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

[nullama]

~snip~
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.

Yeah, but if you are planning to rent forever, which would be the case if you don't ever buy a property to live in, then even if you have the money coming in every month from other investments, maybe you will be forced to move out when you are old.

That's because the owner of the property you are renting might want to live in there later on.

The point is that paying rent is fine as a temporary solution, but it doesn't give you a place to sleep forever necessarily, even if you have the money to pay for it.

[Nonstop_H]

Buying a home or owning a home brings more than what you said about paying taxes etc. We save funds that we spend on renting houses, and we save on food that we will buy from restaurants or hotels because in our home we will be buying in bulk, and cooking food at home for 5 people is much cheaper than in hotels or restaurants. There are many other things to consider besides just cooking and eating.

The point is houses are definitely not a good investment financially but inheriting to kids is a big investment.

There are houses in my place that gave 10 over the 10 years so yeah financially houses are not good investments. They won't be a good investment and there is a study that shows that renting a place is much cheaper than owning a house.

To me continental or othe few reasons been mention here above shouldn't be the reason why renting a home is more preferable than building a house, normally once a man income becomes stable , home comfort should be highly consider, we shouldn't see building a house as what is more beneficial for our children to inherit, in my country here building a house for rentage is a good and lucrative business because taxes and so on do not much apply. Though it is more beneficial to houses that are located in the urban areas.

[ultrloa]

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.

Buying home is like security for yourself that you will not experience to became a homeless. We could start over and over again if we fail for our investment but we have less shot to buy our home since the fact is the price of real estate asset is increasing.

Although maybe some may think it dead investment but for if you decide to live with it for sure every cents you spend from it is really worth it. Some people really think that its good to pay attention first on their investment, but they failed to realize that not everyone succeed. Lots of people fail and they provably became homeless if they spend all their money on a failed business. Also its terrible if we experience this when we are old since pure struggle in life is what we are experiencing regarding on that matter.

[AprilioMP]

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.

What you said is true that it depends on the country. Where I live, buying a house is one of the best investments to make. Despite the house prices that can increase more than 5%-6%, every year people can make money from the house as an asset that can then be rented out to people who need a place to live such as workers or students.

For me, buying a house that we can then use as an asset as mentioned is a good way of thinking about getting regular income, especially since many people travel.

[GigaBit]

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.

What you said is true that it depends on the country. Where I live, buying a house is one of the best investments to make. Despite the house prices that can increase more than 5%-6%, every year people can make money from the house as an asset that can then be rented out to people who need a place to live such as workers or students.

For me, buying a house that we can then use as an asset as mentioned is a good way of thinking about getting regular income, especially since many people travel.

Buying a home is definitely a good option for those who are risk averse or don't have the guts to take the risk. Because an investor will be able to get his full money back gradually when investing for a house. But if investing in a house, the investor will have to wait for a long time because no one will get a return with the purchase of the house. And even if you get a return, it will be of limited size. If one gets 6 percent return every year after buying a house then it is not difficult to estimate how long it will take to get 100% return. It completely depends on the investor whether he will take small amount of money against big investment by waiting long time or big amount with short time and small investment.

[AprilioMP]

What you said is true that it depends on the country. Where I live, buying a house is one of the best investments to make. Despite the house prices that can increase more than 5%-6%, every year people can make money from the house as an asset that can then be rented out to people who need a place to live such as workers or students.

For me, buying a house that we can then use as an asset as mentioned is a good way of thinking about getting regular income, especially since many people travel.

Buying a home is definitely a good option for those who are risk averse or don't have the guts to take the risk. Because an investor will be able to get his full money back gradually when investing for a house. But if investing in a house, the investor will have to wait for a long time because no one will get a return with the purchase of the house. And even if you get a return, it will be of limited size. If one gets 6 percent return every year after buying a house then it is not difficult to estimate how long it will take to get 100% return. It completely depends on the investor whether he will take small amount of money against big investment by waiting long time or big amount with short time and small investment.

In addition to the benefits that we can get from renting, as an asset, the house can later be used as an inheritance given to children. This (giving a house to children has become a culture, especially for girls).
Not always investing in a house is used as a way to get a steady income even though compared to other investments that have greater profits, but on the other positive side, we get extraordinary benefits.

[lixer]

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.

I partially agree with what you said. It's true that owning a house is just a status thing and only those who can easily afford it should go for it, however, I believe it depends on the region you are living in. There are countries and regions where owning a house would mean you should be a multi-millionaire because of the prices of housing and properties in that region. In some other regions, one can own a house even if they aren't ultra-rich but have a small business that is earning them good money.

When we talk about starting a business with the money that can be used to buy a house, the same thing applies again. In some countries or regions, you will barely be able to start a decent business with a small amount, and if you start a small-scale business, you might not be able to pay rent, bear all other expenses, and still be able to run the business smoothly due to the cost of living in that region.

[Smack That Ace]

What you said is true that it depends on the country. Where I live, buying a house is one of the best investments to make. Despite the house prices that can increase more than 5%-6%, every year people can make money from the house as an asset that can then be rented out to people who need a place to live such as workers or students.

For me, buying a house that we can then use as an asset as mentioned is a good way of thinking about getting regular income, especially since many people travel.

Buying a home is definitely a good option for those who are risk averse or don't have the guts to take the risk. Because an investor will be able to get his full money back gradually when investing for a house. But if investing in a house, the investor will have to wait for a long time because no one will get a return with the purchase of the house. And even if you get a return, it will be of limited size. If one gets 6 percent return every year after buying a house then it is not difficult to estimate how long it will take to get 100% return. It completely depends on the investor whether he will take small amount of money against big investment by waiting long time or big amount with short time and small investment.

In addition to the benefits that we can get from renting, as an asset, the house can later be used as an inheritance given to children. This (giving a house to children has become a culture, especially for girls).
Not always investing in a house is used as a way to get a steady income even though compared to other investments that have greater profits, but on the other positive side, we get extraordinary benefits.

The benefits of owning a home or real estate are enormous. Not only do they provide us with passive income and their value increases every year due to demand, but they can also provide us with an ideal place to live or as an inheritance...Honestly, I don't see any disadvantages to owning a house or real estate. Its only downside is that it requires a large amount of capital to own and not many people can afford it, and that may be why many people say they don't like real estate.

Bitcoin has real potential and is worth investing in but we have to admit that real estate is still a good investment if not the best.

[nullama]

~snip~
What you said is true that it depends on the country. Where I live, buying a house is one of the best investments to make. Despite the house prices that can increase more than 5%-6%, every year people can make money from the house as an asset that can then be rented out to people who need a place to live such as workers or students.

For me, buying a house that we can then use as an asset as mentioned is a good way of thinking about getting regular income, especially since many people travel.

Yeah, but that house price increase can only be obtained if you sell the house, and then when you turn around to buy somewhere else to live you realize that everything else also has increased in price and you are now stuck renting.

I find it interesting when I see people that live in their houses which are worth millions of dollars but they don't have any money to do anything.

Sure, on paper they are rich but in real life they are very poor.

And if they sell their home they don't have enough to buy another place to live.

Strange world we live in.

[Dzwaafu11]

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.

This depends on your location. Is there some place where if you buy a house, or maybe regardless of what you own, you will be taxed on it? If your location is like that, then I will say you should go bitcoin, and then maybe when you are balanced enough to pay all the taxes, you can think of buying a house. But if you don't have enough money to do that, then I think bitcoin will be better. You will cash out from your bitcoin investment after a long time, and by then you can buy a house. 
 
If not for the taxes and other things that you, as the owner of a house, will be paying because you own it, I would have said buying a house is also a big asset that one can have. 

[Alone055]

This depends on your location. Is there some place where if you buy a house, or maybe regardless of what you own, you will be taxed on it? If your location is like that, then I will say you should go bitcoin, and then maybe when you are balanced enough to pay all the taxes, you can think of buying a house. But if you don't have enough money to do that, then I think bitcoin will be better. You will cash out from your bitcoin investment after a long time, and by then you can buy a house. 
 
If not for the taxes and other things that you, as the owner of a house, will be paying because you own it, I would have said buying a house is also a big asset that one can have. 

Owning a house IS owning a big asset regardless of the taxes and everything one has to pay, besides, buying and holding Bitcoin so that one can buy a house in the future doesn't make things any easier because even if the price of Bitcoin goes up and the investment made gives good returns, the prices of housing and real estate wouldn't be stagnant during that time and a house that one can buy for maybe $200k today will be worth $400k or maybe more within 4 to 5 years because we know properties keep getting expensive over time due to the increasing population and high demand for housing.

So, in my opinion, if someone has enough money and can easily afford to buy a house, making sure that the money they will spend on it is directed for it which means they aren't holding up on anything else, I would say they should go for it. A person should have separate funds for each purpose. If you want to make investments, you should be saving money for that separately when you have a good source of income, and if you don't have a house of your own, you should be saving money separately for that. Don't mix things up.

People say it's better to rent than to buy a house due to the high prices of housing and property, I would say there is a very big difference in living on rent and living in your own house, and only those who had their own house but then had to sell it for some reason and are now living on rent can understand this.

[Kelward]

I don't think that buying a home as an investment should be considered as a myth in any form, it's a real asset that appreciates and you can hardly sale at a lose. If you cannot afford to pay the taxes on your property then you can sale and make profit because land/house always appreciates in value. Besides you can let it out and collect rent, pay your taxes and keep the rest. Whether you live in your house, rent or sale it, theirs high probability that you won't be at lose.

The advantage that Bitcoin has over owning a home as an investment is that you need more money to be able to own a home but you didn't need much to start Bitcoin investment. You can decide to sale your house at anytime and you will be in profit but selling your Bitcoin during bear run will be a lose for you. For average and low income earners Bitcoin investment is the best for them, they can DCA and increase their ROI on the long term. For people who are more financially capable, buying a home is one of the best investments that they can pass on to their children.

[Miles2006]

The only point I’m yet to understand is the house bought for rent or living clearly seen anyone can decide to rent at any point. I will view this from different perspective mainly because our location differs and it’s simple to accept the fact not everyone can pay high value for a building, in my country it’s worth spending money for a building because it’ll definitely increase in value as time goes and there’s no excuse commonly seen as people value physical property, for example; land and building are highly valued here in my area to an extend in times of inflation house owners increase rent and act more strict. This is my honest observation so far, secondly exposure matters mainly because flooding and other effect can affect a location so you see people running from such area aside this owning a house in my location is a also a perfect choice . No one should act up falsely because investing in bitcoin is okay as well as buying a house.

[famososMuertos]

op; let's say that depending on how you look at it, a university degree doesn't make sense, in the same way we could look at it from various investments, the issue here is that there are mandatory liabilities, and a house is one, it's that simple, you can even live without an investment like bitcoin, but a house, regardless of the liabilities that are dragged along, is an investment that we should seek to invest.

[Dailyscript]

This depends on your location. Is there some place where if you buy a house, or maybe regardless of what you own, you will be taxed on it? If your location is like that, then I will say you should go bitcoin, and then maybe when you are balanced enough to pay all the taxes, you can think of buying a house. But if you don't have enough money to do that, then I think bitcoin will be better. You will cash out from your bitcoin investment after a long time, and by then you can buy a house. 
 
If not for the taxes and other things that you, as the owner of a house, will be paying because you own it, I would have said buying a house is also a big asset that one can have. 

Owning a house IS owning a big asset regardless of the taxes and everything one has to pay, besides, buying and holding Bitcoin so that one can buy a house in the future doesn't make things any easier because even if the price of Bitcoin goes up and the investment made gives good returns, the prices of housing and real estate wouldn't be stagnant during that time and a house that one can buy for maybe $200k today will be worth $400k or maybe more within 4 to 5 years because we know properties keep getting expensive over time due to the increasing population and high demand for housing.

So, in my opinion, if someone has enough money and can easily afford to buy a house, making sure that the money they will spend on it is directed for it which means they aren't holding up on anything else, I would say they should go for it. A person should have separate funds for each purpose. If you want to make investments, you should be saving money for that separately when you have a good source of income, and if you don't have a house of your own, you should be saving money separately for that. Don't mix things up.

People say it's better to rent than to buy a house due to the high prices of housing and property, I would say there is a very big difference in living on rent and living in your own house, and only those who had their own house but then had to sell it for some reason and are now living on rent can understand this.

Owning a house is good and it is preferable in places where the expense on maintaining a rented apartment is more expensive that no one having a personal house. Also come to think it the price of Bitcoin is not guaranteed that it will be so high in the newest 4 years. But i assure you that the price of building a house or buying one will be a lot more expressive than what it is today. Bitcoin is volatile asset, it is good for investment and profit but we all know that there are bull season and there bear seasons. No one knows when these seasons will come that is why you cannot entrust all your wealth into Bitcoin when you have an emerging plan.

[AprilioMP]

In addition to the benefits that we can get from renting, as an asset, the house can later be used as an inheritance given to children. This (giving a house to children has become a culture, especially for girls).
Not always investing in a house is used as a way to get a steady income even though compared to other investments that have greater profits, but on the other positive side, we get extraordinary benefits.

The benefits of owning a home or real estate are enormous. Not only do they provide us with passive income and their value increases every year due to demand, but they can also provide us with an ideal place to live or as an inheritance...Honestly, I don't see any disadvantages to owning a house or real estate. Its only downside is that it requires a large amount of capital to own and not many people can afford it, and that may be why many people say they don't like real estate.

Capital is a point of problem that burdensome people to become real estate investors. I really understand how the challenges and obstacles that will be received by those who want to do it even though they know the benefits behind what they do.
I also see many benefits of this business rather than losses and even multifunctional benefits if my language is to describe the two sides of the kentugan (routine income and inheritance assets).

Bitcoin has real potential and is worth investing in but we have to admit that real estate is still a good investment if not the best.

Bitcoin future assets that we need to have. I prefer other assets like gold as a backup rather than Bitcoin. Bitcoin something that is real will be beneficial as a long -term asset as a hedge.

[Onyeeze]

Investment is of different type depending the Investment you know very well is the one that you will invest on and you make your profit but the thing is that some people does not like to ask questions before then go into investment because when they see people doing something and profit on it they would like to follow those people to do same kind of investment there are doing, why that does not know the fundamental way of such investment so what I'm trying to say is that in anything you are doing you should make inquiries to know it more do not follow other people to do what they are doing- buying of house is like a real estatement kind of investment and before you join a real statement investment you have to understand the method first so is good for you to invest on what you know like Bitcoin than to go into real estate investment that you don't know properly, for me it can make you to lose.

[Synchronice]

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.

Even usually, buying a home is not a terrible investment. Home is considered as a safe and guaranteed investment. Your house can't go anywhere, once you buy it, it's on your name, you can have multiple of them, rent them, sell them and so on.
Bitcoin on the other hand, is a different thing and you can't own it physically, it's a virtual currency. Too many people don't know how to safely buy, sell or store Bitcoin, so, for many people, Bitcoin investment is not a good idea because they'll eventually lose access to their wallet because they don't know how to safely keep it.
When you create a cold wallet, you have to keep in mind that you need an air-gapped device, you need to safely store your wallet's keys. It looks plain and simple but it's a huge responsibility. House is more common for everyone and it's also the psychology, people prefer to own things that they can touch and see in real life.

Profit-wise, I completely agree with you, Bitcoin is superior compared to house. It's a brand new currency that almost conquered the world and has a very bright future. If anything, it's price is going high and Bitcoin ETF approval confirms that there is an interest and Bitcoin won't go anywhere anytime soon.

[Ryu_Ar1]

In addition to the benefits that we can get from renting, as an asset, the house can later be used as an inheritance given to children. This (giving a house to children has become a culture, especially for girls).
Not always investing in a house is used as a way to get a steady income even though compared to other investments that have greater profits, but on the other positive side, we get extraordinary benefits.

The main focus when we buy a house of course is this as a primary need where the house is a place to shelter us and the little family we have and I think this must be realized that before becoming a business field (where this can be used as an investment or rented out) of course we must be aware of what the function of the house is for.

Indeed, in the end the house can be used as an investment material and profit material in terms of business but it is just a bonus if we only have standard wealth or in the middle class. It is different when we make this a business land from the beginning where we have determined that the capital we use for property is business, maybe it will be a different story.  In this case I think when someone says about the home business we must be aware that the focus we have is whether the house will be used as a place of residence for us or for business materials because this goal needs to be emphasized from the start especially this will also affect what the future will be like,

[GideonGono]

I think it would all depends on the location, and there are some who are buying it not as an investment but for security, they want to secure a place for their family, a place that their kids could grow up and make memories.