discuss Real estate investment VS Domain investment

[BrandAptly.com]

I have some property (land) I purchased for retirement that I am seriously considering liquidating and reinvesting in some good domains for the long term. The annual taxes on the land is substantial, while the appreciation rate is low. If I invest in premium domains, the annual maintenance cost will be significantly lower. I imagine that the appreciation rate on premium domains is much higher.

What are you thoughts?

 

[manpreet]

I have some property (land) I purchased for retirement that I am seriously considering liquidating and reinvesting in some good domains for the long term. The annual taxes on the land is substantial, while the appreciation rate is low. If I invest in premium domains, the annual maintenance cost will be significantly lower. I imagine that the appreciation rate on premium domains is much higher.

What are you thoughts?

Buy Land, they're not making it anymore. - Mark Twain

Buy Domains, from the money you make from your Land. - Manpreet Singh

 

[bmugford]

Real estate has far more tangible and liquid value.
Sure, the holding costs (property tax) are going to be far higher on average.

If you know what you are doing, investing in high quality domains is a great option.
If you don't know what you are doing it is a great way to have almost unlimited losses.

Can domains be a good option? Yes.
Are they a good option? Maybe...

Brad

 

[BrandAptly.com]

Buy Land, they're not making it anymore. - Mark Twain

Buy Domains, from the money you make from your Land. - Manpreet Singh

While Mark Twain was a sage of his time, he lived long before the interwebz. I can say with a certain level of confidence that (given what we know now), if he had to choose between investing in land.com and a plot of land, he very likely would opt for the former.

With that reasoning out of the way, I can see some wisdom in Manpreet Singh's position (assuming that the land is actually generating revenue). Domaining is a relatively new concept and a more complex asset to will down.

A good domain can easily generate enough revenue to cover maintenance cost. It can be leased, redirect to an affiliate program and a variety of other methods.

Land on the other hand requires substantial capital to develop. Even if you go the leasing route, you're somewhat 'stuck' with your tenants, since you can't easily discard the infrastructure that was constructed at lease-end.

Once again, I'm arguing with myself.

 

[Sutruk]

Buy Land, they're not making it anymore. - Mark Twain

Buy Domains, from the money you make from your Land. - Manpreet Singh

If you know what you are doing, investing in high quality domains is a great option.
If you don't know what you are doing it is a great way to have almost unlimited losses.

Listen to what the above members have already told you, great advices.
And the Manpreet quote tells you the way to go... in order to not lose your retirement properties.

 

[xynames]

The type of land you’re describing doesn’t sound premium so unless we know more about where it is we can’t advise you intelligently.

 

[bmugford]

The type of land you’re describing doesn’t sound premium so unless we know more about where it is we can’t advise you intelligently.

Yeah, I would rather own good domains than bad real estate.

Both investments have their upsides and downsides.

Brad

 

[BrandAptly.com]

The type of land you’re describing doesn’t sound premium so unless we know more about where it is we can’t advise you intelligently.

You're right, it's not premium land. I wouldn't consider trading in premium land in favor of domain investment. The original plan was to hold it for at least 20 years. Development is heading in that direction, but I estimate it would be about 15 years plus before it becomes premium. It's probably appreciated by about 3% over the last 5 years. it's a measly 10 acres of crappy land.

In another development, there's a domain name fashionvault.com I owned briefly around 2008/2009. I dropped it after one year or so. About 10 years later, I see it listed for $99k. It would have cost me $200 max to keep that domain for 10 years. Assuming that the current sale price is purely speculative and it's really worth half the price, where can I invest $200 in land and make a $40k ROI in 10 years? There are a number of domain names I dropped that are now astronomically priced.

 

[Sutruk]

In another development, there's a domain name fashionvault.com I owned briefly around 2008/2009. I dropped it after one year or so. About 10 years later, I see it listed for $99k. It would have cost me $200 max to keep that domain for 10 years. Assuming that the current sale price is purely speculative and it's really worth half the price, where can I invest $200 in land and make a $40k ROI in 10 years? There are a number of domain names I dropped that are now astronomically priced.

That $99k is the listed price. Maybe it will be sold tomorrow for that price, or maybe it will NEVER be sold for that price. And even saying that "it's really worth half price" is too much to asume, until the domain is effectively sold for that price.

If you think that you lost $40k because you dropped that name, in my opinion you are a bit wrong, because for the moment, that domain hasn't been sold, for $99k nor for $40k.

I would not invest too much money on domains, until you really are into domaining for some time and know what you are doing.

 

[bmugford]

In another development, there's a domain name fashionvault.com I owned briefly around 2008/2009. I dropped it after one year or so. About 10 years later, I see it listed for $99k. It would have cost me $200 max to keep that domain for 10 years. Assuming that the current sale price is purely speculative and it's really worth half the price, where can I invest $200 in land and make a $40k ROI in 10 years? There are a number of domain names I dropped that are now astronomically priced.

There are lots of silly asking prices. The odds of that domain ever selling for a fraction of that price are remote.

You have to account for all the domains that don't sell in a year, not just the ones that do.

Brad

 

[BrandCollectors.com]

.

 

[BrandAptly.com]

This guy really has me rethinking my investment strategy. He seems to be on to something.

 

[RapidNames.com]

Diversify your investments is the best choice..

Owning domain also having risks like domain stolen, UDRP etc.,

Don't Put All your Eggs in One Basket

 

[urlurl]

get 3-5 years of domain experience before you make any major purchases.

its the same with investing in artwork or rare wines, know the industry before you get into it

 

[frank-germany]

I have some property (land) I purchased for retirement that I am seriously considering liquidating and reinvesting in some good domains for the long term. The annual taxes on the land is substantial, while the appreciation rate is low. If I invest in premium domains, the annual maintenance cost will be significantly lower. I imagine that the appreciation rate on premium domains is much higher.

What are you thoughts?

buy bitcoins below $8K

 

[Windoms]

A $15.000.000 downtown building that's rented for $50.000 per month.
Or a $15.000.000 portfolio of 1500 very high quality domains acquired for $10.000 each.

I'd take the building first.
Then deal with domains.
Even if I already know how to buy and sell domain names.

 

[BrandAptly.com]

buy bitcoins below $8K

I'm ashamed to say I know nothing about bitcoins. The first thing that comes to mind when I hear 'bitcoins' is the documentary I watched on silk roads.

A $15.000.000 downtown building that's rented for $50.000 per month.
Or a $15.000.000 portfolio of 1500 very high quality domains acquired for $10.000 each.

I'd take the building first.
Then deal with domains.
Even if I already know how to buy and sell domain names.

Would you say the same if you had amazon.com and facebook.com in your portfolio?

 

[wallet2it]

Buy lands and houses first period! When you have lands and houses, then buy domains please

 

[Josytal]

Don't joke with your nest egg!
If you must invest in domains, find other means.

P.S.
And don't forget to answer the poignant question:
What happens to your domains when you die?

 

[ksusha64]

Buy domains for newbies is insane vs realestate.
1. Realestate- tax shelter, can live in, can rent out, automatically goes up in value. LIQUID, Safe investment. Anyone can do with common sense. Buy good neighborhood etc. Sleep like a baby
2. Domains. Can be stolen, Can be taken by UDRP In in court, Can't rent, no real liquidity, Sometimes go down in value ( nets, emds, chinese boom etc) Do not go in value unless real valuable. Can go down in value ! No cash flow. Have to renew or lose it. Cant sleep at night