There has been a lot of publicity surrounding the purchase of real estate with cryptocurrencies like Bitcoin. However, although bitcoin has considerably increased its value, the use of assets to buy properties and homes is not so easy.
Lately, a considerable amount of attention has been paid to the cryptocurrencies that enter the real estate industry and the houses for sale at bitcoin prices. Earlier this year, Sotheby's International Realty sold a luxury apartment in Austin, Texas, home to bitcoins, and in Miami, a 950-square-foot condominium sells for approximately 60 BTC. There are also more extravagant sales in the real estate market, and bitcoiners can now buy an abandoned prison for around 88 bitcoins. Although, according to the Mansion Global publication, many real estate agents and lawyers have revealed that offering to buy a house with bitcoin may have some problems.
For example, most purchases of BTC to real estate are treated as a "cash" purchase, and users generally make transactions between wallets or a payment facilitator such as Bitpay. Due to the type of transaction, both parties will need a lawyer to close the deal and are likely to accept only a decree or document. In addition to having attorneys present, both parties must also use an insurer and an insurance company. On the other hand, some real estate businesses have been made, but they have been left on the road due to fluctuations in the prices of bitcoins.
Redfin real estate agent based in San Francisco, Carina Isentaeva, explains to the publication that not all attempts to buy in a house of cryptocurrencies close their businesses. Isentaeva took care of a house sale in Silicon Valley that failed because the buyer could not sell their bitcoins before the closing date. There are also tax implications in many different countries, as the US. UU They require 20% of capital gains and more for the net appreciation of the investment in cryptocurrencies. Some potential buyers have had problems with people who also hesitated to accept Bitcoin.
Bitcoiners with sufficient funds to buy a house must find an intermediation service or a commercial processor to convert their cryptocurrencies into fiduciary reserves. Another option for cryptocurrency buyers is to secure a secured loan with their bitcoins, but there are not many companies or financial institutions that offer this type of service. The collateralized cryptocurrency loan companies are very few, but there are some new companies like Salt Lending and Unchained. The Unchained Capital firm based in Austin, Texas, is a company that has been offering loans backed by the cryptographic assets of the buyer.
"Unchained allows owners of bitcoins to borrow up to $ 1 million with interest rates between 10% and 14%. The company has reached up to $ 5 million in exceptional cases, "explains Joseph Kelly, co-founder and CEO.
The Unchained executive explains that the company has also completed longer-term contracts and has seen many clients use the loan service for real estate purchases. "We see many people receiving money for a down payment," Kelly said.