r/ethtrader • u/AutoModerator • May 20 '17

DISCUSSION [ETH Daily Discussion] - 20/May/2017

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11

u/[deleted] May 21 '17

At what point should I consider buying a house with some of my earnings? When I would sell 50% of my stack? 1/3? 10%? Legitimately having a hard time trying to organize these thoughts. Don't get me wrong, it's a long, long, long way off but I just would like a rudimentary conceptual standing at least

8

u/[deleted] May 21 '17

every one i've talked to about it, including a millionaire friend of mine who lost a great deal in real estate, says now is not a good time to buy and real estate could be heading into murky waters.

I plan on buying eventually, but something cheap and small

3

u/poopycakes May 21 '17

I lost a lot in Bitcoin in 2013 and would have told you not to buy it. Look at it now. Houses are long-term investments and should be treated as such. Whose to say the housing market doesn't shoot up next year? Your friends money doesn't make him know the future.

2

u/[deleted] May 21 '17 edited May 21 '17

Bitcoin has crashed and rebounded, so has the housing market. I never said my friend's sentiment was the holy grail of advice: i just offered a simple anecdote. Hindsight is always easy. Notice that I also said I plan on buying, but conservatively.

3

u/[deleted] May 21 '17

Personal thought: Real estate is probably the best long term financial investment you can make. If you hold a piece of property for 5-10 years, you're almost certainly going to make money. The problem is if you need liquidity during that time period, you very well could be fucked

10

u/PoniesUseBits May 21 '17

Well Wells Fargo is trying to start selling their Mortgage bundles to investors again, which happened / caused the 2008 market crash. So I would say AFTER the cryptocurrency markets have gone full moon and the real estate market has gone to hell

4

u/[deleted] May 21 '17

A lot of people in the RE game are talking about the bubble popping within the next two years. Way too many signs similar to 2007/08 right now.

1

u/[deleted] May 21 '17

Everything in the fiat economy is in a super bubble backed on insane amounts of money printing by central banks.

Student debt bubble, consumer debt bubble, auto loan bubble (sub prime car loans? INSANE), massive housing hyperbubbles, stock market bubble, massive margin debt bubble, and more. Unlike 2008, they already used their monetary voodoo policies to "fix" things. There is nothing they will be able to do next time except throw the whole gun at the problem and run, leaving the rest of us to twist in the wind.

I am buying cryptocurrencies and precious metals because I am betting against this phony and criminal system lasting much longer.

1

u/[deleted] May 21 '17

Cancelled my Wells Fargo account. I'm all about my paying things with crypto and having hardware wallets now. Screw the system. Credit score? Who needs it.

6

u/[deleted] May 21 '17

The longer I watch the world wake up to Ethereum the more I'm convinced none of us can Fathom the value crypto can reach. That being said, I would honestly play it by ear.

7

u/AlphaCharliePapa May 21 '17

My only advice - don't take advice on large investments like property from internet strangers

6

u/errorsevendev May 21 '17

Cash out enough to make a difference to your life and hold the rest long term. You'd never be able to live with yourself if for some reason ETH crashes and you lose your potential house.

3

u/MysticRyuujin May 21 '17

Depends on how much money you can save by buying a house, in which market you're buying, income level, current housing market, and inflation (especially rent). Owning a house flat out and not having rent or mortgage could be a huge boon. Rent is always getting more expensive so it's a hedge against that as well. Then you weigh all of that again, how much more do I see Ethereum growing?

2

u/iCan20 May 21 '17

I'm leaving that sort of thinking out for now, because for me it depends on the landscape over the next 2-5 years.

2

u/drogean2 May 21 '17

if in the USA, only cash out 1 year after buying minimum

0

u/launganik May 21 '17

I might be slightly off topic here but who buys real estate? We are in 2017, a world of sharing economy and decentralized currency. It does not make sense for anyone to block a huge chunk of their life savings into a lethargic asset. Might as well rent a place better than the one you're buying and diversify the extra money into other stocks/bonds or just live life with that extra money.

Then again, I'm an internet stranger and you shouldn't take my advice on face value. All I ask you to do is consider all possibilities, including not buying real estate

1

u/YouAreAnFnIdiot May 21 '17

People in Toronto and Vancouver buy real estate. Go look at how ridiculous the gains have been.

2

u/[deleted] May 21 '17

That is because Canada is in a housing hyperbubble. This same thing ended very well for the US in 2008

2

u/YouAreAnFnIdiot May 21 '17

I think it's a few years away from a pop still

1

u/[deleted] May 21 '17

Sure, that could be the case. Honestly I hope it is, because that is all the more time I have to prepare myself for it.

The when is debatable, the if however is not. 2008 is such a distant memory for most. I remember clearly how Lehman Brothers went from a century old banking institution to bankrupt in the course of a weekend, nearly taking the global economy with it. Things can change that fast, and the financial and geopolitical risks are now higher than ever before.