Hive Account as Rent Yielding Real Estate
I can't afford to buy another house to rent it out, but I love to collect rent, what can I do?
Recently I wrote about my 10K HP and how I see it as a rent-yielding property investment.
About a week had passed, and I saw some yields. That piqued my interest to see how it might turn out, and whether my analogy of Hive Account as Rent Yielding Real Estate makes sense.
My HP accumulated at the moment is 10021 HP. By my estimation, I can aim for 100 HP per 4 weeks, given that I should be easily reaching 25 HP in accumulation per week.
12 months x 100 HP would give me 1200.
1200 / 10000 is a 12% yield per year in Hive counts.
Of course this is not entirely passive income as I have to write posts, and curate to get the yield. But hey, I am taking it as effort I need to put in for tending the grass to make my house nice! Even better if I take it that I enjoy the gardening tasks. Working on Hive is no work.
In this case, 12% yield is great. Better than rental yield of a physical property in where I live.
Looking at the chart below, we know we are in a bear market. So there could be capital appreciation, so to speak.
Laying these facts down, do you think my Hive Account as Rent Yielding Real Estate strategy is a reasonable one?
P/S: This is not financial advice, and please do your own due diligence before investing.
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Weighing the two options, the two of them are good but to me, it's still better to go physical than lying it here✋
You have a point there. thanks. !PIZZA
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That yield number sounds about right. You also have the possibility of price appreciation. Or ya know, depr... I don't even wanna think about it 😲 😛
HBD yields 20% as you know, and its very stable for many many months. So we have our options in this neighborhood! 😃👍
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True that, why didn’t I mention HBD ‘s 20%! !PIZZA
Crossing different asset classes to determine the best course of action becomes quite difficult, though I like your analogy. I tend to start with a goal and then try to match the strategy that best achieves the goal. In your case,
I think your goal is immediate return with highest possible speculative return, with a limited cash/fiat outlay. The curation and author rewards are the immediate return, all though not passive, and the chance that Hive moons is the speculative investment. I took a more traditional approach with a focus on rental property without any speculative return as an early investment.
Like you mentioned, I cut the grass and did all of the property maintenance. Real estate/rental property has two advantages that I don't think Hive has: LEVERAGE & DEPRECIATION. You can have a small cash outlay and then borrow the rest to purchase the rental property. Of course, property knowledge is paramount since you must be able to earn more in rent than interest, taxes, insurance and maintenance. The Depreciation is very beneficial in offsetting the profit and other earned income on taxes.
I think the best thing that you are doing is studying before entering into an investment. Your knowledge that you share has been very beneficial for me as I plan my crypto investments. Also, I will say, Crypto investing is much more interesting and fun than real estate rental property. I never liked those midnight move outs; clogged drains; and torn up interiors that came with rentals.
I am glad my ranting is of use. :)
I agree that crypto and esp things we do in hive is quite unique and offers conventional opportunities.
I see it as a business environment that is less clunky than the real world. And that has advantages. I just need to figure out the rules and shortcuts.
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Collecting rent is always great, the way this world is going, it's getting hard to earn money and the money you earn isn't sufficient to fulfill your needs.
Exactly! I think generating passive income is no longer a luxury but a need.
At present many people are working in Pakistan in such a way that they do it and rent it out and go and fetch it every month. I think this is a good business, it would make a person earn money every month. But the fun of investing money in crypto is probably not in it either. If a person has good luck, a person can earn huge profits from crypto.
Interesting!
But a business like Hive is an international business! Should have potentially more upside. Sadly it also has international scammers.
Your are absolutely right. Online work carries a high risk of being scammed but hive is trusted and strong project. People are not investing in this time market because of Luna and FTX crash.
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12% in hive, 20% in hbd, Also there is some hive engine tokens we can count too,
im mainly into splinterlands rent cards there 25-35% yearly, so yea hive ecosystem is good for renting>:D
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12% is a truly monstrous percentage if we relate it to the financial markets for example; I really like your strategy, seeing your Hive like renting a house is useful for visualizing investment, costs and benefits.
Surely some sacrifices have to be made, you have to publish obviously but, in the end, if we think of a house as you say, maintenance should still be done, the garden taken care of, the tenants followed up... in short, it wouldn't be a totally passive income anyway, right?
Nice post!
Hhehehe… just taking it as a game play here! !PIZZA
What I can say is...
I am in for the great interest too! 🤣
I loved how that meme had such double meaning in the context of the discussion! Hahaha
I like the comparison, but it isn't completely the same and I think it's still safer to put your money in "real" real estate... But yet reasonable... !LOL
12% yield is definitely great, but consider we could get 20% for HBD savings....
BUT like you said, being in a Bear market, it'smore likely Hie would go up, so HP will be worth more in the future. At least that is what we, Hivers, believe in. We'll see what the future brings.
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The massive upside is indeed the one we are gunning for.
Then I can go hunt for the "real" real estate! 🤣
I'm not sure we will be able to buy real estate from our Hive savings, but it's a start...