The sale of 500 Bitcoin that belonged to a Chinese billionaire resulted in the purchase of a 100,000 square-foot mansion in Los Gatos. The area is known for its multi-million dollar properties, lack of bad breeding, and a fleet of fancy cars that would rival Dubai. Something that previously seemed ludicrous, is now a reality as the internet commodity is used to purchase assets. Soon, this will open the door for property investments from Abu Dhabi to the UK.
Greater Possibilities for Buyers and Sellers
Estate agents who have upped the ante are setting the bar in terms of acceptable payment methods. Bitcoin payments facilitated through Ubiquity, bitpay, and Ibrea takes the unnecessary step of selling coins first out of the purchase process. The transaction will work much like a forex transaction, where a rate is calculated on a specific date and processed, irrespective of market changes that may occur thereafter. The platform is also ideal for those who have property, but don’t necessarily want to go the traditional route and prefer earning cryptocurrency for the sale of their asset.
It All Happens Online
With the help of payment platforms such as BitPay, estate agents are finding it easier to get a more international client base on board who wish to fulfill their transactions with cryptocurrencies. This also opens the possibility of an entirely electronic process from start to finish. Estate agents have already touched on this with the use of technology to promote their properties such as high-definition property videos that all potential clients to view their entire property online. There is also the added advantage of laser-scanning equipment to ensure the structural integrity of the property and its correlation to the house plans. As more and more vendors are becoming open to the idea of receiving Bitcoin as a method of payment, buyers and payers might be able to pay for these services with cryptocurrencies too.
Bitcoin-Backed Loan Alternative for the Traditional Mortgage
Buyers may not have to sacrifice their Bitcoins when purchasing properties, as they would still go the traditional finance route. The loan would be backed by Bitcoin, however, as opposed to a mortgage over the property. For the home buyer, this means that in the event of financial difficulty they won’t have to face foreclosure on the property as the Bitcoin will be the security instrument. For the financial institution, this can be a remarkable risk which could affect the price of the loan. Another reason for bypassing the direct payment with Bitcoin is a valid consideration, are the hefty tax implications if those Bitcoins enjoyed substantial appreciation. Ceding the cryptocurrencies to a financial institution will ensure that the owner still remains the owner as long as they’re keeping up with their installments, which means both assets are in hand.
Those who were able to secure Bitcoin before the massive boom are able to cash in on their lucrative commodity investment by purchasing property, thanks to a few estate agencies who color outside the lines. Not only are they able to increase their asset holdings, but also potentially avoid hefty taxes with smart transactions.