Post
Topic
Board Bitcoin Discussion
Re: Why buying a home is usually a terrible investment (vs buying bitcoin).
by
SickDayIn
on 07/09/2024, 12:01:18 UTC
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.