Why Real Estate Is a Preferred Investment Over Cryptocurrency
Opinion by Grant Bowen
Unlike investing in real estate, crypto investing is a simple process in which anyone can participate. So why aren’t we all doing it? The highs and lows of “crypto” are no joke. It is such a volatile marketplace that crypto crashes are being linked to a spike in mental health crisis events. Please understand I do not share that anecdote lightly. Mental health supersedes all - wealth included. But for anyone who has investable funds in these unpredictable times, I have some good news for you.
There is something far less volatile than crypto or even the regular stock market - real estate. When we look beyond the trends of both crypto and real estate, diversifying into real estate holds several distinct benefits.
Real Estate Investing is Not Speculative
Crypto has only been around for 13 years, since 2009. So it’s tough to say there is enough “history” to base your investment on crypto. The lack of historical data makes investing in crypto extra speculative. Meanwhile, with real estate, many have relied on this popular investment vehicle over the last 50 years. Though there were slight ups and downs (most notably in 2008), median real estate prices have continued to trend upward over the long run.
Furthermore, the national real estate market has exploded in the last two years. It was not uncommon to see appreciation rates over 30%. The historical appreciation rates are substantial indicators of success.
Investors Can Leverage Legitimate Tax Deferral Strategy
Although the narrative of cryptocurrency tied to corruption has been widely disproven, it does operate in a reasonably unregulated environment. Meanwhile, real estate investors can benefit from government grants to buy investment properties or leverage the Revenue Act of 1921, which established the 1031 Exchange under the IRC Section 1031 tax code. 1031 Exchange is a legitimate tax deferment strategy where property owners can defer capital gains taxes on a sold property and use the funds to acquire a new property of equal or greater value in a designated period.
Real Estate is a Commodity Everyone Needs
Homes are necessities that people need to keep them and their families safe, warm, and protected. Therefore, there will always be a need for real estate. People have to live somewhere as the human population increases, right? The bottom line: investing in real estate is smart because the property is tangible. People always have, and always will need shelter. This means it is very unlikely that our need for shelter (ie: buying or renting homes) will ever go away – beautifully said by Kathy Fettke, RealWealth Co-Founder & Real Estate Investor.
Conclusion
Doorvest supports all of your investment objectives. Many Vesties (Doorvest team members) also own cryptocurrencies. Our goal is to advance financial security for all, and real estate is historically a safer long-term investment. Nobody can promise your money will grow at “X” percent to make you rich, but diversifying into safe, reliable asset classes like real estate is a safer option that most people can get behind.
Build Wealth Through Doorvest
Doorvest buys investment homes and then invests in their significant overhaul. We front the capital to take a property all the way to rental-ready - even sometimes having residents in homes paying rent before a customer even closes on them!
The idea is simple - we want to make access to the wealth generated from owning real property as simple as clicking a button. We allow our customers to invest in homes remotely, without the hassle of living locally to that home nor bearing the burden of researching the market, entering a bidding war, or managing the property. We take on the up-front risk on the home, all to sell it to you at a fair price and earn your long-term business with our property management services.
Get started by telling us more about your investment criteria and submitting a fully refundable deposit to begin receiving exclusively curated investment opportunities that match your goal.
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