Re: Bitcoin or Property? What might be the best investment?
We had a very interesting discussion over the weekend and people debated if it was better to invest in property or to invest in Bitcoin. The argument was as follows :
1. Most people cannot afford to buy property, so they take a home loan at a Bank. The home loan is paid back with interest and some of these loans are spread out over 20 years to make it affordable to the person who takes out the loan. So, over that 20 years the house of $100 000 will cost you say $1 000 000. {$900 000 paid in interest}
The argument is also that the property has to increase in value, with more than $900 000 for you to say that it was a good investment AND you have to sell that property to get that profit.
2. The other side of the room said it was better to rent a smaller property and to invest the "savings" into something like Bitcoin, because your profit will pay for a bigger deposit or even a whole property in a few years time.
I think paying a high interest rate to a Bank is just as bad as paying rent to a Landlord, because you are getting screwed in both these circumstances.
We all want to live in big houses that we cannot afford.
1. Most people cannot afford to buy property, so they take a home loan at a Bank. The home loan is paid back with interest and some of these loans are spread out over 20 years to make it affordable to the person who takes out the loan. So, over that 20 years the house of $100 000 will cost you say $1 000 000. {$900 000 paid in interest}
The argument is also that the property has to increase in value, with more than $900 000 for you to say that it was a good investment AND you have to sell that property to get that profit.
2. The other side of the room said it was better to rent a smaller property and to invest the "savings" into something like Bitcoin, because your profit will pay for a bigger deposit or even a whole property in a few years time.
I think paying a high interest rate to a Bank is just as bad as paying rent to a Landlord, because you are getting screwed in both these circumstances.
We all want to live in big houses that we cannot afford.
Can you do both, provided that you already have your own house to live and we're talking about investment money and not savings/retirement funds? I totally agree that housing loan sucks with high interest and your house can be taken from you if you're not able to continously pay for mortgage but I don't think it's a good idea to invest all your money in bitcoin knowing the high risk involve. So why not part of your invest in a house you can buy and sell and part of it invest in bitcoin, I think that's a win-win situation.