The divisive cryptocurrency Bitcoin hit a new record Australian dollar high this week, with one token equating to AU $175,000, meaning savvy investors could turn their cyber-currency gains into bricks and mortar.
With the new bitcoin value on par with the price of a small house, unit or block of land in some parts of the country, now could be the time to forgo the volatile currency and invest in property.
AMP head of investment strategy and chief economist Shane Oliver said since Bitcoin emerged on the scene in 2009, its rise has been somewhat of a slow burn.
“Bitcoin is relatively new, and its cyberspace so there's a lot more uncertainties about it and there is more of a hurdle for people to become familiar with it,” he said.
3D illustration of Bitcoin coins, symbolizing the first and biggest cryptocurrency
“Bitcoin sort of goes in waves. It was seen as a bit of a side show and then then it seems to have pushed along every four years, or every few years, and then it gets a bit of a pullback.
“The last time it had a bit of a slump was in 2022 … so every time it sort of pushes along, it goes to a record high and it generates a new round of popularity.”
While there was limited real data on how many Australians own cryptocurrency, Mr Oliver said surveys have claimed that increasing portions of people now have it.
While Mr Oliver said Bitcoin was sort of moving from the fringe to the mainstream to some degree, it was speculative in the sense the timing had to be right, with investing in property more a “stable bet” over time.
“If you line them up, Bitcoin looks like it's hanging on a particular role as a store of value. It's just different, property as an investment provides rental income for a yield, and that helps you to assess the value of that property,” he said.
“We've got a shortage of housing in Australia, and population is growing. We struggle to keep up with demand and we'll see ongoing capital growth over years ahead so you can see where it all fits in.
“But history tells us that, yes, there may be corrections in the property market but they're typically 10% maybe, and if you're really unlucky they could be 20% but normally, pullbacks are quite mild.
“Whereas, if you contrast that with Bitcoin, Bitcoin will probably generate stronger capital growth over time as an investment than property will, but it will come with more volatility.
“So you can argue there could be a role for both investors’ portfolio, but it depends on what you want. But if you're more digitally familiar, then you might like go down the Bitcoin path.”
For investors preferring less unpredictability as an investment option, here is a selection of property buys around the country currently seeking new owners for the same price or less as a Bitcoin.
Victoria
Regional land
For $115,000, this 670sqm parcel of land in south west Victoria could be the site of your dream home build.
This 670sqm parcel of land in south west Victoria is on the market for $115,000. Picture: realestate.com.au/buy
Located within the end of the street, 18 Donegal Court, Portland is part of a family friendly area, close to schools, shops and other amenities.
Apartment living
Or if something located closer to the Melbourne CBD is more appealing, a one bedroom apartment at 53/5 Archibald Street, Box Hill, is set for auction later this month, with a price guide of $120,000 to $132,000.
This one bedroom apartment at 53/5 Archibald Street, Box Hill, is set for auction later this month, with a price guide of $120,000 to $132,000. Picture: realestate.com.au/buy
Described in its listing as “ideal for first homebuyers, downsizers or savvy investors,” the apartment features a living and study area, a private balcony in close proximity to public transport.
South Australia
Cottage charm
Look past the ageing walls and partly demolished kitchen, and you will see the potential of this original cottage in the rural South Australian town of Gladstone.
The three bedroom residence sits on a 1000sqm lot, and features high ceilings, three bedrooms and original leadlight picture windows.
30 Fifth Street, Gladstone is priced at $139,000.
City digs
For buyers looking for something ready to live in now with nothing to do, 108/160 Rundle Mall, Adelaide is on the market for $130,000 - $140,000.
The one bedroom studio apartment features a kitchenette, living area and a designated study space.
Tasmania
High country
The chance to snap up your own part of Tasmania's high country is on offer at 7 Little Dog Court, Miena.
Currently home to a shipping container that is part of the sale, the 2753sqm elevated land parcel presents a rare opportunity to build a holiday cabin, or home.
The site is for sale for offers over $149,000. Picture: realestate.com.au/buy
It has been excavated and is ready for build, subject to approvals, and has power at the street.
The site is for sale for offers over $149,000.
Town home
Ready to move in but also offering scope to renovate is this two bedroom, one bathroom home at 14 Bowes Street, Queenstown.
The home close to town and is listed for $135,000. Picture: realestate.com.au/buy
Listed for sale for $135,000, the home is in close proximity to town and has new flooring and blinds, a new oven and reverse cycle air-conditioning.
It is set on a 550sqm block.
Queensland
Quaint Queenslander
In the Queensland rural town of Charleville, a two bedroom, one bathroom home at 19 Edward Street has been listed for sale for offers over $159,000.
This two bedroom, one bathroom home at 19 Edward Street has been listed for sale for offers over $159,000. Picture: realestate.com.au/buy
Used as a rental property for many years, the home features a big kitchen, an open Living and dining area and is described as a solid investment.
New South Wales
Renovator's delight
In the small town of Warialda is this blank canvas property ready for a renovator to work their magic.
Set in the heart of the town on a 5391sqm block, the home features two bedrooms, an open plan kitchen, dining, and living area, a front veranda and a carport.
For a smidge less than the price of a bitcoin, 134 High Street, Warialda is priced at $160,000.
Western Australia
Tidy unit
For exactly a bitcoin, is this two bedroom unit in WA’s Gascoyne priced at $175,000.
Set on a strata lot of 498sqm, 11a Fane Crescent, Carnarvon is part of a complex of three units.
For a little over a bitcoin, is this two bedroom unit in WA’s Gascoyne priced at $175,000. Picture: realestate.com.au/buy
This article first appeared on Mortgage Choice and has been republished with permission.
English (US) · 