Real estate vs. Bitcoin

[shoeshineBro]

Deregulation is inconsequential at this point and real estate values have correlation with foreign exchange rates.  Supply in RE alludes to the property you want to purchase or sell. As a result, currency is in demand because of EMH in due to supply/demand. RE is simply one of the assets tied to availability of real loanable funds.  Availability of real loanable funds.  Fx rate.  Cost of goods.  The reason real estate prices are declining is because there is a decline in availability of real loanable funds. A decline in loanable funds is a result of foreign exchange rate decrease.  The market is responding to an inevitable future FX decline. 

[jackg]

I don't know if real estate is declining here yet but I do think it'll come at some point and it's probably overdue in some places.

I was looking at house prices in certain parts of the UK and they've at least tripled in a lot of places in the past 20 years... Which seems quite a dramatic rise.

[arwin100]

Deregulation is inconsequential at this point and real estate values have correlation with foreign exchange rates.  Supply in RE alludes to the property you want to purchase or sell. As a result, currency is in demand because of EMH in due to supply/demand. RE is simply one of the assets tied to availability of real loanable funds.  Availability of real loanable funds.  Fx rate.  Cost of goods.  The reason real estate prices are declining is because there is a decline in availability of real loanable funds. A decline in loanable funds is a result of foreign exchange rate decrease.  The market is responding to an inevitable future FX decline. 

Don't know what make you think that real estate is declining but I will give you an article which can help you understand the situation on real estate here read this https://www.investopedia.com/articles/mortages-real-estate/11/the-truth-about-the-real-estate-market.asp

And for me real estate still a safe investment where we can safely spend our money on, just make sure you go with license broker before buying a house or property.

[pixie85]

As far as real estate goes you have to do market research in your own area. The market will not look alike in the UK, Australia or Japan. Some countries aren't safe places to invest like if you live in Belarus I'd be careful with buying anything.

What foreign exchange rates are you talking about? Probably the Dollar that suffered a big loss in March with the start of the pandemic. It's always like that when some big changes are expected in a country. It will go back up after the election. That is if we don't get a stock market crash in the meantime.

[carlfebz2]

Deregulation is inconsequential at this point and real estate values have correlation with foreign exchange rates.  Supply in RE alludes to the property you want to purchase or sell. As a result, currency is in demand because of EMH in due to supply/demand. RE is simply one of the assets tied to availability of real loanable funds.  Availability of real loanable funds.  Fx rate.  Cost of goods.  The reason real estate prices are declining is because there is a decline in availability of real loanable funds. A decline in loanable funds is a result of foreign exchange rate decrease.  The market is responding to an inevitable future FX decline. 

Don't know what make you think that real estate is declining but I will give you an article which can help you understand the situation on real estate here read this https://www.investopedia.com/articles/mortages-real-estate/11/the-truth-about-the-real-estate-market.asp

And for me real estate still a safe investment where we can safely spend our money on, just make sure you go with license broker before buying a house or property.

Just like on similar topics on comparing Bitcoin/Crypto to Gold and this one on real estate and if we do really make our research and do make out comparison then we can really see or tell the difference.

Security? Long term aspect? These traditional ones will be much preferable but somehow you cant really expect when it comes to the level of profitability which is way more less compared to possible

crypto games but we know that it would really correlate or equaled on the risk involved.So its a matter of choice if someone do like to play safe or would like to gamble out.

[shoeshineBro]

All money goes to crypto as fiat crash and then less money left for mortgages and real estate crash and crypto goes 10x

[Hydrogen]

Real estate could be deflationary in nature similar to bitcoin. Real estate development and construction have not maintained pace with population growth, making real estate scarce(r) in supply. The main bottleneck preventing real estate from appreciating in value is wealth and wage inequality limiting the number of people who can afford to buy it. That malus to consumer purchasing power and demand could devalue real estate below its actual market value.

Bitcoin purchase of real estate could be a standard worth pursuing. If both remain deflationary and stable in nature. Essentially buyers and sellers would be swapping one deflationary asset for another. Which could be preferable to swapping a deflationary asset in real estate for an inflationary fiat currency.

[stompix]

I don't know if real estate is declining here yet but I do think it'll come at some point and it's probably overdue in some places.

I was just reading this article :
https://www.cnbc.com/2020/09/10/manhattan-rental-market-plunges-leaving-15000-empty-apartments.html
Probably some types of properties in large cities in central areas are in for a price correction, at least temporarily but what I see around me is a huge demand for houses in the metropolitan areas of the city, just beyond the city ring ways.

I was looking at house prices in certain parts of the UK and they've at least tripled in a lot of places in the past 20 years... Which seems quite a dramatic rise.

If you think that's bad, how about 5-10 times, apartments going up from the equivalent of 500 euros per sqm2 to an average of 4000.

As far as real estate goes you have to do market research in your own area. The market will not look alike in the UK, Australia or Japan. Some countries aren't safe places to invest like if you live in Belarus I'd be careful with buying anything.  

The market isn't looking alike even in the same country and even in the same state/district.
You can sell right now pretty fast a house in the suburbs at what looks to me as an outrageous price but good luck trying to get rid of a house or land 100-200 km away in a village that is nearly dying even at 1/25 of the price asked in the other place. We have hundreds of these houses that are still up and will be good for living even for another 50 years, not run-down houses like in ghost movies, that you can buy with an annual wage but... forget 50 years, you might be the only one living in the entire village in 5-10 years.

[jackg]

I don't know if real estate is declining here yet but I do think it'll come at some point and it's probably overdue in some places.

I was just reading this article :
https://www.cnbc.com/2020/09/10/manhattan-rental-market-plunges-leaving-15000-empty-apartments.html
Probably some types of properties in large cities in central areas are in for a price correction, at least temporarily but what I see around me is a huge demand for houses in the metropolitan areas of the city, just beyond the city ring ways.

I was looking at house prices in certain parts of the UK and they've at least tripled in a lot of places in the past 20 years... Which seems quite a dramatic rise.

If you think that's bad, how about 5-10 times, apartments going up from the equivalent of 500 euros per sqm2 to an average of 4000.

Yeah I think a lot of Europe is a leveraged version of the west, when they're doing well  house prices skyrocket..

I think there are also places in Spain that could still be quite cheap. (probably due to the lack of tourism there and the fact a lot of people think they're without clean running water).

I did just check the area I live in in a major city also and there seem to be about 70 property listings (in the UK unoccupied properties have a 200% council tax burden because some areas were just holding houses and producing monopolies that drove up prices so far and left semi affordable housing very scarce).
I was flicking through them and some don't even have prices yet (but this could just be because they've been rushed to the market).. It might be a nice time to buy soon (6-12 months) in that case unless cities are back to full capacity in a few months.

[batang_bitcoin]

I don't understand those people that are trying to offer and sell me their real estate properties. I understand that we are in a crisis and the situation isn't doing better for everyone else. But their prices are erraneous and didn't declined. They are in desperate situation and won't pull lower the price for their real estate for sale. It's not the good time for me to buy in the specific area that I want, better to pitch in more for bitcoin just like the usual times.

[abhiseshakana]

I don't understand those people that are trying to offer and sell me their real estate properties. I understand that we are in a crisis and the situation isn't doing better for everyone else. But their prices are erraneous and didn't declined. They are in desperate situation and won't pull lower the price for their real estate for sale. It's not the good time for me to buy in the specific area that I want, better to pitch in more for bitcoin just like the usual times.

Residential property prices from the primary market will never fall. Because a lot of construction materials are still imported and domestic supply is limited, property prices will not decline. In addition, the weakening of the currency against the dollar also had an effect. For second hand properties, the price may be below the market depending on the owner, but not with new projects. Even if the price does not go down, the developer will not increase the price at this time of year, a more feasible strategy is the ease of payment and installments.

The decline in buyers, occurred from the end user buyer segment for housing needs, due to the tendency to refrain from securing their daily needs in the midst of an economic condition shaken by the pandemic. Some buyers from the investor segment still have purchasing power, but still depend on the psychology of the investors themselves.

[Darker45]

I am not aware of the circumstances from where you're speaking but as far as my local situation is concerned, real estate is still one of the most trusted and certainly profitable investments. The increase in the prices of real estate properties is consistently rising, that is, despite the foreign exchange fluctuations. So I don't think there is a significant correlation at all between the two.

Also, I don't want to put a versus in between real estate and Bitcoin. Bitcoin's rise and fall in fiat value makes it a very risky investment, although it could also double in just a matter of weeks. Real estate, on the other hand, is a very safe investment which almost guarantees you consistent and smooth value appreciation over time.

I'd rather have both.

[stompix]

Yeah I think a lot of Europe is a leveraged version of the west, when they're doing well  house prices skyrocket..
I think there are also places in Spain that could still be quite cheap. (probably due to the lack of tourism there and the fact a lot of people think they're without clean running water).

I don't know what's happening there, a few of my friends have been talking about properties in Spain also, but I never figured why some are that cheap, even though on gmaps it seems they are in neighborhoods where people do live and don't seem like no go zones at all so ...They are far cheaper than Prague or Warsaw and this although they are let's say close to bigger cities, so you could theoretically work is a company with an above average Spanish wage.

But as I said, there must be a trick somewhere otherwise I don't think just offer and demand would have dropped the prices that low.

I am not aware of the circumstances from where you're speaking but as far as my local situation is concerned, real estate is still one of the most trusted and certainly profitable investments.

Local! It depends a lot where you're situated and what that area has to offer, I've seen small towns outpacing the capital in terms of price increases, and I'm also aware of some cities that although uninteresting in the job market have such high rents simply because nobody is renting, most of the people living there are owners, old, they don't want to move, there are no real prospects so no new buildings are constructed, good luck finding a place to rent.

But I do think city centers will take a hit, they might recover but those outrageous prices have got to go!

[mu_enrico]

Don't overcomplicate things (about real estate correlation with the exchange rate). A simple supply-demand analysis would be sufficient.
People buy real estate as an investment when the economy is going well (booming), and they expect to sell it for a higher price. Conversely, when the economy is going bust, they will sell it to get liquidity (cash is king stuff).

The lower-middle-class also buys real estate with a loan when the job is paying well. When they go unemployed, they default, and banks sell the house.

[Salauddin1994]

It is better to increase the amount of bitcoin investment than real estate it's demand is much higher as real estate usually controls the exchange rate. Real estate development and management activities conducted entirely under government management by any government ministry or department or any of its subordinate or affiliated departments or agencies or authorities or any statutory authority or autonomous body jointly conducting real estate development and management activities with any developer. Real estate development activities are conducted in joint ventures.

[Ucy]

I was wondering if people are calling for deregulation to solve the problem?

Been hearing about deregulation for a long time now... I guess i supported that word back then but after re-reading the meaning today, I've decided to be a bit more cautious.
Competition should be allowed but it must be healthy and moral. There must be strong and good standards/rules guiding the competitors. Anyone that goes against the good standard and does what is wrong or immoral should be punished.
The government could only lessen the rules by removing the unnecessary, inefficient, bad rules, but stick strongly to morality and good/basic building code/standards/principles for the housing or real-estate sector

[Kakmakr]

As long as the governments are printing toilet paper money, the loanable funds will be available to the people to buy Real estate. This will just reduce the value of the Fiat currencies even further and increase the global debt.

People should rather buy bitcoins and try to hoard it to create a situation where you cultivate a saving culture and not a economy that are built on debt.

Governments are digging their own graves and nobody is taking notice. 

[wxxyrqa]

As long as the governments are printing toilet paper money, the loanable funds will be available to the people to buy Real estate. This will just reduce the value of the Fiat currencies even further and increase the global debt.

People should rather buy bitcoins and try to hoard it to create a situation where you cultivate a saving culture and not a economy that are built on debt.

Governments are digging their own graves and nobody is taking notice. 

Perhaps I make mistakes, but I also choose cryptocurrency as a long-term investment, and also buy residential and office premises for a task on rent, which can give me a constant and stable profit. I believe that this approach for me is insurance not only for today, tomorrow and the near future, but also for the future.

[iyamoxjhian]

hmm I still would choose bitcoin as an investment.. Real Estate nowadays are hard to invest because thst depends in the country, taxations snd location

[exstasie]

Real estate could be deflationary in nature similar to bitcoin. Real estate development and construction have not maintained pace with population growth, making real estate scarce(r) in supply. The main bottleneck preventing real estate from appreciating in value is wealth and wage inequality limiting the number of people who can afford to buy it. That malus to consumer purchasing power and demand could devalue real estate below its actual market value.

You've got it backwards. The actual market value is based on real supply and demand. Houses are only worth what people are able and willing to pay. Similar to Chinese ghost cities, just because you build them doesn't make them valuable or in demand. If a house cost you more to build than what it can sell for on the market, you've just made a poor investment. That's all.