Bitcoins dominance over Real Estate in terms of profitability

[kotajikikox]

Real estate is a strong asset here profit is guaranteed but not instant or quickly. it require long time.

I also believe that real estate is quite a good investment to make. It seems that it is one of the few investments that increase in value over time. If you buy a good house now, see again in 10 years and surely it will be even more expensive than when you bought it.

It does require you to be patient if you want to maximize profit though so if you are looking for roi right immediately then real estate might not be the best for you.

[God bless u]

Many people still consider real estate a good investment (especially the older generation of investors). Let's try to calculate and check if this is true.

My friend has a property (apartment) in one of the most expensive cities in the world* (Moscow) with an area of ​​~65 sq.m (three-room). The market value of this property is approximately ~$170,000. Such an apartment can be rented out for approximately $500-700 per month. This will bring a profit of $6000-8500 per year. It will take 28-20 years for the purchase of a similar residential property to generate a return equal to the cost of this apartment (doubling the money invested).

These are not entirely accurate, but only approximate calculations aimed at showing an approximate “picture”. This does not take into account inflation, changes in the value of real estate (the “body” of the deposit) and the cost of rent (“interest” on the deposit).

Of course, profitability may differ when choosing residential or commercial real estate. Commercial rent will be more profitable, but with such rent many problems arise, such as finding a long-term tenant, because with every downtime in finding a new (short-term) tenant, money is lost. The next “headache” is the repair costs (which will certainly arise) and again drain money from you. And add to everything property taxes and other deductions, for example, tax (13-30% depending on tax residence status) on the sale transaction if the property was owned for less than 3-5 years (as in the country in which my friend’s apartment is located). One should take into account the likelihood of a fall in the value of real estate and rent due to the deterioration of the situation in the area or city as a whole due to environmental problems (pollution) or man-made (military operations), natural phenomena (fires, floods, volcanoes).

Bitcoin in 2 years (to date) has more than doubled in price (and this is not the limit) from $29k to $67k. Not to mention the 10-year interval, where the profitability of bitcoin turns out to be simply crazy compared to real estate.

Whereas with bitcoin (compared to real estate), you just buy it and hodl it safely. It seems impossible to come up with more passive investments. Do you feel an advantage in choosing real estate investment over bitcoin? I will not ask the question of what you would prefer to invest in here, because it is already clear what the majority will choose.

With this post, I wanted to strengthen the conviction of BTC-investors that their choice was correct, because instead of buying a conditional one apartment, in 10 years you will be able to afford to buy several (probably more than 1) apartments (depending on the country and location). Like Didi Taihuttu, who sold his house and bought bitcoin.

^* - Static cost of 1 sq.m. residential real estate for 2023 by city of the world (according to various sources from the Internet).

 1 - Monaco (73,6k - 54,7k euro)
 2 - Hong Kong (27,7k - 18,6k euro)
 3 - Switzerland (Zurich)  (22,3k - 13,7k euro)
 4 - South Korea (Seoul) (19,5k - 10,6k euro)
 5 - Singapore (18,5k - 10,7k  euro)
 6 - Great Britain, London) (15,4k - 8,9k euro)
 7 - Israel, Tel Aviv-Yafo)  (14,8k - 9,9k euro)
 8 - USA (New York) (14,2 k - 9,3 k euro)
 9 - France (Paris) (12,4 k - 8,7k euro)
10 - Cyprus (Limassol) (3,3k - 2,3k euro) - A friend’s apartment is located at approximately this price level (~2,4k euro, Moscow).

Yes BTc can offer you some more benefits in terms of profit that Real estate but I think you have missed the most important aspect of real estate that's risk free invwsem.

I don't see anything in this world except real estate which can give you profits without any loss. Btc requires a long term strategic approach and even then you can have losses but thats not the case in real estate.

[avikz]

Well, Bitcoin investment is obviously more profitable than any other asset classes available in the investment market, worldwide. If you are looking at a net profit, then there's no competitor for Bitcoin. However, a real estate property will give you a recurring income if you rent it out. Surely, a commercial property will generate more rent than a residential one. There's no rocket science.

The big catch here is the tax benefits. In many countries, bitcoin income is taxed at 30% or even higher without the choice of offsetting your losses. At the same time, if you take out bank loan to buy a property, you will get income tax benefits on the amount you are paying as bank interest. Different countries have different laws, but if I am talking from the perspective of country, I will get a huge tax benefit if I take out a bank loan. Also the tax benefit will continue as long as the loan continues.

Bitcoin is the greatest investment product, no doubt! But real estate still hasn't lost its charm, either!

[Apocollapse]

Yes, but it does not give a yield (1.). Although so far in total return bitcoin outperforms good real estate in the sum of appreciation and yield.

Technically you're correct and I also agree with you.

However, some people choose to stake their coins in centralized exchanges in order to earn yield.

Are you sure that we won't experience any stress when investing in bitcoin? This would actually be a bias to say that investing in bitcoin is more comfortable and secure than real estate. We should be fair and need to accept the fact that there is no asset that is both safe and can bring high profits and vice versa, low profits, low risks.

I believe most people know that real estate is the best investment and everyone's dream but because we are bitcoin investors and we don't have too much money to own real estate, we are trying to fool ourselves that bitcoin is better.
To be honest, I don't feel comfortable investing large amounts of money in bitcoin but I feel very safe owning real estate and generating passive income from it. 

It is true that investing in bitcoin will bring much better returns than any investment, not only real estate but everything has its price and the higher the return, the higher the risk.

Yes I'm 100% sure I don't have any stress when investing in Bitcoin and I don't fool myself.

I live in a country where laws and regulations are useless for middle and poor class, even I have ownership documents of my real estate, but there could be a mafia that want to get my real estate by using fake ownership documents. The mafia can cooperate with the government, if I can't hire a popular and expensive lawyer, I would lose in the court. Imagine, you already working hard to buy real estate, but your money will gone in a second either lose or use to hire a lawyer.

[legendbtc]

Are you sure that we won't experience any stress when investing in bitcoin? This would actually be a bias to say that investing in bitcoin is more comfortable and secure than real estate. We should be fair and need to accept the fact that there is no asset that is both safe and can bring high profits and vice versa, low profits, low risks.

I believe most people know that real estate is the best investment and everyone's dream but because we are bitcoin investors and we don't have too much money to own real estate, we are trying to fool ourselves that bitcoin is better.
To be honest, I don't feel comfortable investing large amounts of money in bitcoin but I feel very safe owning real estate and generating passive income from it. 

It is true that investing in bitcoin will bring much better returns than any investment, not only real estate but everything has its price and the higher the return, the higher the risk.

Yes I'm 100% sure I don't have any stress when investing in Bitcoin and I don't fool myself.

I live in a country where laws and regulations are useless for middle and poor class, even I have ownership documents of my real estate, but there could be a mafia that want to get my real estate by using fake ownership documents. The mafia can cooperate with the government, if I can't hire a popular and expensive lawyer, I would lose in the court. Imagine, you already working hard to buy real estate, but your money will gone in a second either lose or use to hire a lawyer.

It's true?  I have never been in your situation nor heard anything similar to your story and I don't think it could happen like that.

I don't know where you're from, but what's happening to you doesn't mean it's happening to everyone. And I believe you also know how safe real estate is from the news and reviews from people around the world but only because you have been in situations that we have not experienced and you have aversion to real estate.

Nowadays when it comes to safe havens, people immediately think of real estate and gold, no one says it's bitcoin, and when it comes to assets that can bring the best returns, perhaps people will talking about bitcoin.

[thecodebear]

Last year my sister in law told me I should use some of my bitcoin to buy a house because it'll be a better investment. I straight up laughed at her. She was surprised when I said a house is a much much worse investment than bitcoin.

The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.

[btc78]

Last year my sister in law told me I should use some of my bitcoin to buy a house because it'll be a better investment. I straight up laughed at her. She was surprised when I said a house is a much much worse investment than bitcoin.

The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.

I too would want to buy a house using bitcoin but if you sell your bitcoin now that would be a bad idea. Bull run is coming and we will see bitcoin reach heights that has never been reached before. I guess if I get enough profit from bitcoin, I’ll buy a house too someday.

[blckhawk]

Last year my sister in law told me I should use some of my bitcoin to buy a house because it'll be a better investment. I straight up laughed at her. She was surprised when I said a house is a much much worse investment than bitcoin.

The normal person thinks a house is the ultimate investment. They don't realize how much bitcoin grows by.

You should probably bring back up this conversation with your sister and see where she stands with his claim, with the possibility and rumors of a repeat of 2008 housing crisis, it's probably in the best of your time that you will do whatever you can to hodl on to that bitcoin and wait for that crisis to happen, in my opinion, you'd probably be able to buy more properties when you continue hodling that bitcoin and then selling it when another price pump happens. If your sister will still have the same stance since your last talk, then I guess some people are just too stubborn to deal with things and that they don't like the idea that what they believe in is wrong or that they were suddenly proven wrong.

[Maus0728]

Depending on where you live, your answer would be a bit different, if your country is in midrange, it's a bit of a balance but if you live in a country that's got like really low property value for real estate then definitely, it's going to be bitcoin that you'll say is the more dominant, if you live in a country that's really expensive, I think that you'd probably stick more on investing in real estate because it's already a time bomb that it's so expensive right now and that you might see more profit there because of how there's a possibility that the profit from bitcoin and real estate is close and the difference is negligible.

[God bless u]

Well, Bitcoin investment is obviously more profitable than any other asset classes available in the investment market, worldwide. If you are looking at a net profit, then there's no competitor for Bitcoin. However, a real estate property will give you a recurring income if you rent it out. Surely, a commercial property will generate more rent than a residential one. There's no rocket science.

The big catch here is the tax benefits. In many countries, bitcoin income is taxed at 30% or even higher without the choice of offsetting your losses. At the same time, if you take out bank loan to buy a property, you will get income tax benefits on the amount you are paying as bank interest. Different countries have different laws, but if I am talking from the perspective of country, I will get a huge tax benefit if I take out a bank loan. Also the tax benefit will continue as long as the loan continues.

Bitcoin is the greatest investment product, no doubt! But real estate still hasn't lost its charm, either!

I think if we can do some efforts and research on how can we ask our governments to reduce the taxes on BTC and trading. In this way the traders and investors will get the confidence to do trading and get the industry to grow and flourish In the market.

In this way we can attract people to our industry because it's not easy to attract the people that are interested in real estates from a very long time. No doubt real estate is profitable and to make people on our side we need to give more profits and reduce volatility.

[Yamifoud]

Real estate investment still dominates the market because of its profit stability and very slim chances (to nothing) of losing. As we can see, the majority of rich people are involved in the real estate business which means that it is more profitable than any form of investment, and over Bitcoin.

Of course, we can say Bitcoin is also profitable but when it talks about risk, this is more risky than any form of investment. This affects the investment interest of the people but seeing the momentum of the market and despite some corrections, it is positively growing.

[dezoel]

The idea of real estate that some investors have is not to buy a land, build a property and then start renting, but to buy a land and resell. That method of real estate can really guarantee double your money or profit that is really huge. The investors who consider buying and building on a land to rent are those concerned about long term benefit from the stable income they have been able to setup which will come monthly or annually as agreed by the tenants occupying the property. Bitcoin investment is good, and real estate is not only for the old.

Real estate is a strong asset here profit is guaranteed but not instant or quickly. it require long time. investment on bitcoin is also much profitable like real estate but there are high risk of lossing money. Although long-term holdings of Bitcoin can yield a good profit, there is also the potential for huge losses.  Although we have not seen long-term losses in Bitcoin investment, Bitcoin constantly makes new ATHs, but it is still very risky.  So I am in favor of investing in bitcoins but not in favor of investing huge amounts yet

They say that each investment has a risk. In real estate, I think it is if you are living in a non-crowded area because the demand for real estate there might also be low. BTC is much profitable than in real estate and it's possible to still make it less risky by studying how it works or how the market works. Actually, a lot of us have witnessed the long-term loss of BTC or its value.

The dip that happened on 2022 is an example of it. The only good thing is that BTC can always bounce back and always ensures that a new ATH will be recorded again. If we are beginners in BTC, indeed we must start small first. Once we gain a decent experience, we can only invest huge if it's our own money and then we still have a back up funds left. Also we are able to accept it once the outcome is negative.

[m2017]

Real estate investment still dominates the market because of its profit stability and very slim chances (to nothing) of losing.

Before the mortgage crisis of 2008, this was exactly what was believed, but this year has slightly changed ideas about the reliability of investing in real estate.

Also, the dominance of investments in real estate occurs due to the conservatism of this type of investment, in other words, they are accustomed to thinking this way (especially the older generation) due to the exclusion of alternatives (bitcoin) from the investment portfolio.

As we can see, the majority of rich people are involved in the real estate business which means that it is more profitable than any form of investment, and over Bitcoin.

Really?

Don’t you think that the fact is that investing in real estate is one of the oldest types of investments and your assessment turns out to be very subjective (not accurate) due to the fact that these rich people simply didn't have alternatives (before the advent of bitcoin)? The rich are only now (the last 5-7 years) starting to take a closer look at bitcoin (with a strong rise in price).

Show me real estate that increases in price by 3-4 times in a few years.

Of course, we can say Bitcoin is also profitable but when it talks about risk, this is more risky than any form of investment. This affects the investment interest of the people but seeing the momentum of the market and despite some corrections, it is positively growing.

Instead of choosing between bitcoin and real estate, buy land!

After all, this is also a limited resource, because it is no longer produced (it is even decreasing), unlike real estate.

There is a phrase (attributed to Mark Twain) that goes like this: invest in land - it is no longer produced. If M.Twain had known about the existence of bitcoin, he would have used “bitcoin” instead of “earth”.

[Reatim]

Yes BTc can offer you some more benefits in terms of profit that Real estate but I think you have missed the most important aspect of real estate that's risk free invwsem.

I disagree about real estate being a risk-free investment.

The location of your property could very well be a risk on its own. Whatever happens around your property is a risk. Geological and environmental factors are risks that could affect how your property will sell. Lastly, political and economic issues could very much affect how the market will be.

I don't see anything in this world except real estate which can give you profits without any loss. Btc requires a long term strategic approach and even then you can have losses but thats not the case in real estate.

I still think real estate is a great investment but there are also possibilities of losses in it. The costs used for maintenance and repairing could be much expensive than the amount you would be selling it for. Or in case of no one wanting fill your rentals, then you would be just losing money paying operational costs.

[Hopila]

It's true that real estate investment can be a popular choice among investors due to the potential for long-term returns and rental income. However, as you mentioned,there are many factor to consider when  evaluating the profitability and risk associated  with real estate investment

real estate investment can be a profitable venture, but it's important to conduct thorough research, evaluate the risks, and make informed decisions based on your financial goals and risk tolerance. Consulting with a financial advisor or real estate expert can provide valuable insights and guidance for successful real estate investing.

[Silberman]

Yes BTc can offer you some more benefits in terms of profit that Real estate but I think you have missed the most important aspect of real estate that's risk free invwsem.

I disagree about real estate being a risk-free investment.

The location of your property could very well be a risk on its own. Whatever happens around your property is a risk. Geological and environmental factors are risks that could affect how your property will sell. Lastly, political and economic issues could very much affect how the market will be.

Real estate is often thought to be risk-free because it is by far the mot common investment that people all over the world actually do, since we all need a place to live, and since in the minds of people everyone is investing in real estate they think of it as a risk-free choice, which is not correct, as real estate is an investment with a low risk and predictable growth, but it still entails risk, and someone that does not understand this may repeat the same mistakes many other people made during the 2008 crisis.

[teamsherry]

That's some good analysis, but even so I'll rather also have some of my asset or portfolio in properties, real estate also increases over time and the thign about bitcoin is its seasonal, it does not have a very stable growth, it can rise and fall and even now no-one knows how long this bull would last, some persons prefer to have real estate than bitcoin because its possible to make good profit projections as you invest but with bitcoin you just have to chill and there is no way of knowing when the profits would come, bitcoin surely has more chance of generating more profits for people, but some persons would rather stick with real estate.

[SatoPrincess]

Good analysis. I do not see the relationship between Real Estate and Bitcoin investment in the sense of which is better than the other. I think both investments are a must-have for young people who want to build wealth. If you want cashflow, real estate is a good investment for you to have. You can generate cashflow from Airbnbs, having multiple streams of income gives you a better chance of accumulating more bitcoins and hodling for long term since you are not likely to be under pressure to sell your bitcoins to cover your expenses.

[AmoreJaz]

Good analysis. I do not see the relationship between Real Estate and Bitcoin investment in the sense of which is better than the other. I think both investments are a must-have for young people who want to build wealth. If you want cashflow, real estate is a good investment for you to have. You can generate cashflow from Airbnbs, having multiple streams of income gives you a better chance of accumulating more bitcoins and hodling for long term since you are not likely to be under pressure to sell your bitcoins to cover your expenses.

If you have the means, it is always best to invest in assets that have potential to grow. You need to gauge the pros and cons depending on your financial capability. Bitcoin may be very attractive investment owed to its high volatility, but one should consider his financial capability as your profitability depends on when will you sell your assets. Real-estate on the other hand, is known to increase its value thru time. Thus, the longer you wait, you have the chance to have your profits.

[OgNasty]

I don’t think you can single real estate out vs Bitcoin like this in an honest debate. Bitcoin’s growth has made everything look terrible in relation. I think while it is important to have exposure to Bitcoin to benefit from the birth of a new asset class, you should also be diversified and own things like real estate and stocks.