discuss My Thoughts on Domaining and Real Estate... Comparison

[briguy]

Hey there! Been thinking lately about the similarities of investing (buying/selling) domains and real estate! So on that note, here is my non-expert thoughts..

Real estate is basically property comprised of land and the buildings
Domains (complicate defintion ( https://en.wikipedia.org/wiki/Domain_name )
briguy's definition, "a piece of the internet that you lease.."

Domaining is basically the business of making money with internet domain names.
Real Estate is basically the business of making money with realestate.

Real Estate (1) When building a new Subdivision. Promote heavily to encourage a buyer market
Domains (1)New Extensions. Promote heavily to encourage a buyer market.

Real Estate Flipping (1) Buy Low, add value and try to sell as soon as possible for a profit.
Domains Flipping (1) Buy Low, add value and try to sell as soon as possible for a profit.

Real Estate Location (1) Neighbor/neighbourhood versus another..Some locations are better than others, think Monopoly board.
Classic Example using London England.

via http://www.cityam.com/251080/heres-monopoly-board-2016-looks-like

Domains regarding "Location" (1) Extensions..Some locations are better than others, think (dot)com versus (dot)tk.

Just a few of my thoughts about the camparison!

Sure would like to read yours..

 

[briguy]

Working on "brokers". Anyone want to pitch in...Kinda slow till the caffeine kicks in..

 

[biggie]

when doing comps for RE, the most recent home sales within that area are used

but some domainers will go back 10 years or more, trying to show how their name has comparable value.




imo...

 

[Kate]

Domain names are halfway between real estate (building land) and stocks (virtual assets), but without the liquidity.

 

[Keral_Patel]

Just some more ideas and angles.

I found myself into real estate unknowingly when I purchased my 1st offices and then invested some money into some houses (Which I planned to move into but never moved into)

For me buying into real estate and flipping it shortly is not a good strategy.

First and foremost I do prefer to pay a premium price for a premium location. Even if it means paying 1.5 times the market value.

Once that is done. I do some upgrades and rent it out. That's it. I am done with this property for next 5 or 10 years.

It has been 7 years now. Since I started this and returns have been amazing.

The reason I say about forgetting is that you can focus on other jobs that would help you to maintain your lifestyle and pay for the expenses. Once you do that and come back after some years to look at your real estate valuations. They will surely be way beyond your imagination. (If you reinvest your rents as installments to buy another real estate then great. I didn't do that because I hated loans but maybe someday I will try it out.)

Thanks.