a lot fewer disposable petrodollars to put into Mayfair and Knightsbridge pied-a-terres. In fact, virtually all Gulf states are currently running heavy budget deficits, meaning there is significantly less cash washing about at the top of the London property market — bad news for property sellers down the ladder.

Dr Eckart Woertz, an expert in Gulf economies and senior researcher at the Barcelona Centre for International Affairs, explains: “The low oil price means there is less money to invest. In fact, most Gulf countries are now repatriating money. Look at Saudi Arabia — they have repatriated $200bn of their foreign reserves. The appetite to invest large-scale in London real estate by the big sovereign wealth funds and wealthy individuals is much reduced, which is unsurprising given the yields that are available.”

He adds the recent Riyadh Ritz sheikhdown by Saudi Arabia’s de facto ruler Mohammed bin Salman of 100 or so of the kingdom’s richest men has sent a powerful message to other wealthy Saudis considering investing abroad. “They cannot do it as much now — they cannot wire big amounts. I know someone who has set up a real estate development in a European capital… he has Saudi clients who are telling him they cannot get more than ten million dollars out of the country. Wiring money now raises suspicion.”

3. For those of us who would love to be worried about the difficulty of wiring ten million dollars, the prospect of Jeremy Corbyn waiting in the wings to become Britain’s next Prime Minister is a rather more relatable bad omen for London property values. Corbyn, who at the time of writing was priced at 3–1 to be Britain’s next leader, would head up a socialist government very different in outlook to the nakedly capitalist ones that have presided over the capital’s property boom. Corbyn, for example, has openly advocated large-scale “requisitioning” of homes owned and left empty by wealthy investors in order to give them to the poor. “It cannot be acceptable that in London you have luxury buildings and luxury flats kept as land banking for the future while the homeless and poor look for somewhere to live,” he has said. While undoubtedly a lovely sentiment, Jez, making state confiscation threats out loud isn’t great for shifting houses to minted foreigners.

4. And then there’s perhaps the most overlooked factor affecting the market: after years and years of being squeezed relentlessly, the indigenous London middle class, as it is in the wider UK, is largely skint. According to a recent survey by comparethemarket.com, a person in Britain is on average £8,000 in debt, not including mortgage repayments. Last June, the Bank of England announced UK unsecured consumer credit had gone over £200bn. It’s not all skagheads in tenement blocks running up these debts. Research has repeatedly found that more than a third of people using credit cards on a monthly basis to make ends meet earn between £50k and £70k a year. In London, where living costs are highest, the pain is felt as keenly, if not moreso, as it is anywhere else in the country. With interest rates expected to start rising in earnest this year, that pain can be expected to intensify horribly.

Over the coming months you will read and hear plenty of commentary from interested parties talking up the prospects for London’s property market. All of it will be bull.

London’s property market has not “plateaued”, nor has growth “cooled”. London property values are right now dropping like a stone and there is little to break the fall. Whisper it: 2018 will be the year smug Londoners finally stopped boring on about basement and loft conversions at smart dinner parties.

By the late summer, these same people will be weeping hot tears into cold gazpacho starters and moaning to anyone who’ll listen about negative equity. At long last, the crash has arrived.

https://www.zerohedge.com/news/2018-02-19/londons-property-crash-has-begun

[hase0278]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

I think you should continue what you are thinking about, but not on a real estate company. Just do your own research and buy company shares of companies which are more profitable, specially those who deal with technology. You can also invest that on gold if you want something real, IMO it will never lose all value, it is one of the best to hedge into and to hold for long term.

[uberua]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

I'd continue to hold bitcoin, but withdraw a part and invest in other areas. The Golden Rule of storing and multiplying money is not to hold them in one place.
If we are talking about the cryptocurrency - u need to Build a cryptocurrency portfolio; if we mean savings in general - it's all about investing in start-ups, gold, shares, etc.

[andrey111]

As the saying goes: "Do not keep eggs in one basket." If you have enough money to split them into different portfolios, why not? It will even be more rational. One portfolio will support the other.

[jondel]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

I rather choose your second option. Maybe spend half of crypto profit to invest in stock market.

[wantjokull]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

Real estate surely sucks man. Sooner the population will start growing a lot and this will lead to decreased build up area and tall buildings. This has got to do something with land rates and estates valuations. It will decrease dramatically and thats why I think you should keep your investment into the Bitcoin only. Its good to divide your shares into different types of investment but real estate is not that spot where you should really go. I am thinking you should divide it into few of the ICO projects and keep it all the way crypto type of investment. There are still many chances for the ICO projects to stand alone as profitable project. Just try it out and if you don't jump then you will never experience it

[jaredl]

Divesting some of your profits and putting into real estate is a good idea.

You can invest into a few apartments and earn a good income thru AirBnB.

Or you can look at properties in countries that are growing at a fast pace and invest there.

I have bought an apartment in Vietnam and it will generate a rental income for me and at the same time, I will be able to enjoy capital growth in a few years; regardless of the price of crypto.

[Nhor1011]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

          If you think wisely you will subdivided it...For me 30% will go to my bitcoin investment,20%for trading altcoins,30%for real estate investment or put a small but stable business,and the remaining 20% for myself needs. It is difficult to secure all your bitcoin just in your wallet,there is a lot of thief and hackers somewhere near. But ofcourse it is your discision ,do what you know is good and you think is better

[Direwolve735]

I think you should ivest some part of your profit from cryptos in something else. That could be real estate, company shares, business. In order to make the investment pay off and be successful, you can not invest your entire fortune in any one project. Otherwise, you play the game "all or nothing."  When your investments are distributed, in case of failure, you will lose only some part, not everything entirely. This "distributed" investment option is safer and more wise. You may not get a quick profit, but you will be calm for your investments.

[chocomartin]

Go for it! Also try to spread out your money a little more, read up on stocks. Having your investments spread out would maximize potential gain and minimize the risk of any losses.

[alyssa85]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

My two cents:

Don't invest in shares. They are a bigger bubble than anything else out there. Wait a few years till the stock bubble has burst before buying shares.

If you can buy real estate without incurring much debt, then do it. Everyone needs to live somewhere, and making sure you have your shelter secure should be a priority for everyone.

Keep some money in cash in case the bitcoin price drops and you want to buy some at a bargain price.

[orions.belt19]

As the saying goes: "Do not keep eggs in one basket." If you have enough money to split them into different portfolios, why not? It will even be more rational. One portfolio will support the other.

It's good for an investor to diversify their portfolio. If one fails, they would still have some back up. Investors don't usually focus on just one asset. It also depends on your needs and intention. Know that by investing in real estate, you may not expect some profit or a return of investment so easily or in a instant.

Real estate is always a good investment, however it's harder to liquidate. My advice if you intend on investing on real estate is to check out lands which are still undergoing development but have the potential to be developed in the future. Somewhere far from the city but is starting to get urbanized. The land in a location like that would surely appreciate/accrue in the future.

[Proton2233]

I like investing in bitcoin more. This is not only because the return on investment in bitcoin is higher. This asset is more liquid and it is easier to sell bitcoin in case of urgent need for money. In addition, the maintenance of real estate requires large costs. This significantly reduces the profitability of this business.

[zenrol28]

I prefer only spending part of your profit in cryptocurrency into something IRL. So when time comes one of your investments fell you still have other source of profits. And if both went sky high it will be a win-win. Just like what others say "don't put all in one basket."

[OuterTech]

I don't think there are any reall company accept Bitcoin for investment so it's impossible to invest your Bitcoin to any real company to receive passive income monthly or yearly . Why don't you just hold your BTC till the price of BTC rise to new ATH? I think with trading or just holding are best options for you at the moment. Rememer don't invest your Bitcoin to any ponzi scheme although your friend invite you to join ).

[BillCoin]

It's really hard to determine which investment is better, as real estate investments could be counted for low risk investments, as they have an history of keeping their value and usually go up at the long run.
While bitcoin is maybe count as an asset but I assume that we can say it is a high risk investment.
It's price tends to go up and down really frequently and you shouldn't put money that you can't afford to lose in that because you need to be prepared to lose it.

[VitKoyn]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

I'm a Bitcoin hodler but I'm gonna be lying if I will say that I don't sell some of my Bitcoins sometimes like others do. We can't exactly tell when will Bitcoin price going to rise or correct so I like the idea of spending your profits (not all) and to spend it in other types of investment, it could be another cryptocurrency, a stock, real estate or if possible use it to have your own business, even small business will be good. If you want to invest in real estate then don't hesitate because it is also profitable, or own a rental properties and rent it on businesses. You shouldn't be stuck in one investment, you just have to choose on what you are good at and what you understand (of course you will not invest on things that you don't understand).

[Dutchyyy]

Bitcoin chart is going up and down some times I am thinking maybe I should invest part of my BTC (at least the part of the profit  I’ve made on crypto) into something real?!
Let’s say I can buy share of real estate company and get the part of profit (50-100% per Year).
  
Should I
                Spend all my BTC on that shares?
                Spend small (profit) part?
                Or just do nothing and wait?

?!

I’ll do appreciate for answers with any suggestions and recommendations!

There is no legitimate real estate company offering 50-100% yearly ROI. It must be a scam or pyramid.

I personally am splitting my crypto profits into real estates and investment funds.

[hodlftw]

Any investment outside of crypto will be good in essence because you will be diversifying more. Just because real estate is profitable doesn't mean everybody profits, it too is a zero sum game. Knowing this entry is just as important in real estate as it is in crypto, have a bad entry and you will never make profit. Lastly do also know that the real estate, stock, and every other asset class is in a historically huge bubble. I wouldn't personally get involved right now, I would wait a couple years until things died down a little bit.