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.
Investing in the property is indeed very good, but we have to think about it, how we will get from there. an example in my country if we buy land on a housing project for $ 20,000, and to build a house we need $ 7000, it means we have to spend $ 27,000. and if it is finished we can put a price of $ 40,000, can be seen we will get how much profit. and this I have to prove yes, of course, I invest property from bitcoin as well. indeed this takes a long time.
