Domain Names vs Real Estate

November 24, 2011 by  Filed under: Domain 

When you have some money to invest, the most obvious profitable investment is in real estate. You know with real estate that prices will inevitably go up at some point, and if you sell at the right time, could make hundreds of thousands of dollars.

It is possible that domain names could be a better investment than real estate. Just like homes are different, domains are different as well. Homes are becoming less and less unique and are even often referred to as “cookie cutter homes” because they are built on model tracks. Every domain name is unique. While there are many that have variations in spelling or have the same subject, they are all different. With homes, there can be one home similar to another which give the buyer more room to negotiate, while there is only one domain name and you could, therefore, hold a monopoly on owning that name which gives YOU the negotiating power.

Domain names cost less than a house does and you could sell it for a huge profit. Just like buying a house, you need to be smart about which one you buy, but if chosen wisely, you could make top dollar. What you may spend as a down payment on a house, you could spend on buying a domain name instead and turn just as much of a profit as you can on a house.

There are no brokers involved when buying a domain name, therefore no commission and more money in your pocket. Also, the sale on a house could be a lengthy process, whereas the sale on a domain name could be completed in less than twenty-four hours. Additionally, you usually have to prep a house to make it look more desirable to the buyer, with a domain name, the name sells itself and you don’t have to do anything to “pretty it up”.

Paying taxes on a house could cost you a pretty penny. A domain name costs you about $10 annually to keep.

Finally, there is no upkeep on a domain name. When you purchase a house you have to mow the lawn, fix the plumbing, change the air filters, and the list goes on and on. You have to worry about paying the mortgage and please your tenants. With a domain name, there is no upkeep. You can purchase it and take a vacation. You don’t have to worry about it at all.

Just like real estate, however, there are no easy investments. It is possible to buy a home that will drain your bank account if problems are found such as mold, rotten wood, or faulty structures. If a home is not chosen wisely, you could end up losing money in repairs and market slumps. The key with owning a domain name is that you choose one wisely and have the patience to let it sit and wait for the right time to sell. If you sell at the right time to the right person, the opportunity to make money is there. The best part is that you can’t lose money on a domain name, if you don’t sell; you only use what you spent on purchasing the name in the first place.

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