Your opinion is highly needed!

[habilamesure]

Hello guys, I guess we're all doing? Please don't pay attention to my rank!

I just wanna share a few though which I believe will help some persons in this forum in make some crucial decision with the help of your advice.

Few days ago I came across a catching post on twitter, which involves tough decision making, sorry for I can't share image here, rather i will give a summary of what the post is all about then we will delibrate on it.


Someone was proposing of taking a loan of $450k from the bank of which the money is to be used to buy a new house, and this person needs to make a down payment $50k before the money will be released to him

Now looking at the current bull in the bitcoin market, he is now having two side thoughts, not minding the fact that both the Crypto and real estate market are volatile.

Now this are this thought;

1) if he should take the loan of $450k and then make the down payment of $50k the buy the new house

Or

2) Use the $50k to invest in bitcoin and wait for the next 5years to buy the house While he keeps paying rent for the next 5 years?

This decision is a tough one indeed to make, looking at the fact that real estate investment is a type of investment that you make and never experienced any loss even though it market is volatile, a $100 investment in real estate can bring $300 possible return within the next 365days

Bitcoin on the other hand is a booming cutting edge investment that is gaining tractions every here and there in every corner of the earth. $100 investment in bitcoin can as well bring you $300 with the next 365days.

Hence, Both markets are competitive.

Now in your opinion, what option do you think is best in this kind of situation?

Your opinion is highly needed

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[dansus021]

Well is hard to determine. If i were that guy i will take the loan and build business first rather buy new home and invest some of it to safe haven investment like Gold but trying invest in bitcoin is okay but not in this current price market 

[Darker45]

I'd say don't risk your house for Bitcoin. Pay that down payment, take the loan money, and buy that house. Start from there.

If you're gonna make some savings in the very near future after you got your house then you could invest a portion of those in Bitcoin.

As cliché as it may sound, it is always best not to invest an amount you can't afford to lose. Surely enough, you can't afford to lose your house. Build it first!

[imteaz]

But remember Bitcoin is very risky, It might go up to $50k in the next 2 years, It might be at $3k in the next 2 years, you never know the future. So better is go ahead with your plan, buy the house and invest the money whatever you afford to lose, You will be safe in that case.

[Lorence.xD]

Well is hard to determine. If i were that guy i will take the loan and build business first rather buy new home and invest some of it to safe haven investment like Gold but trying invest in bitcoin is okay but not in this current price market 

The current price of bitcoin is a suicide run for those who want to join in the fray because of the volatility and any time soon, the 50k worth of bitcoin might only be worth 20k. I do agree with your strategy on what to do with the loan, but the problem with running a business is that you should put your eyes on it 24/7 and at first, there will be no profits coming in because you are still a start up which threatens your daily expenses. I suggest to start a small online business that does not interfere with your day job, so you can still support your project while staying alive.

[pooya87]

It is a terrible idea because people should never invest (in anything) the money they can not afford to lose. This is not bitcoin related at all, the risk is just too high that makes it unacceptable. Buying a home with a loan from the bank makes sense because there aren't any other options most of the times and people want to live in that home not to mention that the market is so much less volatile. Otherwise if it is an investment (instead of wanting to live there) it still becomes very risky and should be avoided. When it comes to bitcoin the risks is higher (same as the reward being higher) and that means it should not be done.

Besides when you take a loan you have to pay the bank back and if it is invested in something you have to pay them from your own pocket or sell that thing to pay them, both cases mean loss. And what if that thing didn't go up in price and simply stayed the same or worse continued to dump?

[thesmallgod]

Sorry in the last few paragraph of your narrative, you sighted about how lucrative the real estate business is but you already talked about the person wanting to buy the house and paying house rent. Is the person interested in buying house and sell it later as a real estate investment? If the house is being bought for personal use, taking loan to buy house means you already have a payment plan on how to pay back the money because you cant take a loan to buy an asset without having plan on how to payback. It is different from when you take loan to do a business although each has its own risk.
To answer your question, crypto investment involve both a big risk and also adequate knowledge about trading is needed. Taking the 50k to invest or trade bitcoin is not a bad idea if he knows well how to trade. 50k is huge and from experience in trading, the higher your capital, the more your interest

[habilamesure]

Sorry in the last few paragraph of your narrative, you sighted about how lucrative the real estate business is but you already talked about the person wanting to buy the house and paying house rent. Is the person interested in buying house and sell it later as a real estate investment?

No not at all, I made such reference looking at the fact that in real estate a house worth $450k today, might increase to $800k in the next 5years.

So whatever the case may be, he will always to spend more to be able to buy this in next 5years

If his $50k investment in btc give him $100k within the next 5years, this means for him to be able to buy that house again, he will have to spend more than what he initially budgeted.

And what if btc price went below $50k within this 5year plan, this will be a death end for him

[michellee]

I do not want to take a loan because if I can not repay the interest monthly, the third party or the bank can take all of what I have. I prefer to invest using $50k and still paying rent for the next 5 years because I am sure that in the next 5 years, the bitcoin price will increase higher than my initial money.

That is not a hard decision because if we do not really need a new house and we can accept to live in a rent house, we can save our money in the investment type for 5 years. And if you decide to invest in bitcoin, I think that will be the best decision. But that will be up to you, and I hope you can think twice before you decide.

[CryptopreneurBrainboss]

Bitcoin can be worth so much in the next 5 years, bitcoin can also have small value in the next 5 years. I'd say that he should stick on what he has planned. If I where to choose on where I will use a loaned money for I will go for real estate because of the risk involve in bitcoin. If he wants to invest in bitcoin he should have done that earlier back in 2018.

Seconded, investing in bitcoin is very risky especially when the funds aren't yours and borrowed which is why we are only advice to used funds we'll be comfortable losing. Let assume the market get a major corrections and dumb below $5-10k taking another 2-3 years or probably more years just to recover and get back to its previous highs, this scenario is very possible. The 2017 market crash came as a surprise to many as most newcomers didn't see it coming. They all taught the market will continue increasing but that wasn't the case.

The bitcoin market isn't matured yet compared to that of real estate. Therefore just as others before me have suggested, I'll say you stick to your earlier plans. Sure investing in Bitcoin would give more return assuming everything goes as planned but you can't be certain that'll be the case. Just minimize your risk and go with the real estate investment.

[habilamesure]

You see in this life no doubt most people take some crucial decision based on their current emotions, at this very point in time, the bitcoin market is tempting especially to those new to Crypto investment.

Guys... I appreciate all your opinions, now its very clear that investing what you can afford to lose in bitcoin at this current market bobbling is like calling for your death sentence.

I hope those that had been also having a hard time in making decisions on whether to invest that money planned for sometime else on bitcoin because of it current market peak can lean something from these contributions made by everyone here.

Investing that money in btc at this current stage is not an option please be guided.

In ever you choose to go, it's a two side coin, it either you gain or you lose

[Coin_trader]

Sorry in the last few paragraph of your narrative, you sighted about how lucrative the real estate business is but you already talked about the person wanting to buy the house and paying house rent. Is the person interested in buying house and sell it later as a real estate investment?

No not at all, I made such reference looking at the fact that in real estate a house worth $450k today, might increase to $800k in the next 5years.

So whatever the case may be, he will always to spend more to be able to buy this in next 5years

If his $50k investment in btc give him $100k within the next 5years, this means for him to be able to buy that house again, he will have to spend more than what he initially budgeted.

And what if btc price went below $50k within this 5year plan, this will be a death end for him

Yep. BTC and House are both investment, The OP should set his priority. If he badly needed the house in the next 5 years, It's better to invest on House since the value of both BTC and House are inflating overtime. If he didn't need the house then he can prioritize to invest in BTC since the chance of having more is great than investing it on House. Although the profit is not guarantee in BTC, the risk is worthy once the price grow exponentially.

It's a matter of prioritizing on this kind of decision making.

[adzino]

If he wants to buy a house, let him buy a house. If he gets to buy a house after making a $50,000 down payment, tell him to do it. There is no need to invest those money in crypto currencies. You never know what is going to happen to the price in the future since the crypto market is very volatile. Your $50k might end up being $25k. On other hand, if you wait for years before investing it in a house chances are you won't be able to afford the house anymore since the prices usually go up my 15%-20% after like 5 years. So, if he wants a house, tell him to get the house instead of trying his luck investing in crypto.

[LogitechMouse]

Not a tough decision for me at all.

If I want to buy a house then I will buy a house. I will disregard the money that I will be using for an investment. If the person on Twitter borrowed money for a new house then he must follow what he planned and take the other investments later after it. You didn't tell too if the person has another work because if he has then he can use his salary to invest into Bitcoin.

He must stick to his plans and don't think for another option for the money he loaned for. One thing more is that the second option is quite risky since we don't know what can happen to Bitcoin in the next 5 years. Yes base on its past movements it always goes upward but what if it goes the other way around?? Take note that anything can happen with Bitcoin. Anything can happen without anybody expecting it to happen.

Yep. BTC and House are both investment,

I just want to say that a house will just be an investment or asset if it will be used as a apartment where you can get money from it otherwise it will remain as a liability and not an investment.

[joniboini]

If he wants to invest in bitcoin he should have done that earlier back in 2018.

The thing is nobody knows the future. Can you even guarantee that after 2019 we'll see a bullrun? In the next five years, you might say the same thing, 'should've bought it in 2020', or 'should've bought it in 2023'. This is why some people said the best time to invest in something is in the past, and the second-best time is now (with proper risk management).

[blckhawk]

Quite tough indeed but I think the people who only in that situation could answer that because he knows better what could be the best for him. Like if you prioritize having a house then go for it however, if you think you can wait you could for more years then just rent out and try to invest that amount in crypto. Though it is a lot of risks to take because of the fact that Bitcoin is inflating over time thus no one really knows whether will it go up or down. Bitcoin could bring 2fold, 3fold, and even more of your invested money yet it can also cut into half or even more, so to put it simply it is more like a double-edged sword, thus they always say invest only the money you can afford to lose. That is why I conclude that the decision should be made by himself.

[Lhaine]

Too risky, if he want to invest in Bitcoin or in real estate he should use his own money not to have  a loan for not guaranteed return. Use that 50k as your own initial investment .it's enough to start no need to look for a loan ,just because you think you can earn more.  what if the situation will not be in favor for what you are expecting to happen then you may lost your money at the time you still have loan need to pay.

[meanwords]

That is some risky play he is doing right now. I think it would be better if he just ask for a financial advisor to help him regarding that instead.

I mean, if he doesn't mind the ups and down of Bitcoin, then he should be okay investing in Bitcoin as long as emotion doesn't control him. Show him the 4 year cycle Bitcoin chart and he might find something interesting.

Another thing here is that, does he need the house immediately? why would he need a house? is it for investment? because in my opinion, it's better to invest that $50,000 than to loan just get a house if he doesn't need the house except for investment.

[Pizzalover420]

NEVER TAKE A LOAN.

You are welcome, oh and buy gold, it will be used for spaceship electronics in the future.

[bittreo]

Here is a healthy thread to get bitcointalkers' opinions on the same: https://bitcointalk.org/index.php?topic=5300900