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Betting on BitCoin or Real Equity?

The question is, which is a better investment? Who knows? Which is exactly the problem, and might, in fact, be the answer as well. The potential prospect or pitfall of speculative Bitcoin investment is too unknowable. By all accounts, it’s too early to tell.

And while the fantasy of Bitcoin investment is all about getting rich overnight, which isn’t certain, one thing is for sure: It’s not about getting a good night’s sleep. At this point in time, the anxiety involved is by nature the kind that should keep you up at night, quite literally, with nervous doubts and uneasy questions, such as, “Should I sell?”, or worse, “Should I have sold?!” The questions are uneasy because the answers aren’t easy either.

And while at the moment, the idea of BitCoin speculation is all the rage and mania, it may well turn out to a source of extreme anger and frustration. Here’s why.

In an article published January 11, 2018 in London’s Daily Express, economic trend expert Byron Wien, former Chief Senior U.S. Investment Strategist at Morgan Stanley, said BitCoin investment strategy is, “Maybe affecting some speculative interests on the part of equity investors, but Bitcoin, I think, is a magnet for speculators and people who are willing to take very high risks for very high gains.”

“But it also has very high chances of losing money.”

What’s more: Wien predicted that Bitcoin was likely to be subject to value readjustment in the coming months, and, what’s more: that since the risks in Bitcoin are so great, “regulatory authorities could possibly restrict trading. Among their concerns are: no regulatory oversight; no safety and soundness measures; no recourse in the event of mistaken or miscalculated transactions; high cyber risk; no deposit insurance.” (Risk source: Morgan Stanley.)

The fact that some 18% of those who speculate in BitCoin investment are reported to actually borrow money to put into their investment gamble, might indicate the degree of inherent unprofessionalism of some of its investors. That is unusual in stock market investment. That of itself should raise eyebrows, though perhaps it might not indicate raised steady returns.

What about the prospects for investing in solid stable real estate investment in Israel? The answer is that prospects are good; quite good, actually.

Here the picture is more sanguine in its way. Yes, there are ups and downs by nature, yet on the other hand, you don’t have to frantically check on your results every day (and be up every night). Things are long-term and stable. You don’t have to stay up because generally in the long term and less, things are continually going up and moving on up. And what’s more: buildings are going up in Israel, and for many good reasons. Given that climate, in the long run you’ll always see steady growth and return because of the fact that in Israel things are growing. With proper demand and a population that is growing and is looking for apartments, it’s a mature investment. That is because life here in Israel is growing and thriving more than ever before. This is what makes for good and healthy investment possibilities of the most stable kind. And here’s why.

Statistics show that most people in Israel who buy and own their homes here do it to live in them, not for purposes of wild market speculation. They want and need a home or apartment because they want to live here. That’s why the market is so strong. And, that’s why the price of apartments is going up and for solidly good healthy reasons.

And to again compare and contrast the real estate market in Israel with Bit Coin speculation, here things are very different, and by definition. Unlike some of the worst aspects of BitCoin speculation, anytime you want to invest in buying a home or apartment, you really have to invest using your own money, your own cash assets, and not money that’s borrowed, frenzied or otherwise, for that purpose, since only so much funding is supplied by the banks. You’re on your own because you are serious, not speculative.

And in fact, that being true, what’s a very good indication of that kind of stability, especially here, is the fact that it’s extremely rare in Israel, to hear of foreclosures of homes or apartment where properties end up having to be sold by the bank.

That’s because investment of this type is serious and responsible, not frivolous. People are buying homes for the long haul; they’re looking for residences, not risks. So while a lot of BitCoin investment mania is known to be driven by anxiety and fears of missing out, it’s pretty clear that such craziness is not what’s fueling the excitement of Israel real estate investing. Recent surveys show that the vast overwhelming majority of people who own homes or apartments in Israel are just that: homeowners, not speculators. Most people own their homes in Israel because they need to, and want to, live in them. In fact: recent statistics show that no more than a mere nine percent of Israelis own more than one home or apartment: There really aren’t that many in the market who bought their apartments for investments. People simply live in and love their own homes here, and for good reason. And that is what strongly indicates how in the long run, it’s a long-term solid investment in your finances, as well as of course without even mentioning, investing in Israel’s solid future.

The reality is that now is a good time to buy real estate in Israel. And for a wide variety of good reasons, it’s always a good time to buy real estate in Israel, even when, and especially when, it’s a buyer’s market.

In this kind of special and meaningful investment, you don’t have to wait for the market to peak to avoid falling into an abyss. You’ll be able to sleep better at night, resting assured that you’re investing in a dream, and not what could unfortunately turn out to be a disappointing nightmare. A dream investment is better.

For more information and to schedule an appointment for Mr. Getter’s upcoming visit, which will be between February 8 and February 15, call Sarah at 077-234-6011 ext 208 or email [email protected].

This article is intended to provide general information about the subject matter covered. It is not meant to provide legal opinions, offer advice, or serve as a substitute for advice by licensed, legal professionals. The author does not warrant that the information is complete or accurate, and does not assume and hereby disclaims any liability to any person for any loss or damage caused by errors, inaccuracies or omissions, or usage of this article.

By Shia Getter

 Shia Getter is the CEO of the Shia Getter Group, a full-range real estate services firm in Jerusalem catering to the Anglo-Charedi Community. He is a noted expert, columnist, and author of Everything You Need to Know about Buying Real Estate in Israel (Feldheim 2014). He and his professional team are Israel’s one and only true buyer’s broker.


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