Bitcoin is being used in over 270,000 transactions daily, and its usage is only increasing.
So, why not use your Bitcoin to make your real estate transactions?
The future of real estate is changing to accommodate the use of bitcoin in property transactions, and more real estate companies are facilitating bitcoin transactions. In fact, bitcoin is becoming as popular an investment as real estate.
Using Bitcoin To Purchase A Property
Advantages
- Investing in property gives you a chance to diversify your assets.
- Real estate transactions favor cash buyers, and using bitcoin is like being a cash buyer, which can give you more negotiating power
Disadvantages:
- One of the drawbacks of purchasing a property using bitcoin is the lack of sellers. There is limited availability of properties being sold for bitcoin, and you may have a hard time finding properties in your desired location.
- If you decide to invest in property, you may miss out on future appreciation and returns on your bitcoin.
Advantages:
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The chance of appreciation offered by owning bitcoin.
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If you open up the sale of your home to bitcoin buyers, you will widen your audience and attract more cash buyers.
Disadvantages:
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The chances of appreciation are equally weighed with the possibilities of bitcoin’s value depreciating, resulting in losses.
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The complexity of taxes involved in bitcoin real estate transactions applies to both the seller and the buyer.
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You will also need to establish a secure virtual wallet for your new bitcoin, which may involve enlisting help, depending on how well-versed you are in cryptocurrency storage.
Realty broker Ryan Serhant of “Million Dollar Listing New York” on the Bravo network has told his clients and colleagues he expects half of all future transactions to be in crypto.
The rise of crypto mortgages
The financial-tech company Milo has launched what it calls “the world’s very first” crypto mortgage. The Florida startup says homebuyers worldwide can now use its platform to finance the purchase of a US home with bitcoin. The loans require no credit check, down payment, or tax returns.
People appear to be pretty interested. Milo itself has said it has a long wait list of crypto-savvy buyers chomping at the bit (7,000 of them), and so far, it has issued over $400 million in loans. Other companies have similar products in the works too. Ledn, for example, just raised $70 million for its Bitcoin-backed mortgage program.
Bitcoin’s unstable value makes crypto mortgages a risky option for typical homebuyers. For example, if the value of bitcoin fell after the home purchase, the borrower’s interest rate on their mortgage would trend higher.
Like many other transactions, real estate transactions are starting to accommodate the use of bitcoin to buy and sell houses. Since bitcoin is an emerging currency, there are limits to the sellers, buyers, and real estate companies willing to deal in bitcoin.
