r/Bitcoin

Buying a house vs investing in BTC

Average 3bed 2.5bath house in Southern California set you back about $1.3M. Not many people have that much money to buy it in cash (if you do, you’re one of the lucky ones). So, you need to get a mortgage with 20% down to avoid the large mortgage insurance. That means you have to have $260K for a down payment and a monthly payment (including taxes, insurance, and HOA fees) of about $8.8K. After 30 years, you have paid to the bank $3,179,393, of which $1,040,000 is the principal and $1,450,893 the interest you have paid to the bank. At that time, if your house value has doubled to $2,600,000, you have lost over $579,000.
If you didn’t buy a house and decided to rent, you can rent a similar house for about $4,500 a month and not worry about any other fees and expenses. If you’re brave enough to dump the $260,000 you have saved for a down payment in BTC, assuming a modest 5% return, after 30 years, you’ll have $1,123,705. In this case, you’ve had a lower rent vs monthly mortgage payment and a gain of over $850,000. Of course, nobody can with certainty predict the future of housing and the price of BTC. But, to me, it seems investing in BTC is a winning choice.

Please DO NOT sell your house and put the proceeds in BTC based on this analysis. Do your own research before investing.

https://redd.it/1l02j92
@r_bitcoin

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126 viewsMay 31 at 18:37

Buying a house vs investing in BTC

Average 3bed 2.5bath house in Southern California set you back about $1.3M. Not many people have that much money to buy it in cash (if you do, you’re one of the lucky ones). So, you need to get a mortgage with 20% down to avoid the large mortgage insurance. That means you have to have $260K for a down payment and a monthly payment (including taxes, insurance, and HOA fees) of about $8.8K. After 30 years, you have paid to the bank $3,179,393, of which $1,040,000 is the principal and $1,450,893 the interest you have paid to the bank. At that time, if your house value has doubled to $2,600,000, you have lost over $579,000.
If you didn’t buy a house and decided to rent, you can rent a similar house for about $4,500 a month and not worry about any other fees and expenses. If you’re brave enough to dump the $260,000 you have saved for a down payment in BTC, assuming a modest 5% return, after 30 years, you’ll have $1,123,705. In this case, you’ve had a lower rent vs monthly mortgage payment and a gain of over $850,000. Of course, nobody can with certainty predict the future of housing and the price of BTC. But, to me, it seems investing in BTC is a winning choice.

Please DO NOT sell your house and put the proceeds in BTC based on this analysis. Do your own research before investing.

https://redd.it/1l02j92
@r_bitcoin

BY r/Bitcoin