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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?

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.

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Discussion

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.