Here’s why investing in real estate is better than investing in Bitcoin.

Today I’m sharing the five main reasons real estate is a better investment than Bitcoin:

1. Financing. If you want to buy Bitcoin for $400,000, you need to have $100,000 in cash, but if you want to buy a rental property for $100,000 you don’t need all the money, you just need 20% for a down payment. The rest could come from a bank as the financing. With real estate, you can get financing, but no financing is available for Bitcoin.

2. There is no cash flow with Bitcoin. If you buy Bitcoin, that’s it; you just wait for the price to increase. There’s monthly cash flow if you buy real estate and rent it out, and then you start getting monthly income. This monthly income will increase your return on the investment.

3. Tax benefits. There are virtually no tax benefits to owning Bitcoin. However, for real estate, there are plenty of benefits. There are tax rules like the 1031 exchange, depreciation of a building, and the stepped-up basis on an inheritance of a piece of real estate. These tax benefits could significantly reduce your liability when you’re getting cash flow and even remove some of the capital gain taxes. 

 

“The crucial thing is to buy the right property in the right location so that it will double in value within 20 years.”

4. Control. When you have a Bitcoin investment, you have virtually no control. You can only buy and sell it—that’s it. You have no control over the stock market. On the other hand, if you choose to invest in real estate, then you can buy a property for a little cheaper and fix it up yourself. Some sweat equity always increases a property’s value. Then you can rent it out, get tenants, and get an income from it. You have a lot more control over what happens with your real estate.

5. You can sleep in it. if something happens and you need to move, you have a property to use for your own purposes. You cannot sleep in a virtual currency portfolio.

If you have any other questions or would like more information about real estate investing, please give me a call or send an email. I’d be glad to help you.