Real estate has been considered for one of the strongest and most “secure” investments. With buying property, you get the tangible object (a land or property) which gives you that sense of security. On the other hand, the rise of new types of investments has shaken the traditional concept of investing money. Bitcoin investing is the perfect example of non-traditional investments. Investing in a digital product with a value that is determined solely by the market (not the general market, but rather a particular market made of buyers and sellers only) is praised for being new ways of making a strong income stream.
Where can you gain more profit
Learning about investing in real estate or Bitcoins can give you an advantage, but you need to be consistent. The key to making a profit in both cases relies on numerous facts, which often are beyond your control. The risk of losing your investment or not gaining an expected ROI is valid in both cases. The question is, can you afford the risk?
Let’s take a look at features of real estate investing and Bitcoin investing more closely.
Real estate investing
Owning a property can come in the form of owning a land or property, which breaks down to commercial or residential properties. Investors are using land development investing strategy if they want to stay out of an additional building and maintaining costs. However, home flipping or renting are also popular within realtor community, especially after the major real estate market crash in 2008.
Joe Nahas, Managing Director of Coronation Property, is a person of trust when it comes to real estate investing. His strategy in recent years includes recognizing the potential in urban properties and building commercial buildings with high investment return.
The pros of real estate investing lie in the fact that an investor operates with real, tangible objects, which are easier to control. You always have access to the property – you can see it, assess it, and make your opinion based on the facts, not only assumptions. On the other hand, real estates usually come with additional costs. That includes not only taxes, but also capital costs, monthly maintenance costs, and in some cases development costs. Additionally, the real estates are dropping in a value of the years, since they require constant investing to keep them in a healthy state.
The hype on Bitcoin market is getting louder since this digital currency keeps breaking the marks. Potential ROI rate is much higher because the currency itself is very volatile. However, the volatility of Bitcoin is also its weak spot, according to some experts. Find out more about Bitcoin investing here.
The changing rates of Bitcoin value might seem appealing, but you shouldn’t forget that a significant fluctuation in value usually goes with high risk. If you want an investment that’s filled with adrenaline and surprising turnovers, then bitcoin market is a fit for you.
The value of a bitcoin is determined by the core rule of buyer-seller exchange. This is perhaps one of the major pros of Bitcoin investing since you’ll be able to participate in the creation of value of Bitcoin. However, the ROI on your investment may not be so appealing.