If You think of the importance of real estate as collateral in the banking system it seems to get really dark. I see prices coming down even harder. Maybe over a longer period.
Found on 'X' -Zerohedge
393 sats \ 6 replies \ @kepford 27 Nov 2023
Real Estate is very interesting now. Higher interest rates are having an affect. But, I read that there is still a shortage of housing. Seems to me that what we are going to see is in the home markets more people will be renting and investors will be buying what only they can afford. Very curious to see how it pans out.
People need a place to live. If they don't have the cash and they can't afford the payments they will be forced to rent. To me, this seems like a great time to get into rental props. Once the market bottoms out that is. Rentals as an income stream more than an investment. More as a true business vs. a place to park your money.
This is where I think bitcoiners get it wrong. I agree that bitcoin will eat the prop investment market but people need housing so there will always be a market for housing. Its gonna be very different though. Not sure how it will pan out but like in many areas bitcoiners like to over-simplify a complex market. Stay curious and skeptical.
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10 sats \ 4 replies \ @TomK OP 27 Nov 2023
Question is if Your real estate investment will hold pace with BTC growth rate. My mother owns some larger hostals and believe me: the net ebitda may be between 5-10% in a good year. And it makes a lot of work. She is 76 now and working with her little team like hell to fight the effects of higher taxation, vandalism etc etc
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1 sat \ 1 reply \ @kepford 27 Nov 2023
No argument here but if there is a need/market it will be filled by someone or something.
I mean, bitcoin beats everything...
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0 sats \ 0 replies \ @TomK OP 27 Nov 2023
Yes, You're right.
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0 sats \ 1 reply \ @Signal312 27 Nov 2023
In case anyone was wondering -
EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income. By including depreciation and amortization as well as taxes and debt payment costs, EBITDA attempts to represent the cash profit generated by the company's operations.
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0 sats \ 0 replies \ @kepford 27 Nov 2023
Not a EBITDA fan. In an age of easy debt seems to reduce visibility of debt. I'm no expert but that's how I've understood it.
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0 sats \ 0 replies \ @sudonaka 27 Nov 2023
No way it will keep up with btc. Sell everything and convert to coins
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42 sats \ 5 replies \ @fm 27 Nov 2023
price will go down a lot..
2008 again
with the new interest rates no one can buy decently,
and the ones who have the full cash will wait to buy the dip
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0 sats \ 4 replies \ @TomK OP 27 Nov 2023
Here in Spain the market is frozen
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0 sats \ 3 replies \ @fm 27 Nov 2023
well, Madrid and Barcelona have already adjustments due to big tenants and vulture funds started to dump stock to counter the low sales..
when the common folk need to sell, he will face an asset with a huge price drop on the market.. this will come sooner than later
https://www.lavanguardia.com/economia/20231119/9388726/barcelona-madrid-dan-senales-caidas-precios.html
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0 sats \ 2 replies \ @TomK OP 27 Nov 2023
Back to 2008...
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0 sats \ 1 reply \ @fm 27 Nov 2023
with one difference..
bitcoin will be way more expensive to buy.. damn
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0 sats \ 0 replies \ @TomK OP 27 Nov 2023
Yeah but we had more than one deflationary year in btc. Enough is enough!
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100 sats \ 0 replies \ @sancristrader 27 Nov 2023
The prices of new homes fell sharper because on the existing ones the owners have low interest mortgages. They are reluctant to sell and swap them for higher interest mortgages.
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