Should I Sell my Bitcoin and Other Crypto Assets to Buy a House, or Rent and Get Interest on my Crypto Assets?

[Neeranam]

Does anyone have any thoughts about renting or buying a house? I am a Naturalized Thai, so no issue with land ownership. 

 

My dilemma is whether to sell my crypto assets or not. 

 

At the moment, I am getting enough staking rewards(interest) to be able to rent a house that I could afford to buy if I sold everything. For example, a 15 million baht house, which is renting for 50k a month. 

 

I, and most others, expect the BTC price(now $49k) to rise to $110-200k by the end of the year, then drop to $40k for another couple of years. I can get about 6% for staking(lending) my BTC and up to 19% for other crypto assets. 

 

So the question is, buy or rent(using the interest on assets).

 

 

 

 

 

 

[Sametboy2019]

Unless anyone on here is a chart analysis then it's impossible to say for sure and even they get it wrong.

Heard a few people saying sell November/December because a crash is coming.

As they say here "Up to you".

Edited August 24, 2021 by Sametboy2019

[Neeranam]

6 minutes ago, Sametboy2019 said:

Unless anyone on here is a chart analysis then it's impossible to say for sure and even they get it wrong.

Heard a few people saying sell November/December because a crash is coming.

As they say here "Up to you".

Even chart analysts don't know for sure! 

 

However, the numbers I gave are what it looks like. 

[david555]

AS a Thai you should now take your Bitcoin profit as it is a buyers market for those with cash ....and your Thai owned house can not be stolen by hackers as regular happens with those ...."coins..." ????

 

Afterwards you can still "poker-play" wit some pocket money on bitcoin ????

Edited August 24, 2021 by david555

[tonray]

This is less about whether you should sell your crypto and more about whether you want to be a homeowner or renter,

[Neeranam]

3 minutes ago, tonray said:

This is less about whether you should sell your crypto and more about whether you want to be a homeowner or renter,

No, it isn't. I am already a home-owner. 

 

I can rent my current house, or sell it when I move. 

 

It's about whether or not to sell my crypto assets. 

[Neeranam]

4 minutes ago, david555 said:

AS a Thai you should now take your Bitcoin profit as it is a buyers market for those with cash ....and your Thai owned house can not be stolen by hackers as regular happens with those ...."coins..." ????

 

Afterwards you can still "poker-play" wit some pocket money on bitcoin ????

Not quite as simple as that. 

 

Sell BTC at $100k now and buy a house OR rent a house with BTC interest and sell same BTC in 4 years for $500k. 

[Caldera]

I'd definitely invest in real estate during the pandemic, but I wouldn't sell ALL of my crypto assets to do so. How about half?

[david555]

Just now, Neeranam said:

Not quite as simple as that. 

 

Sell BTC at $100k now and buy a house OR rent a house with BTC interest and sell same BTC in 4 years for $500k. 

I think you want both ..... not possible to eat egg's whiteout breaking the shell ????

[Neeranam]

Just now, Caldera said:

I'd definitely invest in real estate during the pandemic, but I wouldn't sell ALL of my crypto assets to do so. How about half?

That's another option - sell half and get a mortgage. 

 

So basically, borrow money from the Bank at 3.5% while getting 15% by lending it out myself. 

[The Cipher]

33 minutes ago, Neeranam said:

I, and most others, expect the BTC price(now $49k) to rise to $110-200k by the end of the year, then drop to $40k for another couple of years. I can get about 6% for staking(lending) my BTC and up to 19% for other crypto assets. 

First time I am seeing this specific prediction. Who are these others?

 

10 minutes ago, Neeranam said:

Sell BTC at $100k now and buy a house OR rent a house with BTC interest and sell same BTC in 4 years for $500k. 

If your confidence level in this is high, then your best move is easily to either rent or buy on the biggest mortgage you can get without selling.

 

Think about it - assuming that your BTC is worth exactly $50,000 per right now, and that it will be worth $500,000 per in four years, that's a 900% holding period return and a 77% compound annual growth rate. How are you ever going to beat that by buying property?

[david555]

4 minutes ago, The Cipher said:

First time I am seeing this specific prediction. Who are these others?

 

If your confidence level in this is high, then your best move is easily to either rent or buy on the biggest mortgage you can get without selling.

 

Think about it - assuming that your BTC is worth exactly $50,000 per right now, and that it will be worth $500,000 per in four years, that's a 900% holding period return and a 77% compound annual growth rate. How are you ever going to beat that by buying property?

"Think about it - assuming that your BTC is worth exactly $50,000 per right now, and that it will be worth $500,000 per in four years, that's a 900% holding period return and a 77% compound annual growth rate. How are you ever going to beat that by buying property? "

 

If that would be true ...., he better start borrowing money to buy more BTC ...... IF (?!).... i repeat... if that would be true to be  believed by him  ....????

Edited August 24, 2021 by david555

[Neeranam]

5 minutes ago, The Cipher said:

Think about it - assuming that your BTC is worth exactly $50,000 per right now, and that it will be worth $500,000 per in four years, that's a 900% holding period return and a 77% compound annual growth rate. How are you ever going to beat that by buying property?

There is, of course, risk, but bitcoin has performed this well over the last 10 years and now institutions are buying! 

 

I need a house to live in, it is not an investment, but renting a house feels like throwing money away. 

 

 

[Kalorymetr]

Where are u staking?

 

Btw, buy with mortage and pay off with BTC interest. WIN WIN

Edited August 24, 2021 by Kalorymetr

[david555]

21 minutes ago, Neeranam said:

Not quite as simple as that. 

 

Sell BTC at $100k now and buy a house OR rent a house with BTC interest and sell same BTC in 4 years for $500k. 

Well  .... you put that headache now on yourself .... ain't it ? ????

[Will B Good]

1 minute ago, Neeranam said:

There is, of course, risk, but bitcoin has performed this well over the last 10 years and now institutions are buying! 

 

I need a house to live in, it is not an investment, but renting a house feels like throwing money away. 

 

 

Why is renting a house like throwing money away. It is certainly not how I look at.

 

If you have the capital, invest it and rent. That works here (not necessarily in the UK) because rent is incredibly low. The interest you earn on your capital will outweigh the cost of your rent.

 

Renting also has the advantage of no maintenance worries, you can move if anything happens (noisy neighbors, abattoir opens up next door).

[Laughing Gravy]

32 minutes ago, Neeranam said:

Not quite as simple as that. 

 

Sell BTC at $100k now and buy a house OR rent a house with BTC interest and sell same BTC in 4 years for $500k. 

I wouldn't sell now, especially as we are at the most prolific part of the bull run. BTC and other Crypto in general is only going to get bigger with greater adoption from all types of investors. Maybe at the end of the next bull run would be a good time. It just depends how much money you want.

 

There are not many things in the world that is legal than can produce such great gains as Bitcoin and other alts.  People just need to know about the halving cycle, the adoption of crypto and when to sell and when to buy. 

 

Not financial advice of course.????

 

Edited August 24, 2021 by Laughing Gravy

[Bluespunk]

deleted

Edited August 24, 2021 by Bluespunk

[jvs]

I may be old fashioned but i have always believed in owning the house i live in.

Crypto sounds very nice but it is not for me,too late to get into it i think and i do not

have money to gamble with.

Land and house will never be worthless no matter what happens,even if it is worthless

on paper you will still have a place to live and grow food.

Take the profit and don't look back.

 

 

[Mr Meeseeks]

30 minutes ago, Neeranam said:

That's another option - sell half and get a mortgage. 

 

So basically, borrow money from the Bank at 3.5% while getting 15% by lending it out myself. 

That is what I would do. Best of both worlds.

 

Keep your crypto assets and borrow from the bank. 

[1FinickyOne]

I think you have a couple of issues going on here too...

 

one of several things I don't get abt crypto is why it does not get devalued w/each new 'invention' of a new crypto coin? I know you believe otherwise, but I do not see it as a stable investment vehicle... your choice in investments will be determined by the courage of your convictions.. 

 

you seem to be thoughtful and knowledgable enough,,, take the risk, spread the risk around.. up to you? 

[simon43]

[quote]....and your Thai owned house can not be stolen by hackers as regular happens with those ...."coins..." 

[/quote]

 

Well, hackers can't steal from cold (offline) wallets.  Only a fool keeps their crypto in the wallets provided by the various exchanges!

[The Cipher]

5 minutes ago, david555 said:

If that would be true ...., he better start borrowing money to buy more BTC ...... IF (?!).... i repeat... if that would be true to be  believed by him  ....????

5 minutes ago, Neeranam said:

There is, of course, risk, but bitcoin has performed this well over the last 10 years and now institutions are buying! 

I am long some BTC (although mostly I'm long Eth), so I do expect the price to rise, in general, over the medium term. But. One thing to keep in mind re: performance is that the total market cap of the asset matters. The current Bitcoin market cap is, let's say, $1T. So it would need an additional $1T in appreciation to 2x from here and an additional $4T to 5x from here. That's a lot of money. Consider that if Bitcoin had a market cap of only $500,000, new inflows of just $2M would result in the same 5x performance. So the bigger it gets, the harder it gets to do multiples. Just something to keep in mind.

 

12 minutes ago, Neeranam said:

I need a house to live in, it is not an investment, but renting a house feels like throwing money away. 

This depends on your expectations. Renting isn't throwing money away if the opportunity cost of the equity tied up in buying outweighs the cost of renting. In this case your opp cost would be (hypothetically) foregone crypto returns. So whether it's worth it or not depends on your future expectations and also your risk appetite. Then it just comes down to some quick spreadsheet math.

[Pravda]

Even if Thai I wouldn't buy a house. A friend of mine has around 700,000 dollars put in Celsius (me I can only dream) and gets around 1,200 weekly. He doesn't take cash, but has it reinvested in more coins.

 

 

Edited August 24, 2021 by Pravda

[david555]

Just now, simon43 said:

[quote]....and your Thai owned house can not be stolen by hackers as regular happens with those ...."coins..." 

[/quote]

 

Well, hackers can't steal from cold (offline) wallets.  Only a fool keeps their crypto in the wallets provided by the various exchanges!

How many big hackings lately..... or do you not read news ....? Even one owner died and no recovering possible...

[Will B Good]

1 minute ago, The Cipher said:

Renting isn't throwing money away if the opportunity cost of the equity tied up in buying outweighs the cost of renting

Spot on and in Thailand that will nearly always be the case.

[CrunchWrapSupreme]

37 minutes ago, david555 said:

it is a buyers market for those with cash ....and your Thai owned house can not be stolen by hackers

Indeed. On the main road from our village a few months ago, a for sale sign sat on a house with a decent plot of land. There it sat and sat for awhile. Wife and I said oh, if we only had some money. I thought it'd go for a couple of million. We could open a shop by the road. Easy access. No more moo ban traffic, kids and chickens. Heh.

 

Finally the for sale sign disappeared. Then we saw work being done on the house. Oh, our dreams shattered. Then my wife heard through the grapevine the selling price. 300k baht. $9000 USD. I actually had that cash a few years ago. Jesus. Sure wish I still did.

 

If you've got cash, there's Thais who definitely need it, and thus it's definitely the time to buy.

[Neeranam]

7 minutes ago, simon43 said:

Well, hackers can't steal from cold (offline) wallets.  Only a fool keeps their crypto in the wallets provided by the various exchanges!

I might say only a fool doesn't keep their crypto on a safe exchange, like Kraken which has insurance. I keep my Polkadot there getting 12% pa.

[The Cipher]

5 minutes ago, CrunchWrapSupreme said:

If you've got cash, there's Thais who definitely need it, and thus it's definitely the time to buy.

Hmm, do you think this is a good time to pick up a nice condo in downtown Bangkok? A lot of those buildings seem to have plenty of unsold units, so I do wonder...

[Neeranam]

9 minutes ago, The Cipher said:

So the bigger it gets, the harder it gets to do multiples. Just something to keep in mind.

Indeed, that's why I am forecasting a conservative x3 from here, whereas in 2017 at the same stage of the cycle, it was x20, and in 2013, x100.