MAHDOOD on Nostr: Let’s say I buy my first home worth $500k with an FHA loan. If I put down 3.5% ...

Let’s say I buy my first home worth $500k with an FHA loan. If I put down 3.5% ($17,500) and do a 30 year plan at 2.5% interest, then I’d pay $203,825 in interest. After calculating taxes, home insurance, and maintenance you end up paying over 1 million after 30 years. That is more than double the value of the house at the time of purchase.

Now $17,500 is not a lot for a down payment. Let’s say I put up $100k (20%) as a down payment. The interest I’d pay ends up being $169k which is slightly better. But the total cost to me in that 30 year span when you calculate taxes, insurance, and maintenance is $914k.

And this is an asset that is difficult to liquidate and impossible to move. Plus the government can take it away from you at anytime.

With $100k in fiat savings, would you rather buy bitcoin and rent an apartment or buy a house and slave over a depreciating asset?

$100k in bitcoin today could easily be worth more than the $500k home in the next 1-2 years.

quoting
note16se…ms5t

I think that the amount of “shitcoinyness” in real estate highly depends on the interest rate and what type of mortgage (e.g., 30-year fixed)

Like if you got in around 2020 for example with like a 2.5% fixed, I don’t see that as a shitcoin. If you’re messing around trying to buy today, you’re gonna be fucked with rates unless you have the cash.