Why buying a home is usually a terrible investment (vs buying bitcoin).

[Dr.Bitcoin_Strange]

Well, like the first comment already highlighted, investing in landed properties like house might not be profitable in other country but in some other countries it is.

I don't think there is any place in the world where real estate is not profitable, at least the value is going to keep going up, the only thing is the speed at which it rises. Some areas, especially in the city would rise faster and real estate will be more expensive there, but even in rural areas, the value isn't going to depreciate.

You are right, that's why I don't agree with the OP's idea, saying that "buying a house is a terrible investment when compared to Bitcoin." What he doesn't understand is that the volatility of real estate and Bitcoin investment is very much different. The fact that real estate might take lot of time for its value to keep appreciating doesn't make it a terrible investment. The area where I grow up from, if my Dad had bought a plot of land for me twenty years ago as an investment for his son, I would have become a millionaire today because then, a plot of land was very cheap that even the price of all the gift I received as a baby, would have been able to purchase a plot then. Investment is all about patient and having a good knowledge about the asset.

[SatoPrincess]

I consider crypto to be very fragile investment, one moment you could be millionaire and next moment your wallet gets wiped out cause your seed phrase was somehow compromised, so I consider diversifying into real estate deffo a wise choice.

Isn’t it the same thing if you’re careless with your banking information? Banks are not going to refund your money if your account is hacked due to your negligence. The bank will say you gave permission, case closed. I thought you were going to say the volatility of bitcoin makes it a risky investment. Real estate is not a bad investment either, I would love to own a hotel or a service apartment. And I would not mind selling my bitcoins to be able to afford it.

[uneng]

But  most people don't take into account the interest rate where the average homeowner is paying approx. 6% annual interest on a typical 30-year fixed mortgage.
So the interest alone is wiping out the gains on your annual 6% appreciation. On top of that you are paying 1% property tax year every year, maintenance and repair costs, etc.

Before buying a house, save the money and pay for it at once without creating long term debt along the next decades. As I see, the terrible idea isn't to buy a house, but to buy a house on credit. And the same goes for any other thing you are going to acquire. Do your best to always pay at sight, while asking for a discount. Only buy on credit if there aren't any interest rates going to be charged from you.

Buying a house is a great investment which is much more stable and safe than holding Bitcoin, although both categories of investment are totally different. Each of them have their respective pros, and just like any other investments, the more volatile an investment is, more promising the potential profit can be, while more stable investments tend to be less profitable.

[Jewan420]

I consider crypto to be very fragile investment, one moment you could be millionaire and next moment your wallet gets wiped out cause your seed phrase was somehow compromised, so I consider diversifying into real estate deffo a wise choice.

I don't quite understand what you mean by crypto. But if you're trying to explain Bitcoin, you've run into a misconception. If you're talking about shitcoins, you'd be mostly right. Because Bitcoin and Shitcoin are both volatile in nature but their recoveries are very different. Bitcoin is different from all other coins in terms of recovery. Because, while Bitcoin price recovery is guaranteed, you cannot guarantee Shitcoin price recovery. Even when Bitcoin started to recover, it was able to increase in value by almost 2 times.

If you can be careful with your wallet, and hold your purchased bitcoins for a long time, I think investing in bitcoins can be better than real estate. On the other hand, if you are considering investing in other cryptos (shitcoins), diversifying into real estate defo may be wise. Remember, the possibility of losing is everywhere, but you need to take steps to protect your money. I think Bitcoin is the most advanced in this respect.

[Son Of Blockchain (SOB)]

If I remember correctly, you were the one who created the thread saying that selling gold in the US is difficult, right?  

I don't know what's going on in the US, but according to my understanding, billionaires, millionaires or rich people are the ones who own the most real estate and gold. In addition, in the remaining countries, owning a house or real estate is something that everyone from young to old dreams of.
In my country, owning a house will help us save a lot of costs as well as help us feel most secure because we can ensure our family has a place to live without having to worry even when we don't have money. In my country, renters have never had a better life than people who own homes, let alone people who own many homes. From what's going on around me and what I see, people are fine without bitcoin but if they have to rent a house it means they don't have the stable life they expected.

The dream of every responsible person is to own a home and provides shelter to they family, because that is the primary responsibility of anyone, so who ever at whatever age you can own a house, it something that is worth celebrating and for sure there is a big relief in owning a home which money can not buy most especially when you own the home for your family.

Real estate also as a business is a big investment that billionaires rush into and aside from the profits merging, there is a guarantee of security for the assets and the believe that the value of the property will keep increasing yearly, this is what makes that big difference, Bitcoin on the other hand is a contemporary investment and only for smart people, only a few of investors will believe Bitcoin to be a better investment compared to real estate, because Bitcoin lack physical representations and the risk that comes along with holding Bitcoin compared to the risk of owning an estate, aside from the tax which make the difference.

I think the creator of this thread should stop giving people reasons not to own a house, everyone's dream is to grow into an adult and be financially capable of owning their own homes, moreover the benefits he stated is enough reason for people to own a house or houses.
 Real Estate is a very lucrative investment infact one of the best in modern times, It's nice to trust Bitcoin and believe it's potential but that does mean he should be giving people the impression that there are no good investments asides Bitcoin, I respect his opinion concerning both but his statement is wrong cause every good investor should be open to diversification.

[mirakal]

I consider crypto to be very fragile investment, one moment you could be millionaire and next moment your wallet gets wiped out cause your seed phrase was somehow compromised, so I consider diversifying into real estate deffo a wise choice.

Isn’t it the same thing if you’re careless with your banking information? Banks are not going to refund your money if your account is hacked due to your negligence. The bank will say you gave permission, case closed. I thought you were going to say the volatility of bitcoin makes it a risky investment. Real estate is not a bad investment either, I would love to own a hotel or a service apartment. And I would not mind selling my bitcoins to be able to afford it.

If you aren’t responsible with such a risky investment like bitcoin, you will definitely lose your funds in the end. Same with fiat savings in a bank, if you carelessly disclosed it to some strangers, you will wake up one day with zero balance in your account. In all investments that contain risks, one should be aware about risk management to avoid future losses and regrets.

However, I believe real estate is a very profitable investment that makes it a safe haven. But when it comes to bitcoin investment, its potential profits may surpass the real estate once hold for longer years. Furthermore, if you’ve gained life changing profits from bitcoin and use a part of it to acquire real estate property, that would be an even wiser investment. Multiple investments create multiple profits, than to rely on a single one.

[Odusko]

I consider crypto to be very fragile investment, one moment you could be millionaire and next moment your wallet gets wiped out cause your seed phrase was somehow compromised, so I consider diversifying into real estate deffo a wise choice.

Isn’t it the same thing if you’re careless with your banking information? Banks are not going to refund your money if your account is hacked due to your negligence. The bank will say you gave permission, case closed. I thought you were going to say the volatility of bitcoin makes it a risky investment.

I believe liberty made such statements based on his information and knowledge about cryptocurrency investment because at some point in time he did mention that cryptocurrency is a frigile investment which to me is somewhat out of proportion because, even though cryptocurrency doesn't have physical representation that doesn't have anything to do with it security of investment, and for any sensitive individuals, protecting your cryptocurrency investment is same as you protect all other internet related security, just like your email, banking informations, and the rest of all the other sensitive informations, you use online.

[Casdinyard]

Most people buy into the myth that buying a home is the best investment you can ever make...but more often than not that idea is just a myth.

Take the US as an example. The average house in N. America appreciates 5 to 6 per cent per year, which sounds great at first glance. In 10 years the value of your house will almost double.

But  most people don't take into account the interest rate where the average homeowner is paying approx. 6% annual interest on a typical 30-year fixed mortgage.
So the interest alone is wiping out the gains on your annual 6% appreciation. On top of that you are paying 1% property tax year every year, maintenance and repair costs, etc.

Making matters  worse is that for the first ten years or so most or all of your payments are applied to the interest, so you wont have any actual ownership or equity of the home,
or very little...for the first ten years. And consider that much of the appreciation of your house is simply due to inflation. So if inflation is 5% per year then that alone is undermining your actual appreciation.

I'm not saying that owning a house is a bad thing, there are certainly benefits to home ownership. It provides you with a place to live, you can borrow against it,
you can pass it down to your kids, etc. If you just want to have a place to live and call your own then owning a house may be a great idea for you, but don't think of it as some kind of
incredible financial investment because it is not as great as you may think.

Believe me or not, but the only country where owning a house is a massive liability's the US. Everywhere else, it's still seen as the pinnacle of ownership. Philippines even provide multiple programs for regular 9-5ers to be able to own their own home, most of the time with no need to file mortgages or whatever you guys in the US do to have the money to buy a house. And even when we do acquire the house itself, with how populous places are becoming in my country it's so easy to have them be occupied, long as it's not in a high-risk zone and it's not prone to floods.

Owning a house is not a bad thing, especially if it's to build your own business, or to house your own family. You just happened to be in a country where banks take advantage of every little thing they can make money out of.

[dezoel]

Owning a house might not be a good idea in the US, but it is lucrative in other countries. I know that there are countries where the price of houses appreciated more than 5%-6%. In my country, houses' value can appreciate 100% in five years depending on the location. If you live in an area experiencing a population explosion and increased tourism, you might understand my view.

There was an anti-tourism protest in Malaga, Spain because the the price of rent increased by 16.5% in a single year. House owners in such locations will be making good profits. There are also some countries where the government doesn't charge as high as 1% yearly property tax. In some countries, property tax doesn't even exist. Bitcoin is a good investment, however, diversifying your investment to the property business is not also a bad idea.

I completely agree with this. Buying a home for living in it is a different thing, and buying a property as an investment is a different thing and we need to know what we are talking about here. A person willing to buy a property because he has enough money to do that is never a good idea. No doubt, Bitcoin is a great investment because it tends to provide ROI way quicker than traditional investment options, but that doesn't mean real estate businesses aren't profitable.

As said by Fiatless, in our country as well, you don't pay that much money in taxes each year, and if your property is in a good location, the price will appreciate pretty quickly unless you have bought your place in a location where there isn't much population hence not enough demand for properties.

That being said, real estate investments might not be for everyone, but those who can afford to do it, it can be a great way to diversify your investments and build future assets.

[dunfida]

Owning a house might not be a good idea in the US, but it is lucrative in other countries. I know that there are countries where the price of houses appreciated more than 5%-6%. In my country, houses' value can appreciate 100% in five years depending on the location. If you live in an area experiencing a population explosion and increased tourism, you might understand my view.

There was an anti-tourism protest in Malaga, Spain because the the price of rent increased by 16.5% in a single year. House owners in such locations will be making good profits. There are also some countries where the government doesn't charge as high as 1% yearly property tax. In some countries, property tax doesn't even exist. Bitcoin is a good investment, however, diversifying your investment to the property business is not also a bad idea.

I completely agree with this. Buying a home for living in it is a different thing, and buying a property as an investment is a different thing and we need to know what we are talking about here. A person willing to buy a property because he has enough money to do that is never a good idea. No doubt, Bitcoin is a great investment because it tends to provide ROI way quicker than traditional investment options, but that doesn't mean real estate businesses aren't profitable.

As said by Fiatless, in our country as well, you don't pay that much money in taxes each year, and if your property is in a good location, the price will appreciate pretty quickly unless you have bought your place in a location where there isn't much population hence not enough demand for properties.

That being said, real estate investments might not be for everyone, but those who can afford to do it, it can be a great way to diversify your investments and build future assets.

From the word itself in between a liability and an asset then both things would really be that entirely be different and this is why when it comes to decision making about having some investment then of course it would really be that something more worth rather than on buying up something on which you do know that it cant be that used or something that would be beneficial. Somehow there would really be those individuals who would really be that wishing to have their own houses for their own family and something that they can call it home. This is why not all buying housing decisions would really be considered bad, it would really be just that according to so someones goal and plans that they are really that trying out to make it happen. This is why there would really be conditions on which needs up to have that exemption at least.
On the time that you do have the money and you are in torn in between investing with Bitcoin or having a new house then you should really be needing up to assess such condition on which making
up decisions such as this wont really be simple nor easy and this is why proper planning and thinking is really necessary. It would really be that according into your needs or you would be still prioritizing
on having investment and save out those wishes later on?

[Finestream]

But  most people don't take into account the interest rate where the average homeowner is paying approx. 6% annual interest on a typical 30-year fixed mortgage.
So the interest alone is wiping out the gains on your annual 6% appreciation. On top of that you are paying 1% property tax year every year, maintenance and repair costs, etc.

Before buying a house, save the money and pay for it at once without creating long term debt along the next decades. As I see, the terrible idea isn't to buy a house, but to buy a house on credit. And the same goes for any other thing you are going to acquire. Do your best to always pay at sight, while asking for a discount. Only buy on credit if there aren't any interest rates going to be charged from you.

Buying a house is a great investment which is much more stable and safe than holding Bitcoin, although both categories of investment are totally different. Each of them have their respective pros, and just like any other investments, the more volatile an investment is, more promising the potential profit can be, while more stable investments tend to be less profitable.

Buying a house can only be a great investment if you are making consistent profits out from it. But if you just buy your house so you can have your own shelter for your family, I don't see it as an investment either. It's actually a necessity for survival.

However, if you plan to sell it in the future and make some good renovations, it could be an investment but it's nothing compared to bitcoin investment wherein you can buy low and turn 5x or 10x your profits in the future.

[Wakate]

I consider crypto to be very fragile investment, one moment you could be millionaire and next moment your wallet gets wiped out cause your seed phrase was somehow compromised, so I consider diversifying into real estate deffo a wise choice.

Isn’t it the same thing if you’re careless with your banking information? Banks are not going to refund your money if your account is hacked due to your negligence. The bank will say you gave permission, case closed. I thought you were going to say the volatility of bitcoin makes it a risky investment.

I believe liberty made such statements based on his information and knowledge about cryptocurrency investment because at some point in time he did mention that cryptocurrency is a frigile investment which to me is somewhat out of proportion because, even though cryptocurrency doesn't have physical representation that doesn't have anything to do with it security of investment, and for any sensitive individuals, protecting your cryptocurrency investment is same as you protect all other internet related security, just like your email, banking informations, and the rest of all the other sensitive informations, you use online.

Investing in crypto can be a good business for us if we know when to buy and when to sell to keep making our profits. Comparing cryptocurrency investment to buying a house for rentage is a thing of understanding and how to go about it for us to make our money. Real estate is a good and lucrative business we can invest money and make huge profits over a period of time same thing with investing in crypto.

 It is good we don't have to put our fruits into a single basket because it can be very risky for us. The last bear market took more than 2 years for the market to recover so if we have invested funds in other businesses, that could be a good opportunity to make money while waiting for the bear market in cryptocurrency to go bullish so we can earn too. Diversification of investment should be our priority!

[headingnorth]

Per CNBC (a top financial news outlet in the US), 82% of recent home buyers  in the US say they regret their purchase.
44% say they have to keep getting into deeper and deeper debt to maintain their standard of living.

Why Homeowners Are Struggling To Afford Monthly Expenses (Aug 5, 2024)
www.youtube.com/watch?v=7dCfvhvX3K0


Keep in mind, home ownership in America used to be much easier and much more affordable 30 or 40 years ago.
But today it is out of reach and/or too burdensome for most people. The housing market is probably even worse in many Asian countries.

Just because you own a valuable house doesn't mean you are financially well off. The wealth represented by your home is only on paper and realized only when you sell it. The rise in home ownership costs has far outpaced wages creating an affordability crisis. There is a saying "house rich, cash poor." The expenses of home ownership  are endless. Property tax, homeowner insurance, flood and fire insurance, maintenance costs (both expected and unexpected), mortgage principal and interest, etc.

When the value of your house goes up, so do your property taxes and other costs since property taxes are based on the assessed value of your home. On top of that, local government can decide to raise your property taxes at anytime for any reason, giving you another nasty surprise.
If you can't or won't pay it? They seize your house and kick you to the curb. Property taxes rarely if ever go down, only up.

What scares me about home ownership is being exposed to the tyranny of local government, who look at you as just another target for legalized extortion.

And what happens if you suddenly get laid off or lose your job with no means of paying your mortgage, property taxes, etc? Well I guess you can kiss your house goodbye.

[taufik123]

-snip-
The expenses of home ownership  are endless. Property tax, homeowner insurance, flood and fire insurance, maintenance costs (both expected and unexpected),
mortgage principal and interest, etc.

And the total of all the cost of owning the house will continue to swell if it is not paid, the homeowner's finances are very emergency if it is like that and if he does not have a worthy job then he will lose the house, is that so?

Luckily I live in Indonesia, I have a house that I bought from my job in crypto, and it wasn't too expensive, only about $30k at the time.
The taxes I pay each year are only $2 and there are no extras. I live in a village and there are no other taxes or any insurance.

The homeownership system in America and Indonesia is certainly very different.
And I can buy a house at a low price and without any additional costs, and I can buy Bitcoin for a long-term investment, Both can be mutually beneficial.

[nullama]

~snip~
Just because you own a valuable house doesn't mean you are financially well off. The wealth represented by your home is only on paper and realized only when you sell it.

When you own your own home, without a mortgage, your living costs are reduced dramatically.

This is because housing is the largest expense for the vast majority of people.

Once you remove that cost, you will be able to invest more money, which will generate more money to you, and so on.

Therefore, the idea of owning a home is great, financially speaking.

Now, if you got a massive mortgage, and you are struggling to pay it every month, and will continue to do so for the next 30 years, then you are simply renting from the bank, with added expenses. You might even lose your home in those 30 years if you can't keep up.

Owning a home is not the problem, having a massive debt is.

[glendall]

when we can own a house, it is a matter of pride in my country, let alone having a luxurious house unlike any other,
There is nothing wrong with investing in Bitcoin or housing because everyone has their own views, but maybe some people prioritize owning a house first rather than owning Bitcoin

[summonerrk]

Most people buy into the myth that buying a home is the best investment you can ever make...but more often than not that idea is just a myth.

Take the US as an example. The average house in N. America appreciates 5 to 6 per cent per year, which sounds great at first glance. In 10 years the value of your house will almost double.

But  most people don't take into account the interest rate where the average homeowner is paying approx. 6% annual interest on a typical 30-year fixed mortgage.
So the interest alone is wiping out the gains on your annual 6% appreciation. On top of that you are paying 1% property tax year every year, maintenance and repair costs, etc.

Making matters  worse is that for the first ten years or so most or all of your payments are applied to the interest, so you wont have any actual ownership or equity of the home,
or very little...for the first ten years. And consider that much of the appreciation of your house is simply due to inflation. So if inflation is 5% per year then that alone is undermining your actual appreciation.

I'm not saying that owning a house is a bad thing, there are certainly benefits to home ownership. It provides you with a place to live, you can borrow against it,
you can pass it down to your kids, etc. If you just want to have a place to live and call your own then owning a house may be a great idea for you, but don't think of it as some kind of
incredible financial investment because it is not as great as you may think.

In the country where I live, the numbers are about the same, which means that the conclusions about investing in a house and not buying cryptocurrencies can be made similar to what you did.
I agree that a house has not been a good investment for a long time, because now we live in a time when it is better to have a deposit in cryptocurrency. And there are many financial instruments, such as staking, so that this deposit adds even more money. In my opinion, this is much better than investing in real estate.

[Blitzboy]

Owning a house might not be a good idea in the US, but it is lucrative in other countries. I know that there are countries where the price of houses appreciated more than 5%-6%. In my country, houses' value can appreciate 100% in five years depending on the location. If you live in an area experiencing a population explosion and increased tourism, you might understand my view.

There was an anti-tourism protest in Malaga, Spain because the the price of rent increased by 16.5% in a single year. House owners in such locations will be making good profits. There are also some countries where the government doesn't charge as high as 1% yearly property tax. In some countries, property tax doesn't even exist. Bitcoin is a good investment, however, diversifying your investment to the property business is not also a bad idea.

I completely agree with this. Buying a home for living in it is a different thing, and buying a property as an investment is a different thing and we need to know what we are talking about here. A person willing to buy a property because he has enough money to do that is never a good idea. No doubt, Bitcoin is a great investment because it tends to provide ROI way quicker than traditional investment options, but that doesn't mean real estate businesses aren't profitable.

As said by Fiatless, in our country as well, you don't pay that much money in taxes each year, and if your property is in a good location, the price will appreciate pretty quickly unless you have bought your place in a location where there isn't much population hence not enough demand for properties.

That being said, real estate investments might not be for everyone, but those who can afford to do it, it can be a great way to diversify your investments and build future assets.

From the word itself in between a liability and an asset then both things would really be that entirely be different and this is why when it comes to decision making about having some investment then of course it would really be that something more worth rather than on buying up something on which you do know that it cant be that used or something that would be beneficial. Somehow there would really be those individuals who would really be that wishing to have their own houses for their own family and something that they can call it home. This is why not all buying housing decisions would really be considered bad, it would really be just that according to so someones goal and plans that they are really that trying out to make it happen. This is why there would really be conditions on which needs up to have that exemption at least.
On the time that you do have the money and you are in torn in between investing with Bitcoin or having a new house then you should really be needing up to assess such condition on which making
up decisions such as this wont really be simple nor easy and this is why proper planning and thinking is really necessary. It would really be that according into your needs or you would be still prioritizing
on having investment and save out those wishes later on?

Difference between asset and liability? Simple. One makes you money, the other costs. Some say a house is always valuable. It can be an asset, but high maintenance costs, property taxes, and market risk make it a money hole. Bitcoin, however, is authentic. This asset is revolutionary. The growth potential makes real estate look like a piggy bank. The future of money is being discussed.

Bitcoin's volatility is the risk you want - it has huge upside. It need vision to see beyond short-term volatility and see the big picture.

If you're torn between buying another rental property or investing in Bitcoin, ask yourself: are you playing the old game or ready for the future? Bitcoin goes beyond investing; it's a message. It means you accept the future without fear.

[Kamustapo]

more than that, owning a house will make you have to pay the tax for the land and also the building itself. I don't live in America, but that's the case here at my country. if we rent it out, we have to pay for the maintenance also.

I think if we use property as our main source of investment, it isn't worthy, especially if we own the home personally. it also will take a quite long time for the ROI.

[Zlantann]

In the country where I live, the numbers are about the same, which means that the conclusions about investing in a house and not buying cryptocurrencies can be made similar to what you did.
I agree that a house has not been a good investment for a long time, because now we live in a time when it is better to have a deposit in cryptocurrency. And there are many financial instruments, such as staking, so that this deposit adds even more money. In my opinion, this is much better than investing in real estate.

Considering only the profit from an investment is not the ideal way to evaluate it. Investing in cryptocurrencies might be more profitable than real estate but you should also consider the level of risk they have. It is easier to lose money from investing in crypto than real estate. There is also a high level of scam and security risks in crypto investment. Another advantage crypto investment has over real estate is that it doesn't need maintenance or high taxes like the latter. However, investment is based on personal choice and location. Some people are not just comfortable with the real estate business because it can also be stressful and complicated.