IMO the general point is that real estate prices are severely inflated relative to other things & in addition to the possibility of a relative price adjustment in coming years there is also a non-zero risk of serious political instability. So the potential of incurring a total loss is much higher than at times in the past. Sound money (#bitcoin) is the right investment in times of uncertainty. I think there is also a bit of an airbnb bubble too, but certainly when it comes to cash flow the right sort of real estate can make a lot of sense.
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Real estate is a shitcoin because it’s a fraud. You think you own it, but you don’t really. You rent it from the government. Your title in the property just gives you the privilege to assign with govt approval.
It’s an investment only if you stay in the govt’s good graces and stay a good citizen. It will never perform as well as bitcoin over the long run.
Why buy real estate and give up your freedom?
Anything that is paying you bitcoin (or money that you can easily convert to bitcoin) isn't exactly stealing your freedom. But it is true that ownership of real estate is far from absolute & the risk of political instability exacerbates the problem. Currently it is still not particularly difficult to remain in good standing with govt. I agree that things could change rapidly (as covid demonstrated) & asset seizure is not an impossibility. I am sure that Bitcoin will perform better, but Bitcoin also probably isn't going to send you monthly payments, & cash flow can matter more than appreciation. If buying property that you can rent out allows you to quit working without dipping into your stack every month & maybe even still accumulate some during bear markets, then it might be setting you free. But keeping a high % of your wealth in Bitcoin & having a sailboat or a well maintained RV or some sort of backup/exit plan might serve as important forms of insurance so that your property can't be turned into actual chains.
I do find it extremely distasteful to have to pay anything to an organization that is clearly trying to enslave & destroy me, so I do fully appreciate your point.
Paying you? Just because you're earning a few dollars in monthly rent doesn't mean your real estate is "paying you" - at least not until such time as your entire investment has been returned, otherwise you're still down on your investment and hoping the government doesn't rug you before you get your investment back over a million months of rent.
Also, keep in mind that real estate requires a down payment and that’s bitcoin you need to sell, or bitcoin you didn’t buy.
If you consider the 20% down payment, you’ll be trading massive capital appreciation in bitcoin for the relatively small income stream you’re getting from the property over the lifetime of the mortgage.
I haven’t seen any case where real estate (even with the income stream) makes any financial sense over the long term.
This is exactly the point I was trying to make, although I said "entire investment" when I should have said "down payment amount" because it's only the cash you had to put up that you need to worry about getting back, not the amount printed by the bank when you took out the mortgage.
Thanks for clarifying.
Yep. The only time I could see myself buying property now is when it was somehow special for my family and I couldn’t otherwise rent it. Quality time with the family is more scarce than bitcoin. 💕
I’ve sold off most of my real estate already. I’m down to a few rental properties, which I can’t sell fast enough. (And, of course, real estate isn’t as liquid as bitcoin either.)
I was recently chatting about this with a friend of mine who was complaining about stuff going wrong at his house and cottage and how he couldn’t find contractors to take care of it. I was grateful that I don’t have these problems anymore.
Straw man alert! Don't feed the engagement trolls