Bitcoin vs. Real Estate 🥊

Hey friends, it’s finally Friday! Here are today's top stories in real estate & investing:

• Millennials drown in homebuyer's remorse

• Bitcoin edges out real estate for crisis security

• Bezos grabs $147M worth of Miami mega mansions

• 🔥 Deal of the Day! 🔥: 2 bd | 1 ba | El Prado, NM

Millennial Homebuying Woes Hit 92%

The path to homeownership is riddled with pitfalls for Millennial buyers. A staggering 90% now regret their first purchase, up 8 percentage points from just a year ago according to a recent survey.

High interest rates and inflated home prices have battered their dreams more than any other generation. Over half couldn't afford the 20% down payment best practice, instead putting 3-10% down. A quarter had less than $10,000 saved when they bought.

They're paying the price now. Top regrets include high interest rates (25%), expensive mortgages (22%),bad locations (27%), and outgrowing homes too quickly (20%). 67% wish they'd bought when rates were lower. 78% would now accept an above-average rate over 7%.

The numbers paint a desperate picture. 93% say market conditions altered their plans. 79% would overpay for their perfect home. 57% search for sub-$400,000 properties despite the $431,000 median cost. Monthly ownership expenses average $17,500 - $9,600 more than a typical monthly Millennial income.

But Millennials still cling dearly to the ownership dream, believing it crucial to realizing the American ideal (78%). They're willing to make concessions like accepting higher rates (39%), maxing budgets (30%), and paying over asking (29%) to make it happen.

The forecast offers some breaks in the storm clouds. Sellers will likely begin negotiating more (41%) and dropping prices (26%) as inventory builds. But even if rates decline, most Millennials will still carry the baggage of financial and emotional scars from their first ill-fated attempt at homeownership.

Tread carefully, my friends. Make sure you've learned the hard lessons others paid so dearly for. Only with meticulous planning, personalized advice, and some luck will you avoid the regrets that have caused 90% of Millennial buyers to see their first home as a "nightmare purchase”.

Bitcoin Beats Out Real Estate For Crisis Protection

Let’s review what bitcoin enthusiasts believe…

War threatens over $280 trillion worth of global real estate - humanity's largest store of value. Just last year, conflict killed over 238,000 while ravaging Syria, Ukraine and beyond. Entire regions saw buildings leveled, life savings destroyed.

Real estate's immobility causes issues. The word itself - "Immobilie" in German - means unable to move. When forced to flee, you must abandon it. And it's easily pillaged. Armies have ransacked cities for millenia.

Bitcoin provides an alternative. As scarce digital property, bitcoin cannot be destroyed or confiscated. Hardware wallets costing just $50 store it safely offline. Or you can memorize a 12-word backup phrase and essentially carry your funds in your head.

Satoshi Nakamoto designed bitcoin to counteract government overreach. Nazis seized Jewish property in WWII. Castro confiscated belongings when he took Cuba. China frequently freezes assets of dissidents today. Bitcoin protects against such injustices.

And while soaring interest rates now batter real estate, reducing affordability, bitcoin remains unaffected by traditional finance. Its price instead depends on adoption and its coded supply schedule.

Something unprecedented happens every four years in Bitcoin - the code cuts the daily supply in half. In 2024, instead of 900 new bitcoin mined daily, only 450 will emerge. This halving drops Bitcoin's inflation rate from 1.8% to 0.9%, increasing scarcity.

Such perfect inelasticity doesn't exist elsewhere. Gold gets harder to unearth over time, but more supply does result from higher prices. Real estate too can have more land developed or buildings expanded upward. Only bitcoin has an absolute cap - 21 million coins ever - with pieces gradually lost forever.

This controlled decreasing inventory met with increasing demand causes Bitcoin's purchasing power to rise indefinitely. And that deflationary force strengthens during global crises as more people awaken to its potential for security.

This is why Bitcoin enthusiasts believe it will likely supplant real estate as the world's preferred store of value due to it's resistant to destruction, seizure, and devaluation.

Now, let’s get personal. Which asset do I believe is a better long term investment? Well, I put my money where my mouth is. I work for a large crypto company. About 70% of my net worth is still in real estate and 10% is in crypto (and growing). I’m heavy on real estate because I know it and I’ve seen what it can do. I recommend a balanced portfolio. Overtime, I believe digital assets will play a larger role in our lives. My investments in crypto are mostly in a self-directed IRA. It’s a long long long term investment. If you don’t have the stomach for the volatility, stick with what you know.

Bezos Snags Pair of South Florida Mega Mansions

Jeff Bezos just can't quit Miami's exclusive Indian Creek Island. After dropping $68 million on a waterfront mansion there last August, he snapped up the enormous property next door for $79 million two months later.

And the shopping spree may continue - his reps have approached at least three other homeowners there gauging interest. This "billionaire bunker" sheltered the likes of Ivanka Trump and Tom Brady behind its security gates. What draws Bezos in? Proximity to his rocket company's Florida operations, and the call of Miami itself.

This eight-figure Florida splurge, while massive, is a drop in the bucket for Bezos in real estate alone. He ranks among the nation's 25 biggest landowners with over 420,000 acres under his name.

In Beverly Hills, he set a California record with the $165 million Warner Estate purchase in 2020. The nine-acre compound was built in the 1930s for a Warner Bros. executive. In Seattle, he dropped nearly $190 million on two Hunts Point mansions plus six other properties over three years.

And in Manhattan, Bezos laid out $119 million for five combined units at 212 Fifth Avenue, including a glitzy three-story penthouse. He also owns a 27,000 square-foot former museum in Washington DC's ritzy Kalorama neighborhood.

For context, his estimated net worth sits around $197 billion. So shelling out nine-figures on luxury homes barely dents the Amazon founder's fortune.

In his November relocation announcement to Indian Creek, Bezos noted he'd lived in Seattle longer than anywhere else. And the Pacific Northwest still occupies a piece of his heart.

But the chance to be nearer to his parents and burgeoning space company ultimately drew him to Miami. Only time will tell if the move sparks Bezos to unload some of the estimated $190 million in Puget Sound-area property he's accumulated.

But don't feel too bad for the locals he's leaving. Reports say Seattle's median home price just hit a record $829,000. We're pretty sure struggling buyers there won't miss competing with Bezos in their market anymore.

🔥 Deal of the Day! 🔥

Address: 76 Earth Ship Way #EL, El Prado, NM 87529

This Earthship in Taos, New Mexico, epitomizes sustainable living, offering an eco-friendly retreat that merges self-sufficiency with modern comforts on 1.8 acres, complete with off-grid capabilities, active and passive solar power, and a year-round greenhouse, all while providing a strong rental income history and minimal environmental impact, nestled in a community that celebrates sustainability and artistry near the Taos Ski Valley for both relaxation and recreation.

Airdna data:

Estimated monthly payment: $3,161/month (if financed)

Estimated monthly revenue: $5,733/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

That's the scoop for today! Let me know if you'd like to chat more about investment opportunities. Have a great weekend!