Bitcoin is going up? Housing is going down? Should you buy a house with crypto?
Now that bitcoin is going up and up and down and up, is it a good idea to take some of your bag and pay off your house (or buy a house?)
Is it a good idea to take all of your bag and get that house you have always wanted?
Well… it depends
The housing market??
The housing market, appears to have stalled at the peak. Prices are not dropping precipitously, but in many places they are down. (and some places, they seem to still be going up.)
However, very little is selling. There is little inventory and very few buyers. Very few can afford the high house price with the high
And foreclosure departments are gearing up for a massive amount of volume.
Houses are at the least affordable level (price / income), even worse than just before 2008.
Chairman Powell announced that the Fed will be lowering the rates twice. Will this make house sales take off again? Or has he done enough to destroy the economy / jobs, that nothing is coming back.
But, does any of this matter? Not really. It is apparent that house prices can't really go up in this economy. Meaning, that buying a house and expecting it to gain equity is not something you can reasonably expect.
Is it the best time to sell crypto to buy a house?
But you have all this (or will have) expensive bitcoin burning a hole in your pocket!
Why can't you just get that thing you've always wanted, a house (or an expensive house)?
Actually, there is nothing wrong with it. It is just the opportunity costs may be extremely high. And you will end up wishing you had waited. Or worse, bought a house somewhere else, after your city becomes mostly peaceful but still fiery.
So, what do we expect bitcoin to do? Go up for about a year.
What do we expect houses to do? Drop in price, or REALLY drop in price.
Waiting will be the best option. If you want to make the most of your crypto.
But, what if you have lots of crypto, and little housing? YOLO? You can't spend your crypto after you are dead. And you might have enough crypt now that you will never be able to spend all of it. (as long as you are conservative.)
So, my suggest would be to hold off for 9 months, and then swap crypto for a house when crypto are high and houses are low.
Buy that homestead
What are some places you should buy right now?
Well, the future is really uncertain, but i can tell you that you need to be growing your own food. And the sooner you get planting, the sooner you can depend on yourself for food. (it is a learning curve) So, i recommend buying a homestead type property as soon as you can afford it and move onto it.
I doubt good homestead locations are going to go down in price. They are already a steal compared to suburban McMansions, and see them holding their value, or going up in price as they are bought off the market into diamond hands.
So, you may be wasting a bitcoin to buy such a place, but if it is yours to waste, go for it. And, when food is scarce, any price is not to high to pay for food growing property. And you will be glad you paid it.
In my opinion, suburban house prices are going to drop to zero. So many forces are just going to make living their untenable. Entire tracts are going to be left vacant. Buying one today is a losing proposition. But, if your heart is set on one, wait a little while as cryptos go up and suburban house prices go down.
If you have already decided on a homestead lifestyle, and are just waiting for the right opportunity to get out (from your job, societal demands) the opportunities are coming. Start getting into the market. Look what is around. Start finding people you would like to have as neighbors. Finding your community is actually job one.
This will probably be the last year where you will sell your cryptos for cash, and then use the cash to buy property. The off ramps will be shut down AND many people will just want the cryptos. As they are selling off stuff to get cash to buy cryptos. I think you can trade cryptos for property, but you wil be blazing a trail if you do it now. (but look at all the stuff on craigs list that is for sale for crypto) A year from now, i feel it will be "the" thing to do.
So, stay flexible.