Buying a House With Cryptocurrency
The popularity of cryptocurrency has surged in recent years, and it has now made its way into the public eye. It’s no longer strange to hear that your colleague has invested in Bitcoin or your neighbor is buying Ethereum.
However, as the use of cryptocurrencies becomes more common, it raises a few questions. What can you do with it? Can you spend it at the grocery? Could you use Bitcoin to buy a property?
Buying House With Crypto
Although it has been many years since the introduction of Bitcoin, investors are still finding it difficult to use their crypto assets to buy a home. The most common reason is lenders and conveyancers are unwilling to accept cryptocurrency.
Much of the skepticism about cryptocurrencies stems from their well-publicized links to illegal behaviors, particularly money laundering. In some countries, there have been occasional instances of homes being purchased using cryptocurrencies, but these are the exception rather than the rule. Buying houses using Bitcoin hasn’t yet become commonplace, as some would have hoped.
If you’re a buyer trying to fund your purchase with cryptocurrency, you may be lucky to find a lender and conveyancer that are prepared to help, but this will almost surely involve a lot of investigation and is far from certain.
Using Cryptocurrency in Property Acquisition
Buying a property with crypto can speed up the property acquisition process. However, it’s understandable that sellers are still hesitant to accept Bitcoin or other cryptocurrencies in their operations. Here is why:
Volatile Nature of Cryptocurrency
Because cryptocurrency’s value fluctuates rapidly, any offer you make with it will fluctuate in value for the purchase of a home. This is why sellers are hesitant to take crypto as payment because they are concerned that they will not obtain the value they expect.
Home sellers don’t want to cope with any kind of uncertainty. Because real estate typically rises in value, sellers are likely to be able to sell their homes for more than they paid for it. Accepting a Bitcoin or other cryptocurrency offer does not guarantee that the profit will remain beneficial.
Unawareness of Digital Currency
Cryptocurrency has been around for a little over a decade, but it has only recently gained popularity. Many people are still unfamiliar with digital currency and may be hesitant to enter into a transaction using a currency they don’t completely comprehend – particularly if it’s their first time interacting with cryptocurrencies.
Locating a Seller
If you want to use your crypto to buy a home, finding a seller who would accept digital currency on regular home listing sites can be tricky. Some merchants will state that they accept cryptocurrencies in their listings, but you’ll have to double-check.
Some real estate websites include filters that allow you to see only homes for sale that take cryptocurrencies, however, this is not yet a common option on many sites.
Examples of Property Acquisition With Cryptocurrency
There have been occasional instances of homes being purchased using cryptocurrencies, but these are the exception rather than the rule. Buying houses using Bitcoin hasn’t yet become very common, but still, there are some examples.
It’s known that two luxury houses were sold in Madeira Island, Portugal, and the payment was made with a cryptocurrency — Ada, Cardano. Also, some developers in the UK are known to have sold houses in exchange for Bitcoin.
The Bottom Line
As we’ve discussed, not all sellers will accept a digital currency offer, and even if they do, they may only take well-known cryptos, like Bitcoin or Ethereum. This is why it’s still difficult to buy a home using crypto. But if cryptocurrency continues to develop at the rate it has over the previous decade, this might begin to change, with future buyers and sellers becoming more at ease in the world of digital coins.
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