Regret Buying 1br at Auction for $749k :(

dualcore on 09/12/2020 - 13:44

Hey everyone,

I feel a bit disgusted with myself. After several months of property searching and bargain hunting, and watching property prices increase and all those bargains disappear, I decided I'm going to buy a property no matter what by the end of this year.

I live in Sydney. I want a place close to work (in Surry Hills), and I own a car so I wanted parking. I have lived in the Alexandria area previously and really like the area, and think there's future investment property as Redfern becomes more gentrified. My other criteria is (1) low density; max 3 storeys, (2) no major building issues, and (3) <15min walk to Redfern station (which has the north shore line; which I take regularly).

There was only 1 (yes, one) 1/1/1 unit that met the above criteria in Alexandria. Everything else was either high density concrete boxes, had serious building issues, or were not the location I wanted.

This unit was beautiful. It's north-east facing, super light-filled, it's top floor, it was built in 2014 and is loaded with amenities like correctly-sized ducted air conditioning (kept it cool in a 40c day), and has a reasonably big balcony. The location is also good for me, because I can walk to redfern station in 13 minutes.

I went to auction, and I ended up paying $749k for the price. The other bidder was $746k. I am really regretting it because I'm really a bargain hunter at heart, and I feel disgusted for spending so much time to save $10 or whatnot, I ended up spending so much money for an (admittedly nice) 1br apartment. It is auction so I do not have a cooling off period and cannot back out.

I can afford it fine, but I just… feel bad. Has any OzBargainer spent more than they wanted to on property? How do you get over it?

Home & Garden

Comments

  • What is rrp on 09/12/2020 - 15:13
    +3

    I can afford it fine, but I just… feel bad

    feels bad man.jpg

  • MercSal on 09/12/2020 - 15:16
    +1

    Thats about the price in Inner sydney. Looks good to me!

  • Cluster on 09/12/2020 - 15:25
    +6

    Someone will buy it off you for well over a million in 5 years time. That's how Australian property works. The government (local and federal) will do everything to stop house prices ever falling.

    • Mistredo on 10/12/2020 - 10:36
      +2

      Where is ceiling to that? Prices cannot go forever, because people will not be able to afford it.

      • dualcore on 11/12/2020 - 00:36
        +1

        Inflation is one way.

      • Cusack on 11/12/2020 - 07:51
        +1

        That's exactly what I thought about 6 years ago. Then prices almost doubled

      • Stopback on 11/12/2020 - 09:58

        aus is a small nation, top 5 in the world for living, just think about all the mega rich people who will emigrate here in the future.

        In a nice area the demand is endless.

        • Mistredo on 11/12/2020 - 12:54

          The mega rich people will not be buying small apartments like this.

          • Ti-au on 11/12/2020 - 13:09

            @Mistredo: yeah, but they will pay bank for nice land, and that will affect this land.

  • Youfah Mizzum on 09/12/2020 - 15:33
    +2

    Looks pretty good OP.
    $749K seems a lot, but it meets all your criteria. Many of us buy various things from useless electronic stuff on gearbest we'll never use to overpriced cars and overpriced property.

    But this unit isn't falling down, it's not gonna cost a packet in renovations, it meets all your criteria, I can't see any problem with it.
    In a couple of years when it's worth $850k or $900k you'll be thinking "Lucky I got in back when it was $749k!"

    • monkeyfood on 09/12/2020 - 17:02
      +1

      going by that thinking it will be worth 2m in 10 years…

      • JTTheMan on 10/12/2020 - 11:01

        Yes and then they'll be wondering do I sell now or keep going using it as collateral for further investment?

    • JIMB0 on 09/12/2020 - 22:21
      +1

      Last owner paid $605k. It's only increased by 24% in 8 years.

      • Architectonic on 10/12/2020 - 15:05
        +2

        If you include all the fees, stamp duty, selling costs, $4k/year strata fees, the rate of return is barely above inflation.

        • dualcore on 10/12/2020 - 17:14

          but you also get rent…

  • holdenmg on 09/12/2020 - 17:00

    So, did you make a firm realistic offer prior to the Auction?

    • dualcore on 10/12/2020 - 17:14

      seller wasn't taking offers due to substantial interest.

  • drfuzzy on 09/12/2020 - 17:01
    +2

    In 2005 - I spent a similar amount to you on a 1 bedroom and although it wasn't the best investment it was a great lifestyle.
    In 2013 - I switched to 7 eleven coffee the day I spent $1.5m on a trashed dump of a house suitable only for demolition. Terrible for my lifestyle but a great investment.

    When I bought the land and was sipping my coffee, an old man comforted me by telling me to forget what I just paid - think about it again in 10 years.

  • lint on 09/12/2020 - 17:16
    +1

    • What was the maximum price you were prepared to pay for it going into the auction?
      If you didn't exceed it, then why regret it. You must've done your due diligence in research to come to a maximum price you think the place is worth.

    • What is the average selling price of similar units in the area right now?
      If it's close to what you paid, give or take, nothing to regret, you'd still be looking as the price keeps creeping up if you didn't make the buy.

    And the place suits your needs well from the sound of it. So for all intents and purposes, you got pretty much what you were looking for, at a reasonable market price by the looks of it (someone else bidding similar, unless they're off their rockers), and you'll likely make some money out of it if you decide to sell it in the future.

    I don't see the need to regret.

  • SydStrand on 09/12/2020 - 17:52
    +5

    Growing up, Alexandria was just lots of industrial parks. That so many high-rise apartments sprouted up there, much less people are willing to pay $700k for an apartment there still blows my mind.

  • DiscoJango on 09/12/2020 - 17:57
    +8

    Obvious humble brag is obvious.

  • Orico on 09/12/2020 - 18:14
    +3

    why do you muppets wanna live so close to the city? There's literally no advantage living in a dump like Alexandria. So dense and full of cars.

    • JTTheMan on 10/12/2020 - 10:58

      You've answered your own question, "so dense and full of cars". Have you heard of supply vs demand dictating price?

  • earth worm jim on 09/12/2020 - 18:35
    +1

    That's alot for a 1br even if it's dead centre in the city.

  • Willco88 on 09/12/2020 - 18:36
    +3

    Yea I don't get it the need to live in the actual city centre link take a 15min tram save 30% on housing cost?

  • Buyers Remorse on 09/12/2020 - 18:54

    PM your regrets, I understand.

  • nickxau on 09/12/2020 - 19:00
    +2

    It's just buyer's remorse. You'll get over it.

  • duluxe2000 on 09/12/2020 - 19:01
    +2

    Why do you feel bad about it? It's still 749K asset no matter what. Live in it and enjoy your life. If your life circumstance changes in a couple of years, you can always sell it (and it's likely still worth 749K) and move to somewhere else.

    This is normal feeling of first time buyer. First they fomo, then they feel a bit "regret" because the amount of money is too much or they think they "overpay" a property but the reality is that the number of people actually get a "bargain" is like 1/100th of the number of people who miss out and have to pay more in the future (because they wait for a "bargain").

    Alexandria is a nice area with lots of cafes and young people. People who save on housing cost will blow their money in other ways anyway, like expensive holidays, building a pool, purchase expensive cars so trips to work is enjoyable, etc…

    I think the main thing here is that you can afford it. Congrats on your first home :)

  • witsa on 09/12/2020 - 19:23
    +2

    How did you know which apartments had major building issues?

    • Zachary on 10/12/2020 - 16:26

      probably by reading?

    • dualcore on 10/12/2020 - 23:37

      Strata report + building inspector.

  • lainey13 on 09/12/2020 - 19:26

    This is a normal feeling. I paid 10k over in the auction, against myself, could have won with 1k over vendor bid but went 10k instead. I just tell myself it knocked out any other potential bidders and now I am really happy at winning the auction. You tell yourself how much light and great location your place has and your feeling will disappear over time. Just enjoy now being a property owner.

  • Duckie2hh on 09/12/2020 - 19:30
    +2

    You overpaid.

    • Ti-au on 11/12/2020 - 13:20

      tell him that in 10years when the property price is $1.5M

      • Duckie2hh on 11/12/2020 - 14:15
        +1

        It wont be. Not for a 1br apartment

  • StonedWizard on 09/12/2020 - 19:30
    +1

    OP - If the other places are around the same price, you could classify yourself as having a bargain. A bargain doesn’t always have to be cheap. It’s just something you buy at a good price.

    When it’s your own place, it’s good to buy something you like and want to live in.

    Rates are low and will only drop lower for the next few years. Prices in Sydney will hold or go up for good property.

  • morse on 09/12/2020 - 19:31

    Congrats on your purchase! Enjoy it.

  • acersaurus on 09/12/2020 - 19:53

    You're a bargain hunter but go easy on yourself, as it's just not easy to attain a bargain in Sydney.

    Take heart from the fact that the amount of interest you will be paying isn't that much if you get a rate around 2%

    Can't say you overpaid necessarily, as all apartments are different.

  • R4 on 09/12/2020 - 19:58
    +8

    $750k for a 1br apartment? F***!

    • Willco88 on 09/12/2020 - 20:09
      +4

      Yeah that's a mansion in Adelaide even a new townhouse if not an older 5bd home on half acre

      • R4 on 09/12/2020 - 23:16
        +5

        Cool. I've lived in Sydney - personally I can't see the attraction of the place, but obviously many like/tolerate it.

        Here's some basic truths:
        Sydney: avg. house price - $985720 avg. salary - $105828
        Perth: avg. house price - $461890 avg. salary - $106606

        Something doesn't compute right there.

        • greatlamp on 09/12/2020 - 23:29
          +1

          Plenty of free land around Perth I guess

        • Architectonic on 10/12/2020 - 15:08

          Yes, Perth's bubble popped and Sydney's bubble has yet to pop.

        • drfuzzy on 10/12/2020 - 21:49
          +1

          Sydney salary is somewhat stable; Perth is a mining town with people either making bank or down on their luck depending on the economic cycle.

          • R4 on 11/12/2020 - 01:40

            @drfuzzy: I'll partly agree but I work in mining, and even in the depths of the fallback our industry went through 4-5 years ago, I was making more than I could possibly make in boom time Sydney. And I'm not the only one.

            I think you'll find that the higher salaries in Perth have been that way for many years.

            Sydney is a hole too and I have/had no desire to live there.

    • Zachary on 10/12/2020 - 16:28
      +2

      yeah…OP flexing his 750k purchase…meanwhile us plebians scraping by and taking advantage of cashback and $1 sales…

  • scoobydoobydu on 09/12/2020 - 20:02
    +3

    Sydney is really now a tale of 2 markets. Property market if bifurcating between small units of high density mainly targeted at the rental market vs larger low density apartments, town homes and detached houses with a yard that people actually want to live in. The latter should hold up well while the former will struggle unless the immigration floodgates are re-opened in short order.

    • Ti-au on 11/12/2020 - 13:22

      Don't worry - the Government will re-open it.

  • GourmetFoodie on 09/12/2020 - 20:31

    Meh. There is no such thing as a “bargain“ in property in this day and age. The best you can hope for is fair value in the market of the day. If you ever rent it, a one bedder returns better than a two bedder plus it’s a great location in a good quality building. I’d say you achieved fair value.

  • ego22 on 09/12/2020 - 21:25
    +11

    Most people feel a bit weird after auctions.
    Because if you win, you are the only person who thinks it was worth that much..

    • muzzamo on 10/12/2020 - 10:18
      +6

      Well said. It basically means you were the strongest looser.

  • deviant on 09/12/2020 - 21:41
    +1

    buyers remorse. i think if it suited your lifestyle then it's fine and if you aren't going to upgrade anytime soon it shouldn't be a dealbreaker. capital gain probably minimal but you get to enjoy it.
    thought I overpaid when I bought my house for 1.6m. totally shit house, quite unliveable, gets hot in summer, too cold in winter. next to some loud neighbours. but it sits on land.
    now it's worth twice that. so i paid the price of amenities with a huge renovation job

  • AlanHB on 09/12/2020 - 22:16

    It all good dude, just enjoy the place and sell in a couple of years if you don't like it. In the meantime have fun, treat it as your own :)

  • funnysht on 09/12/2020 - 22:49

    tHINK Of it this way if you got it for 20k cheaper would you be over the moon?

    Then it is only 20k…so not point worrying about it for just 20k….

    • SF3 on 09/12/2020 - 22:51

      But OP could have bought loads of eneloops from OzB deals from the "savings".

  • wolffram on 09/12/2020 - 22:56

    What a silly billy you are…

  • SpaceNinja on 09/12/2020 - 23:19
    -1

    Trust me after a few years you will regret nothing; speaking from experience.

  • Mrgreenz on 09/12/2020 - 23:48
    +1

    "I went to auction, and I ended up paying $749k for the price. The other bidder was $746k. I am really regretting it because I'm really a bargain hunter at heart, and I feel disgusted for spending so much time to save $10 or whatnot, I ended up spending so much money for an (admittedly nice) 1br apartment."

    Can someone who understands this, re write it so I can understand it?

    • AlanHB on 10/12/2020 - 06:31
      +2

      Basically he's saying instead of getting the cheapest price for something, he was willing to pay the most of anyone there. An anti-bargain hunter in a way.

      But it's really just rationalising the buyers regret that comes with all home purchases.

  • redslert on 10/12/2020 - 01:03
    +4

    You've overpaid.
    Unless you never plan on getting married and start a family for the next 10-yrs then this would be a mistake.
    For 1-bedrooms/studios you are always better off renting for the flexibility of life changes.

  • Gelato on 10/12/2020 - 01:24

    With your criteria of the property plus your preference on the location, I think you have got a good price. Not many properties in the preferred area will tick those boxes.

    If you’re sad about paying 3k more than the second highest bid, is a really small % compared to what you’re buying… maybe refinance after a while if banks still offer cashback? Eventually you’ll get your money back lol

  • imurgod on 10/12/2020 - 06:34

    Don't feel bad. That's the going rate sometimes.

    I looked at two 1br units in potts point and they were going for $1.1m.

  • serpserpserp on 10/12/2020 - 06:52
    +1

    At this price on a 90% LVR the minimum weekly repayments gotta be ~$600 a week. That is pretty hefty for one person!

    • mini2 on 10/12/2020 - 08:27
      +1

      Rent wouldn't be too far off either.

  • earth worm jim on 10/12/2020 - 09:17
    +3

    Appartments appreciate in value at a much slower rate than land. The last decade has seen crazy price rises for properties and most economists think the post covid era wont be as forgiving. The question is would anyone be willing to buy a 10-15 yo 1br apartment for 800-900 k in the next 10 years in alexandria. I would say its unlikely but who knows where the market goes.

  • Staff on 10/12/2020 - 09:32
    +1

    I can buy it off you for 500k if you'd like. Spare you the regret. Money heals the pain.

  • MontyMacaw on 10/12/2020 - 09:53
    +2

    Get over yourself. You went shopping and bought basically what you wanted. Buyers remorse is a temporary thing unless you get obsessed with it. Enjoy the benefits and count your blessings that you are not somebody worse off who couldn’t even rent a place like that.

  • OzHunterNSW on 10/12/2020 - 10:06
    +2

    You just have buyer's remorse.
    Jot down all the positives. North facing, you said, so there is a positive.
    Think positive, otherwise you will manifest a negative mindset each time you return home. This then could affect your health and wellbeing, and in turn, could lead to an early death.

  • sauce2k on 10/12/2020 - 10:20
    +1

    I bought a 2bd 2bath 2 parking (128sqm) for $865k…I regret the purchase because I didn't realise the strata was so damn high.

    It was my first time purchasing a property, an expensive lesson

    • dualcore on 10/12/2020 - 23:39

      How much is strata?

    • techlead on 10/12/2020 - 23:44

      Unfortunately most property investors/purchasers don't do their research, they rush in and not do their due diligence. Its a very expensive lesson.

  • f38r1 on 10/12/2020 - 10:30
    +1

    @dualcore
    Hello neighbour…
    https://www.domain.com.au/302-123-129-wyndham-street-alexand…

    • shruglord on 10/12/2020 - 10:55
      +4

      Holy crap. 3 quarters of a million dollars and you don't even get a study nook. Hate to be WFH.

    • f38r1 on 10/12/2020 - 12:12
      +9

      Thanks OP to push the price in this area through the roof.
      Your purchase price will be picked up by CoreLogic algorithm and push the value of surrounding properties.
      I owe you a lunch.

      BTW, you DEFINITELY overpaid :D

    • RADICALIST on 10/12/2020 - 15:28
      +2

      What an absolute shoe box.

    • drfuzzy on 12/12/2020 - 19:36
      +1

      Am I the only property developer commenting here?
      I don't think OP overpaid at $9k per square metre.
      The cost of construction would have been $4k or more per sq metre plus the cost of land, architecture, engineering, soft costs, GST, holding costs, permits, etc etc.
      Many here would be shocked by the cost of construction in 2020 and especially the cost of constructing apartments vs a freestanding home.
      The price reflected the demand and when it is time to sell there is likely to be strong demand for the same reasons.

      • BartholemewH on 13/12/2020 - 04:23

        You're right re: being shocked. From what you're saying, the price to construct an apartment exceeds 36k per builders square? FMD.

  • garetz on 10/12/2020 - 10:36
    +1

    Looks like a good buy to me. Buyer's remorse is a real thing, you'll get over it soon enough.

  • d86 on 10/12/2020 - 10:41
    +1

    I believe that's the apartment the OP is talking about https://www.realestate.com.au/sold/property-apartment-nsw-al…
    You've definitely overpaid, there's a dual level apartment for less.
    I also did make a similar mistake by buying an OTP 1br in Waitara in 2015, overpaid 50k.

    • Zachary on 10/12/2020 - 17:13

      Well it does look nice and clean…..but I'm shocked that something this nice looking cost $750k…..

    • kgree92 on 11/12/2020 - 11:28

      currently living in the area. which building did you buy lol?

      • d86 on 11/12/2020 - 11:44

        42-44 Park Ave

        • kgree92 on 11/12/2020 - 13:05

          How much did you pay for 1 bedder?

          • d86 on 11/12/2020 - 13:33

            @kgree92: 520k

            • kgree92 on 11/12/2020 - 14:12

              @d86: Ah that apartment block. Thought 520k is reasonable. Did it drop to 470k after all units were finished? Btw how much is your strata?

    • Hangryuman on 11/12/2020 - 18:41
      +1

      looks pretty nice to me

      top floor - private sunbaking on the solid-walled balcony

      N/E balcony - beautiful for morning sun and winter mornings

      N windows in living and bedroom - perfect for delightful warm winter sun coming in

      no W exposure - so no overheated summer afternoons (subject to roof insulation)

      so enjoy living there if that's your plan

      financially - the last owner wouldn't be impressed with their capital gain - from $605K Oct 2012 to $749K Dec 2020 looks like 2.7%pa cumulative capital growth over 8 years - maybe worse than inflation ! - in other words they might have LOST MONEY on their investment - https://www.realestate.com.au/property/unit-302-123-129-wynd…

      you paid $749K last week ? There a shipload of empty units at the mo' - mid-COVID an agent told me a CBD high-rise 2/1/1 unit was worth $650K - one online site suggests that might be worth $900K now - dunno who's buying (oh that's right … You ! ;-) - a couple for sale have dropped their asking from $950K to $875K - still waiting for buyers …

      a 2/1/1 unit strolling distance to the CBD recently sold for $750K - but it's not shiny new like yours - oh by the way - how the flammable cladding situation there … ?

      downsides of that unit - Traffic noise ? looks like main drag Wyndham St from the Princes Hwy avoiding King St Newtown is just under your balcony - 3rd floor you shouldn't inhale too much pollution touch wood. Check your balcony drain regularly so heavy rain doesn't fill up your balcony to overflow onto and ruin your lovely (if non-hybrid 100% waterproof) hard flooring.

      Even if it is waterproof flooring I'm not sure you wouldn't end up ripping it up after a flooding event due to mould issues (you can tell I love hard flooring) - I just got a quote for flooring a 2 bedroom rental unit - $3890 for hybrid (not sure about sound damping underlay) compared to $1800 for rental quality carpet - last time I saw carpet flooded they just used vacuums and blowers and it was OK.

      So yeah - if you don't mind sitting in peak-hour traffic on Wyndham St or can avoid it somehow, and aren't sensitive to traffic noise, then sitting on that balcony looks like a blissful place to be in winter, as should be the living and bedrooms midday in winter.

      So enjoy - buyers remorse is normal - it's only money honey - and in the end we're all dead - so focus on enjoying the future ! Only time and eventual resale will tell whether your investment was better than a smack in the mouth with a wet fish … so don' worry about it !

  • JTTheMan on 10/12/2020 - 10:49

    Without reading all the above comments and after reading your description of your purchase I think you've made a good decision.
    You get what you pay for and if it ticks all your boxes it will also meet multiple other people's criteria if you need to sell.
    You will never lose in the long run.
    You can't treat long term investments the same way you treat short term bargains like we do here. They are completely different markets and you can't compare them so don't feel bad.

  • D A Y on 10/12/2020 - 10:50
    +1

    You are all good ! Same with me, back in 2010 bought "Overpriced" 2br apartments at St Peters for $350k, everyone said that I am crazy, your property will depreciate, market crash, the stupidest decision I ever made, and I WILL REGRET IT for the rest of my life. guess what ? did not regret buying property and just have to shut down the nay sayers.

    • JTTheMan on 10/12/2020 - 11:03

      The secret to success in many ways is to shut down the nay sayers!

      • Hangryuman on 11/12/2020 - 18:59
        +1

        the best revenge on the nay sayers is success

        the standard Australian way to wealth is to buy geared property

        where an 80% loan allows your equity to grow at 5x the rate of the property increase

        of course - no-one can predict the future

        I did not predict - what last year was a world full of dodgy foreign visa students running illegally sublet overcrowding short-term letting places to maximise rents for in-demand locations

        is now a world full of empty units with sighing owners dropping the asking rents repeatedly, then after failing to attract anyone to an older unit, deciding to renovate in order to improve their chances of attracting AnyOne - then again having to drop rents again below what they thought - again to attract AnyOne

        in other news - a retired friend is struggling financially because they never bought a home - and I understand the huge difference in retirement financial comfort is between those with a paid-off home and those who are still renting (financially precarious in old age/on a pension)

        so yeah - buy a home - the sooner the better - and in the future you get to feel sorry for those who didn't …

    • CyberMurning on 10/12/2020 - 11:27

      same here like many years back a friend bought $950k 2 bedroom apartment off the plan in chatswood sydney
      everyone said crazy,
      a month before settlement someone offered $1.2m already now dont know how much

    • techlead on 10/12/2020 - 17:51
      -5

      Put it this way, your deposit was $350k x 0.2 = $70k, right?

      Let's take 5% of that, $3500 and let's say you bought Bitcoin in 2010 instead of your apartment. Bitcoin was 0.125USD in Oct 2010, the AUD/USD back then was around parity, so let's say its at 1to1, so for your $3500, you could have bought 28000 BTC.

      Today, those 28000 BTC would be worth around $512.4 million USD or $689.4 million AUD. That's assuming you only spent 5% of your deposit on Bitcoin, just $3500.

      How much is your apartment worth now? Let's say $2 mil for a 2 bedder at St Peters? Would you rather have $2 mil (minus costs) or $689.4 mil?

      So yea, you SHOULD regret that for the rest of your life haha. I do, I only started buying Bitcoin in 2013 even though I have been tracking it since it came out in 2009. I will regret that for the rest of my life.

      You need to consider the opportunity cost too. Yes, could have made X profit but could you have made X + Y profit elsewhere with Y being a positive non-zero number.

      • D A Y on 10/12/2020 - 18:33
        +2

        You can substitute bitcoin with anything, you are talking about historical. I should have bought x shares back in the dd.mm.yyyy and sold it at this amount at later date and make all the gains or I should have pick this number instead of that number for the lotto so i can win $ x m…

        It is easy to say now, back in 2010 you should invest $3500 worth of bitcoin, but if you actually in 2010, how hard to get information about bitcoin, how to mine, where to buy, not as easy as now.

        I never regret any of my position, everyone always comes to me say.. you should have invest in this, you should have invest in that, you are wrong, if you bought this you can be billionaire. i probably have to lost my monies 400 times before 1 or 2 that might return profit.

        • techlead on 10/12/2020 - 19:20

          Exactly, the point is to highlight he didn't make a good choice with his money lol.

          That was exactly why I didn't buy Bitcoin in 2010, I didn't know enough about it, until 2013.

      • May4th on 10/12/2020 - 19:09
        +1

        buying bitcoin in 2010 is not investing. that's like saying "if you spent $30 on lottery ticket you could have won $50mil do you regret buying the house now"

        looking at the property, it's a good location with good layout and aspect. as long as the building quality is ok and strata report didn't have any nasties then it's a safe investment. you definitely could have done worse and property prices aren't going to dive any time soon with the amount of lifelines in place. just enjoy the place OP it's classic buyer's remorse and you'll get over it once you move in. congrats on the purchase.

        • techlead on 10/12/2020 - 19:19
          +1

          Lmao, how is buying Bitcoin in 2010 the same as buying lottery tickets? Would buying shares be like that too?

          And plus $3500 worth of Bitcoins in 2010 is more than $50 mil now. So it's better returns than a lottery with much less risk.

          • May4th on 10/12/2020 - 19:25
            +1

            @techlead: if you are buying penny stocks, absolutely. if you are buying ETFs/blue chips that's a completely different kettle of fish. i could have bought biotech stocks that went up 20x over the last 8hrs that outperformed any crypto. investment is about long term horizon and risk vs reward. let's not pretend bitcoin and alt coins are the only vehicle of investment worthwhile out there. yes you've done well and so have a lot of others lucky enough to ride the wave but you need to realise the risk profile is not for everyone.

            yes there is an opportunity cost - you could have made a lot more money buying btc. but you could also have lost it all. it's always easy to look back in hindsight. hence my lotto analogy.

            • techlead on 10/12/2020 - 20:06

              @May4th: Fair point about risk and reward, but the analogy with lotto is not quite right.

              Too many people don't take risk into account, they think property is a sure thing, when it's clearly not and it has its risks which few understands. Property prices at the moment are not supported by fundamentals.

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