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Real estate isn’t a shitcoin yet.

I’m very sorry, but if you think this you probably don’t own any or you have no yield from the property you own. Yes, real estate will trend to cost and I do not advise staying in real estate for the rest of your life because you will lose close to all of the money you stuck into it. Also, don’t put any money into real estate to store your wealth, we have Bitcoin for that.

Bitcoin is the most fantastic discovery, yes. Bitcoin will survive where every other asset class will die, yes. But there is no yield in Bitcoin that is denominated in Bitcoin without scamming people, so stop fantasizing about that. All we have is number go up and the only way to enjoy that is to exchange your Bitcoin for the luxury it buys.

You don't buy real estate when it's expensive, those who do are working another job to pay that housing bill. Apart from being able to buy low so there is a net result in rent, this yield is not influenced by the housing market. So after acquiring and fixing it up; the value of the property may go up or down, but the rent never goes down. It makes no sense to sell the property to buy Bitcoin with it. Simply stack with the collected rent. So, real estate isn’t a shitcoin yet, timing matters. The question is, when will real estate become a shitcoin? I think it will gradually turn into a shitcoin over the next 10 years, what do you think?

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Discussion

BITCOINSAFARITZ 2y ago

Fact 🇹🇿⚡️✊🏿 bitcoin is the only solution and financial freedom money

Satoshi Nakamoto 2y ago

Try not paying the mortgage or the taxes on that property and see what it happens.

Lau 2y ago

I'm not proposing malpractice. I'm defending strategy.

Satoshi Nakamoto 2y ago

It isn’t malpractice, people get fired or simply can’t afford the adjusted rates.

All I’m trying to say is that you can’t own real estate because it isn’t yours even after you pay it. You are renting from the city at a fee until you pass it forward to somebody else or they decide to simply take from you.

Shitcoin.

Lau 2y ago

I understand you point and i agree. But your point has nothing to do with my piece. Nobody was ever forced to buy a house they couldn't afford the rate adjustments for. Those who did took unnecessary risk.

Aurelius 2y ago

The justification for adding interest to a loan is to offset the potential risk of a borrower not being able to repay.

The risk of a loan should fall on the lender, not the borrower. If a lender gives a loan to someone who cannot service that loan, that’s their own failure.

The risk profile has been turned on it’s head. Society blames the borrower for default. It considers that people who cannot repay debts to be sub-moral. And we allow lenders an alternative to accepting the risk inherent in the lending process. Public bailouts? Student loans that are impossible to shed?

Lenders have learned to take the interest from those who can pay, and to subsidize the interest for those who cannot using public funds and public laws

Humble Bitcoiner 2y ago

Agreed. The only thing is that majority of people don’t have a second property to rent out. They buy an expensive house, max out their mortgage and then say “my house is my investment”.

That’s just bullshit the fiat system taught everybody because the money is broken.

I have plenty of friends who have mortgages of almost their entire salary and then saying it’s their investment. Just a lie you tell yourself to feel good about it. I wonder what happens if real estate falls in price and all those people have mortgages of double the price at that moment.

Again this is only my opinion on you own house you living in. Not if you rent out some extra

Lau 2y ago

Buying a house is the most irrational and expensive payment most people make. But it can be done so that it is profitable. You just need to leave your emotions behind and be patient. Luckily we now have bitcoin and people don't need to make this decision, but those who still invest in real estate now are just fooling themselves.

Aurelius 2y ago

I used to buy buildings.

Now I just look at them with an admiring eye and think, “I’d rather have #bitcoin.”

This is demonetization of real estate, and this is the reason that Bitcoin will make houses more affordable for people that need them.

jamw 2y ago

Most people buy a house to fulfil a basic need - shelter. The UK market however has been mental and many have experienced a 400% uptick over last generation. This has made it a shitcoin because it then fuels greed and inflation while also removing availability for those who actually need shelter over any kind of profit. Big mess. Should be seen as a home - a basic right - and not an investment.

El Tio 2y ago

I think it might have something to do with where you live as well.

Here in Argentina a house where you can have your family it’s about 150.000 USD. And a rent of the very same house is about 150.000 pesos a month (389 USD).

If you spend 150.000 USD in a house you have to pay taxes every month, and pay one time a year another tax called “bienes personales”. You might even be elected to pay “renta presunta” that we don’t know even what it is.

So, you put 150.000 USD in a loan that only pays you the inflation (around 8%). That’s about 1000 USD per month. You rent the house and keep the other 600 USD to live. There is no logic reason to buy property in Argentina. And I’m not even counting the risks of the state robbing you that property in the name of the poor

Executive Order 6102 2y ago

Selling vs stacking with rent isn't always comparable.

Depends on how much equity you have in the property. If you have multiple coins in the property, you have to think you'll never generate that much Bitcoin by converting rent checks into it.

I'd like a whole coin today over buying $200 worth a month for the next 10 years while dealing with tenants, repairs, taxes, etc.

Bauzen 2y ago

With interest rates continuing to go up, affordable homes for people looking to raise families are making the mortgage process more difficult. However, high end, luxury real estate properties, even in New York City, most of those don’t require mortgages, and the dip in real estate prices was a absorbed by foreign buyers quickly

Kasso 2y ago

Real estate will be a consumer good as it was until around 100 years ago.

Lau 2y ago

I think so too. As it should be priced.

El Tio 2y ago

I had this debate with my dad yesterday (he is a Bitcoiner as me and thanks to me).

We think it’s about age.

If you need flow, you are “old” or can’t work, it’s better to have real state (we prefer land-field than a house-building). Why? Cause you can’t wait to BTC and cause you can’t have flow with BTC. And also you “don’t care” if you don’t have stock, you don’t have a long future ahead.

All the rest scenarios, you can live from your work or you are young enough, then you compare 30 years or more of investment, then yes, Real state is a shitcoin.

MainStreetChungus 2y ago

I think in the future we will see the separation of the “land” portion of real estate and the “building” portion of real estate.

The scam is that they make you believe that “real estate” is an investment but for the most part it’s like a car. As soon as you build a house the building starts depreciating, so there are maintenance costs that need to be accounted for.

Land on the other hand cannot be replicated and does not depreciate, land just is. But even that carries some risk with it (what if you buy a property and then in a year they put a dump next to it?).

So to make a proper real estate investment you will need to evaluate the land portion value and then the building depreciation aspect combined with any income that can be generated with that (rental property or individual use). That is a much more complicated calculation than yoloing on an expensive house to hold your wealth.

Balkrishna 2y ago

but timing is key. Don't buy when it's expensive or you'll be working another job to pay that housing bill. And sorry Bitcoin fans, there's no yield in Bitcoin without scamming people. So, let's stick with acquiring and fixing up properties, collecting rent, and enjoying the luxury it buys. Who needs number go up when you've got a steady stream of income?

⚡Lightning Art 2y ago

In South Africa the ANC government nearly passed a law in 2020 called The Expropriation Bill. Which means they can take your land without compensation. Actually the fine print said they could take any asset/property without compensation. Fortunately their coalition with another idiotic party, the EFF fell through. Doesn't mean they won't try again.

Land = shitcoin

Bitcoin fixes this!

StackSats ⚡️ 2y ago

Agree. The start of hyperbitcoinization will be the beginning of the descent 📉