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Its not that real estate investing is a guarantee after all, nothing is.
But many experts still prefer real estate over crypto, ormore specifically Bitcoin.
When it comes to real estate, it has the edge on newer options like Bitcoin.
According toRealtor.com data, the average return on real estate since 1975 has been over 26%.
Thats pretty significant, especially for the long-term investor.
Before investing, youll want to ask yourself a few questions:
Will you have a mortgage?
Do you intend to manage the property or pay a property manager?
How important arecertain tax benefits?
How important is liquidity?
Alternatively, should you purchase a publicly traded real estate investment trust (REIT) or a limited partnership?
A REIT may work best if liquidity and friction costs are a concern.
This only accounts for residential properties.
Cryptocurrency is a lot less stable by comparison.
Its value is entirely dependent on market sentiment, which can swing wildly, said Reedy.
Ive seen people make a lot of money on Bitcoin, but Ive also seen people lose everything.
Bitcoin doesnt give you that kind of flexibility.
It exists in our material world.
The same goes for assets like gold, art or other commodities.
As for Bitcoin, its not tangible.
Cryptocurrency as a whole isnt a physical commodity.
You cant touch it.
That said, theres still merit in having Bitcoin in your portfolio.
In this, real estate has the clear edge over Bitcoin.
Bitcoin doesnt have this advantage.
Investors can deduct things like mortgage interest and depreciation when filing taxes.
This can reduce their overall tax liability so they get to keep more of their wealth.
While thereal estate marketcan fluctuate, its much more predictable over time.
If you buy a rental property, you know youre getting monthly income from tenants.
Bitcoins future appears bright.
What could go wrong?
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