Last edited:
Hello!
The question often arises: "What is more profitable to invest money in: Cryptocurrency (DFA) or Real Estate?"
Okay, let's first compare the concepts (terms) themselves, then look at the price chart and add to them the convenience of service.
Terms and definitions
Wikipedia says:Let's add:Bitcoin, or bitcoin, is a peer-to-peer payment system that uses a unit of the same name to record transactions. Cryptographic methods are used to ensure the functioning and protection of the system, while all information about transactions between system addresses is available in open form.
Peering (from English peer - equal in rights) is an agreement between Internet operators on the exchange of traffic between their networks.
The result is a financial system for the exchange and distribution of data on a single Currency, protected by cryptographic algorithms with a common registry.
The basis of the definition and the basic principle is free movement and openness of verification.
Real estate (real estate) includes land plots, subsoil plots and everything that is firmly connected to the land, that is, objects that cannot be moved without disproportionate damage to their purpose, including buildings, structures, unfinished construction projects.The basis is the impossibility (high complexity) of movement. Here we will also add the closed nature of many parameters (for example, there may be hidden encumbrances, restrictions on rights, the possibility of seizure, blocking of transactions).
Prices and Profitability
Cryptocurrency
I'm just showing the graph of the Growth in value for 1 year (as of December 24, 2024)
Now its value in dollars is
Bitcoin/USD
Okay, let's see how popular real estate properties are doing.
What is the Growth in Real Estate Prices
Dubai, UAE
Land has risen in price by 124%, luxury villas by 21%, Apartments have grown by an average of 11%.
Property Sales by Price Range
A wide spectrum of buyers and investors show us different interests and opportunities :- Below AED 1 million: Comprised 28% of transactions, highlighting the market’s accessibility to first-time buyers and investors seeking affordable options.
- AED 1-2 million: Represented the largest segment at 34%, indicating strong activity in the mid-market range, appealing to both end-users and investors targeting properties with favorable rental yields.
- AED 2-3 million: Accounted for 20% of transactions, reflecting interest in higher-end properties that offer enhanced amenities and prime locations.
- AED 3-5 million: Made up 10% of Dubai’s property market, showcasing demand for luxury residences among affluent buyers seeking premium features and exclusivity.
- Above AED 5 million: Constituted 8% of total transactions, underscoring a robust luxury market segment driven by high-net-worth individuals investing in ultra-luxury properties and bespoke developments.
But there are nuances: for example, to invest here you need to correctly assess the parameters and prospects of the location. The area varies greatly from area to area. The same goes for the quality of construction from different developers.
Please note that the dynamics most likely do not reflect maintenance costs - utility bills. And this can greatly reduce profitability.
Moscow, Russia
The average annual price increase is 8% y/y. And this is in rublesIn the elite segment, it can be 16%, if we find a unique property in a great location.
In Krasnodar
Approximately the same as in Moscow.In Sochi
Supposedly a threefold increase. BUT Please note that this is the seller's personal opinion.
Objectively speaking, price fluctuations depend not only on locations, but also on seasonality, the reputation of developers and the quality of their work, service organizations and many other hidden nuances that greatly affect the price tag.
Liquidity and comfort of service
Bitcoin cryptocurrency
Sale, Purchase, Exchange of a Digital Financial Asset (DFA) takes about 10 minutes.Need a Reliable Exchanger or Wallet?
Find out by request in a Personal Message by clicking Here
It is important that there is constant supply and demand here and there is no emotional moment of choice like in real estate: like/dislike - here are only Numbers, Amounts, Budgets. Only Business, nothing personal - unnecessary))
Land, houses, apartments, penthouses
Any transactions require the collection of many certificates. Even if you conduct them remotely and request information through State Services (in the Russian Federation) or the Dubai Land Department, the following are technically required: signatures (even if electronic) of the parties, verification of documents, approval of clauses of the agreement on the transfer of ownership, registration. And this is only part))((To this we must add the possibility of cancellation or challenge of even registered rights.
In short, investments in real estate, especially in the secondary market, require a strong security audit.
Conclusion
It is 100% worth investing in houses and apartments when there is a need for personal housing.But as an asset for quick entry and exit, it is not suitable.
Cryptocurrenies (especially Bitcoins) are very mobile both for purchase and storage. Regular price growth of more than 100 percent per year speaks for itself.
To choose a time and investment strategy, write a personal request in the message form.
Ciao
Last edited: