Jan 09, · Bitcoin has been a popular subject in the news lately and it’s been causing quite a stir in the real estate and mortgage industries, as well. What is Bitcoin? In case you weren’t aware, bitcoin is a type of cryptocurrency. It is a decentralized type of digital currency that allows for peer-to-peer purchases and its value changes daily like. Jan 21, · LISTEN: You can use Bitcoin to buy a house now Your browser does not support the audio element. Although the idea of buying a house using Bitcoin might make many in . Home loans are the catalyst use-case for BlockFi and we are proud to be helping our clients looking to diversify their investments, upgrade their property, or purchase their first home. For crypto asset holders, leveraging your Bitcoin (BTC), Ether (ETH), or Litecoin (LTC) is a great way to put money towards a home without having to sell.
Using bitcoin to buy a houseCan You Buy a Home with Bitcoin?
Each user has an anonymous address, and you can trace every bitcoin's transaction history. It uses blockchain technology, a database that co-exists in several locations and is shared by the community. Taxes depends on the country. Enthusiasts are purchasing a wide variety of items with their bitcoins, from pizzas to real estate. The first real estate transaction was a single-family home in Austin, Texas.
The seller wanted the bitcoins converted to dollars, so they used BitPay , a global bitcoin payment service provider, to complete the transaction.
Bitcoin's value fluctuates every day, so the risk is on the buyer's side since the seller agreed to a fixed dollar amount. You can pay for the house, the realtor and anyone else at the same time. However, make sure you trust the second party if you're thinking of buying into real estate.
Ethereum, a cryptocurrency similar to bitcoin, is one built on making smart contracts. Home Lifestyle Real Estate. How to Buy a House With Bitcoin. Cryptocurrency is the newest way to buy and sell, even when it comes to real estate property. Pinterest Facebook Twitter Email.
By: Farima Alavi. Related To: Real Estate. How Does It Work? You can also buy a house with bitcoin, and it's not as hard as you may think.
You just need one thing: For the buyer and seller to agree on exchanging bitcoin for the property. Consider the first single-family home sale in Texas involving bitcoin, announced in : "The challenge, which actually wasn't all that challenging, was to figure out who would do an exchange that large," J Kuper, broker at Kuper Sotheby's International, told CNBC's Diana Olick.
The parties involved completed the transaction with BitPay , which turns bitcoin into dollars, because the seller wanted U.
For one real estate owner and developer in Manhattan, BitPay won't be necessary. Benjamin Shaoul of Magnum Real Estate Group says he has buyers who want to pay with bitcoin, and he plans on keeping it. Sites like Open Listings are making it easier to find properties you can purchase with bitcoin with a search tool that allows you to look for the words "bitcoin" or "ethereum.
All the same, since the idea of using virtual currency to purchase real estate is so new, there is a "still a lot of nervousness for newcomers to the currency," Olick reports , adding "much of the concern may be around the lack of regulation so far in cryptocurrency and the lack of understanding as to how gains in bitcoin are taxed. Some experts warn that buying real estate with bitcoin won't be simple in every case. As Open Listing notes , "Even if you are able to find a seller that's willing to accept your offer in bitcoin, it can be tricky to find title insurance and escrow companies who feel comfortable handling virtual currency transactions.
To take on your home purchase, they may require you to cash out your bitcoin so that your transaction can be treated more like a traditional house purchase. But at the end of the day, if you want to buy a house with bitcoin, there are ways to make it work.