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

[Mpamaegbu]

Owing a house is just a status thing and doesn't make great financial sense. For those who will be scandalized that I see it from this perspective, they should evaluate the cost of buying a house and then check what it would take to pay rent on that property and see how many years of rent that can get them to that amount. It normally runs into years that even the homeowner may not be alive to see. Now, consider putting that same amount of money into business and see how you will easily pay that same rent from the huge profits made. I'm not even talking about Bitcoin investment, but any well thoughtout business.

[Rampagoe004]

Owning a house is one of the real investments that is right for the maximum future. Maybe in foreign countries, a house is not an investment that many investors are looking for as a future asset because of the increase of the equivalent of 5%-6% over a long period of time. Having your own house can make things easier, you don't have to think about paying rent for a house every year, the costs of which are quite large if you consider that in the long term, it's hard enough to buy a house, buying a house is not a bad investment, it's an asset for the future and investing in Bitcoin also has a good future. .

[SmartGold01]

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.

Sincerely the country where I came from doesn't have this much taxation on houses and house owner, the only experience we gain over here is just buy and pack in your home after some necessary registration and legal documentations. In fact to make it very important, those who makes much more money are house owners especially when situated in developed area or in a city that is highly populated then rentage could be so expensive where the prices double over 1-3 years and even as that rents increases price and people are still paying.

What really happened is, tenant are the people who are loosing against house owner. As tenant there are some fees to be paid which includes maintenance fee unlike the cushion fee, legal/agreement fee, agent fee, and cola fee (Drinking money). All these things are what a tenant gonna pay before renting an apartment and tell me why owning a house is a bad ideas or would not benefits them, and of course whatever that made them relocate to another building or house they would still have to restart everything afresh that is why mostly in my country everyone is trying to own their own property or home to live since is too expensive to afford a rental apartment.

Investment in bitcoin is cool and this is for those who are into the digital world that knows the importance and usefulness of bitcoin, anyone who doesn't know how bitcoin works would never leave property renting to Bitcoin investment because they aren't educated on the importance of bitcoin per say. So, investment in bitcoin and housing and also cool investment and of course we don't need focused our efforts in place, maybe hold bitcoin and investment in some real estate with this we don't stressed our bitcoin holdings.

[nullama]

Owing a house is just a status thing and doesn't make great financial sense. For those who will be scandalized that I see it from this perspective, they should evaluate the cost of buying a house and then check what it would take to pay rent on that property and see how many years of rent that can get them to that amount. It normally runs into years that even the homeowner may not be alive to see. Now, consider putting that same amount of money into business and see how you will easily pay that same rent from the huge profits made. I'm not even talking about Bitcoin investment, but any well thoughtout business.

Owning your own home adds stability and minimizes risk for your older times.

I wouldn't like to be renting a home when I'm say, 70. Imagine if they ask you to leave because they will move into their home.

There are other things to consider when investing in a home. Other investments are different though.

[Rabata]

Generally what we prioritize when buying a home is that investing in a home is a permanent asset where an investor does not have to face losses due to volatility. Rather, a small amount of annual growth can be expected from there. But it must be remembered that in buying a house an investor has to take the decision and have to spend large part of life income. In terms of investment, the output is not comparatively high. But when we look at investing in Bitcoin, relatively small investments can lead to huge returns. Especially if one tries to hold bitcoins for long term, one can get many times higher return on investment which will be much more profitable than buying a house.

[SickDayIn]

Owing a house is just a status thing and doesn't make great financial sense. For those who will be scandalized that I see it from this perspective, they should evaluate the cost of buying a house and then check what it would take to pay rent on that property and see how many years of rent that can get them to that amount. It normally runs into years that even the homeowner may not be alive to see. Now, consider putting that same amount of money into business and see how you will easily pay that same rent from the huge profits made. I'm not even talking about Bitcoin investment, but any well thoughtout business.

Sure this might sound like a good idea in theory, but practically it's not. it's simply not enough to compare the cost of renting vs the cost of interest payments on the loan of a house (as these are both a net loss). There are so many intangible benefits, such as long term security of home ownership. Many countries do not have laws that protect renters, the owners can move back at any point and kick them out, and they have to get a new rental with higher prices. Post COVID some countries saw rent cost increase 50% in 2 years. There's no security or stability in that.

Also the idea of investing in "any well though out business" over buying a home is literally crazy. 90% of businesses don't succeed, and most people go broke losing everything. A home is a much more safe investment than starting a business.

[Iranus]

Owing a house is just a status thing and doesn't make great financial sense. For those who will be scandalized that I see it from this perspective, they should evaluate the cost of buying a house and then check what it would take to pay rent on that property and see how many years of rent that can get them to that amount. It normally runs into years that even the homeowner may not be alive to see. Now, consider putting that same amount of money into business and see how you will easily pay that same rent from the huge profits made. I'm not even talking about Bitcoin investment, but any well thoughtout business.

You've thought about running a business and using that profit to rent out your home, so why not think about owning real estate and renting it out to people? Isn't that business? The advantage of real estate is that you can earn passive income every month and the value of your property increases over time. Do you know any business model that brings in 2 sources of profit like real estate?

Real estate is also a form of business and is considered the safest form of business today. If you follow some economic reports, you will know that real estate is the most popular form of business for billionaires and I think there must be some reason why they do so.

Besides, owning a property or a house is not only for business purposes but also for the stability of your family. Do you want your children to have to rent and move constantly throughout their lives and disrupt their lives? Do not deny the importance of owning a house whether for business purposes or to serve our lives.

[Dailyscript]

Owing a house is just a status thing and doesn't make great financial sense. For those who will be scandalized that I see it from this perspective, they should evaluate the cost of buying a house and then check what it would take to pay rent on that property and see how many years of rent that can get them to that amount. It normally runs into years that even the homeowner may not be alive to see. Now, consider putting that same amount of money into business and see how you will easily pay that same rent from the huge profits made. I'm not even talking about Bitcoin investment, but any well thoughtout business.

There is nothing wrong with owning a house. What should be kept into consideration is that we should be too quick to own a house when we have not made a lot of investment or started any good business that give us enough money not just to maintain a steady life but to be financially stable. It makes a lot of sense that when a person is financially unstable he then can diversify his investment, own properties including hoses and landed properties. Without that what should be in the mind of any still hustling should be expanding business and investment instead of owning a house.

[ancafe]

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.

If the concept of buying a house by installing it is not completely profitable because it will worsen financial conditions. But now we are given a good choice where to buy a house without an excessive grade or bill. The government makes home subsidies for the community and this is in the area where I live, the program is quite helpful for the community even though they have to work extra to cover monthly fees. Building a house by using their own money is difficult to do by the community now because they have to prepare enough money and buy land to build the house until it is finished.

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.

The wrong way to buy a house by taking credit will create new problems if you do not have a stable income. Having a house is a must because we will live there with our family, so whether we like it or not we have to try to fulfill the purchase. Renting a house every year must spend a lot of money where we will never be able to collect money to buy it. The house becomes something important for people because without a house we will not get a decent place to live.

The house if rented out is also very profitable and that is also a part of investment. In my area the house is not enough because there are many people who rent to be left behind. The prospect of housing is also quite good in the area where I live because it has a selling value that is increasingly rising.

[avp2306]

Owing a house is just a status thing and doesn't make great financial sense. For those who will be scandalized that I see it from this perspective, they should evaluate the cost of buying a house and then check what it would take to pay rent on that property and see how many years of rent that can get them to that amount. It normally runs into years that even the homeowner may not be alive to see. Now, consider putting that same amount of money into business and see how you will easily pay that same rent from the huge profits made. I'm not even talking about Bitcoin investment, but any well thoughtout business.

There is nothing wrong with owning a house. What should be kept into consideration is that we should be too quick to own a house when we have not made a lot of investment or started any good business that give us enough money not just to maintain a steady life but to be financially stable. It makes a lot of sense that when a person is financially unstable he then can diversify his investment, own properties including hoses and landed properties. Without that what should be in the mind of any still hustling should be expanding business and investment instead of owning a house.

There really nothing wrong regarding owning a home, its like you are securing yourself for any potential risk and make sure that you are already settled before taking risky decisions. I will be more confident to take more riskier step towards taking investment since I know there's nothing to get afraid with that status. Owning a real estate property is already an achievement so people should not think its bad decision to own this if they have capability to acquire since not every time we have available fund to spend since for sure crisis will happen and to bad for us if we got broke and we don't have a home bought.

Although I understand people who choose to invest first since maybe they are skilled and have lots of knowledge on investment field and by using their money could potentially produce more profits to them. But if they are beginner maybe best if they choose the safer side.

[mamesso]

You should take examples from several different countries to strengthen your assumptions. Buying a house in the US may not be a good idea, but in many other countries it can yield great profits. The annual growth of the house price index will experience a rapid increase depending on the location, if calculated with annual inflation, the growth of house prices is still much more profitable. Home investment will be more profitable if combined with government policies that strengthen investment in the property sector. If you buy a house in a city that is supported by infrastructure development, the price will increase significantly, especially if you want to look for opportunities for long-term investment asset growth.

Buying Bitcoin and then holding it for the long term is a very good idea, the increasing growth of Bitcoin allows you to make big profits. But when it comes to investing for profit, Bitcoin is the best choice right now based on its growth over the past decade. But if we talk about long-term benefits and uses, a house can give you all the convenience and comfort, especially if you buy it in a big city.

[Blitzboy]

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Sincerely the country where I came from doesn't have this much taxation on houses and house owner, the only experience we gain over here is just buy and pack in your home after some necessary registration and legal documentations. In fact to make it very important, those who makes much more money are house owners especially when situated in developed area or in a city that is highly populated then rentage could be so expensive where the prices double over 1-3 years and even as that rents increases price and people are still paying.

What really happened is, tenant are the people who are loosing against house owner. As tenant there are some fees to be paid which includes maintenance fee unlike the cushion fee, legal/agreement fee, agent fee, and cola fee (Drinking money). All these things are what a tenant gonna pay before renting an apartment and tell me why owning a house is a bad ideas or would not benefits them, and of course whatever that made them relocate to another building or house they would still have to restart everything afresh that is why mostly in my country everyone is trying to own their own property or home to live since is too expensive to afford a rental apartment.

Investment in bitcoin is cool and this is for those who are into the digital world that knows the importance and usefulness of bitcoin, anyone who doesn't know how bitcoin works would never leave property renting to Bitcoin investment because they aren't educated on the importance of bitcoin per say. So, investment in bitcoin and housing and also cool investment and of course we don't need focused our efforts in place, maybe hold bitcoin and investment in some real estate with this we don't stressed our bitcoin holdings.

Big buildings, big money, big players. Real estate still smells, though, believe me. You pay through the nose for rent, fees, all kinds of stupidity, and what do you get? Zero. Zip. Zilch. You are only enriching the landlord. Sad!

We next have Bitcoin. Its the future, folks. Distributed, safe, and with great room for expansion. Though its not for everyone, if you're clever you will find the opportunity. The internet was considered garbage in the past. Most people lack understanding of it. Still mired in the past, they just consider stocks and bonds and real estate. They are passing up the largest wealth transfer in historical memory.

So, whats the play? Diversify. Put not all of your eggs in one basket. Sure, own some real estate; however, also own some Bitcoin. Guard your bets, shield yourself from inflation, and set yourself for enormous profits. Its about being wise and creating a balanced portfolio, not about choose one or the other.

[adaseb]

Generally the way its been, at least in Canada for the past decade or so it. Most real estate investors are actually losing money every month.

Most buy condos, not homes to rent out. But you need to pay insurance, condo fees, and property taxes EVERY MONTH. Whether its occupied or not. These fees have risen signifcantly. Most landlords are losing money every month.

Why do they do it? Well because the property value increased by double in the last decade and every year (except last) kept increasing at double digits. So its worth it losing $500 a month when you gain $300,000 over the course of a decade.

[Ale88]

Owing a house is just a status thing and doesn't make great financial sense. For those who will be scandalized that I see it from this perspective, they should evaluate the cost of buying a house and then check what it would take to pay rent on that property and see how many years of rent that can get them to that amount. It normally runs into years that even the homeowner may not be alive to see. Now, consider putting that same amount of money into business and see how you will easily pay that same rent from the huge profits made. I'm not even talking about Bitcoin investment, but any well thoughtout business.

Owning your own home adds stability and minimizes risk for your older times.

I wouldn't like to be renting a home when I'm say, 70. Imagine if they ask you to leave because they will move into their home.

There are other things to consider when investing in a home. Other investments are different though.

I totally agree with you. Of course everyone manages his life the way he prefers but being in the 60s or 70s renting an apartment and pretty much at any moment you can being kicked out for several different reasons, I don't know, it doesn't sound like a peaceful retiring at that point. And let's not forget that maybe you stay in that place for 20-30 years paying a good price, once you get kicked out you need to think about the market current prices which will probably be 3-4 times more expensive so whatever budgeting you've been doing it's all gone.

[nullama]

~snip~
I totally agree with you. Of course everyone manages his life the way he prefers but being in the 60s or 70s renting an apartment and pretty much at any moment you can being kicked out for several different reasons, I don't know, it doesn't sound like a peaceful retiring at that point. And let's not forget that maybe you stay in that place for 20-30 years paying a good price, once you get kicked out you need to think about the market current prices which will probably be 3-4 times more expensive so whatever budgeting you've been doing it's all gone.

The thing is that in many big cities around the world it is getting harder and harder to actually buy a home given the huge increase in their prices.

And it's just getting worse every year. The amount that a person can save for a deposit is nothing compared to how much a home price increases in the same time.

So, given that the speed of home prices is higher than the speed of savings increasing, then if a person cannot buy a home today they will never be able to.

The only other solution is to move somewhere else that is cheaper.

[ThemePen]

There is nothing wrong with owning a house. What should be kept into consideration is that we should be too quick to own a house when we have not made a lot of investment or started any good business that give us enough money not just to maintain a steady life but to be financially stable. It makes a lot of sense that when a person is financially unstable he then can diversify his investment, own properties including hoses and landed properties. Without that what should be in the mind of any still hustling should be expanding business and investment instead of owning a house.

I completely agree with you. Buying house is big achievement but it is not most important thing. First we need to have stable financial situation. This means having good income investments and successful business. Only then should we think about buying house. If we are still working on becoming financially stable focus on growing our wealth and investments. Buying house can be good idea but only when we are financially ready. If we rush into it without being prepared we might experience stress and financial problems. It is essential to prioritize our financial growth and security before making such big decision.

[Ale88]

~snip~
I totally agree with you. Of course everyone manages his life the way he prefers but being in the 60s or 70s renting an apartment and pretty much at any moment you can being kicked out for several different reasons, I don't know, it doesn't sound like a peaceful retiring at that point. And let's not forget that maybe you stay in that place for 20-30 years paying a good price, once you get kicked out you need to think about the market current prices which will probably be 3-4 times more expensive so whatever budgeting you've been doing it's all gone.

The thing is that in many big cities around the world it is getting harder and harder to actually buy a home given the huge increase in their prices.

And it's just getting worse every year. The amount that a person can save for a deposit is nothing compared to how much a home price increases in the same time.

So, given that the speed of home prices is higher than the speed of savings increasing, then if a person cannot buy a home today they will never be able to.

The only other solution is to move somewhere else that is cheaper.

Wait, I never said that buying a home is an easy or cheap process, unfortunately, as you correctly pointed out, less and less people are able to afford the purchase of a house, but that is not the point of what we were talking about We were talking about buying a house as an investment and too many people only look at the economical side of purchasing a house but not at the benefits that could bring you, for example the fact that you won't be homeless. Is there a price we can put on that? It's also a mental situation because owning a house brings a certain type of safety, the fact that you won't sleep on the street is priceless for me. And then, to get back to you, being own to actually purchase a house is a totally different matter.

[oktana]

I think it depends on how and where exactly you invest in it. If you do some research you will realize that there's barely any billionaire who in their possession of assets doesn't have houses, some don't make money from it at the time but it doesn't change the fact that it is something you could sell later for a better price. There's so many ways to make money in real estate. From the buying and selling of lands, to that of houses, and even building it all from scratch and  selling it with your gain.

And I see that you say "VS buying Bitcoin". Don't forget that while Bitcoin has been doing well over the years, it doesn't mean that it is the best investment. In fact, there's nothing that is the best. All investments have their advantages and disadvantages.

[MarjorieZimmermanGinger]

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.

In terms of business, it would be better to buy a house to rent out to others and for each year we would have income that could be taken from the house. So in this capacity buying a house is a good idea because from what I know houses are becoming more valuable to sell or rent.

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.

Maybe in the US there is some truth to the fact that buying a house is not a good decision because there are other opportunities to make money, so people see houses as not an easy way to make money. But in some countries houses are actually the best investment because they can be used to make money and even in my country people are racing to build houses to rent out and the potential is quite large.

Furthermore, we have to look at the potential and maybe for some countries it is true that buying a house is not the best investment because there are opportunities in other places that are much more profitable. But if we talk about where I live, a house is one of the promising investments because it can make money.

[Z390]

If you know how much it cost today to rent a apartment compared to last year you won't sat that buying a home is a terrible investment.

In my country today many people are beating themselves hard for not building their houses when they have the cash, they were thinking that things will ease up and go back to normal but instead price of everything keeps surging, even a bag of cement today is 3x compare to two years back.

Having your own place kills the worries of renting an apartment, and the funny part is that the rent fee keeps increasing every year, this is so alarming in my country right now.
My dream this period is that Bitcoin goes up to at least 90k so that I can grab the opportunity to build my own dream house, if my family didn't have a family home right now things would have been even harder for me, I've secured some profits because I sold some lands in the past but I really want a dream home of mine.