Our Bitcoin Got Stolen!

Question


Barefoot,

We are in our early thirties and not working. We sold everything in 2016 to caravan around Australia. We rented out our family home and used the equity to purchase our $80,000 caravan. This extended our home loan, but the rent covered both loans. Winning! We returned home, sold the caravan and mistakenly invested $30,000 into Bitcoin, which was then stolen (hacked from our ‘Binance’ account). Our mortgage is $440,000, and we could sell our home for about $700,000, but with all the fees it would cost $75,000. Is it worth selling to consolidate?

Ben and Elisha

Scott's Answer


Hi guys,

Having your Bitcoin flogged from one of the world’s largest crypto-exchanges is shocking. I honestly have no idea what the recourse is on an investment whose main feature is anonymity.

Otherwise, you have an otherwise straightforward question: should you sell your home to become debt free?

Well, you could take the easy option and sell your home.

But I personally wouldn’t do that, for a couple of reasons.

First, because I’m a tightwad, and I don’t like to see you paying transaction costs, especially if you’re planning on buying another home in a similar area in the future. (I also don’t understand how you’ve calculated the selling fees as costing $75,000. An agent should cost at most $20,000, and you won’t incur capital gains tax if you’re selling within six years of first renting out your property.) And second, because you’re in your thirties and you’re fresh from the holiday of a lifetime. If I were you, I’d work hard, pay down my mortgage and build my net worth.

The bottom line: it’s either the magic diet shake or the daily 5 am run. Which will you choose?

Scott