In the midst of the growth of the crypto-active market, many entrepreneurs are beginning to bet strongly on these types of financial instruments, because of their reliability and the lack of intermediaries. In this scenario, there are even those who wish to mortgage their homes to invest in cryptoactive.
Such strategies proliferate in the UK, according to a Financial Times review. Despite the fact that "mortgage arbitrage" is no longer on the owners' route, a number of factors have coincided with the value of the real estate market and, given the exuberance of the crypto-assets, the possibility of Secure (and why not? Have a positive return on investment) seems extremely attractive.
However, the type of investor has a specific profile. The properties that have been used for this type of operation are wealthy people, and real estate can have a value of 10 million pounds. The low interest rate was one of the factors that influenced the owners' decision. In addition, according to the report, there has already been a case of which after an assessment by this figure, had 20%, about 2 million pounds, to invest in bitcoin.
Interest rates below 2% and 5-year fixed-rate mortgages are very attractive performance characteristics for high-income homeowners, so owners simply seek to transfer funds to these investments where they can Performance.
We are a specialized lender at the top end of the economy but we see a dozen of these offers per month (...) This is something that has occurred due to the current low rates environment .
Simon Gammon
Director, Knight Frank Finance
Other doubts about the economic health of the UK after the Brexit, as well as the shrinking of Chinese investment and other major international alliances involved in this real estate market have influenced its growth because properties have become the best investment Behavioral system of the Kingdom.
According to Deutsche Asset Management, UK growth, which until now was extremely strong, would fall by 2 to 1.5% in 2016 if the United Kingdom were to leave the European Union, which was ultimately not fulfilled. According to official figures, gross domestic product (GDP) growth remained strong at 1.8% in 2016 and a forecast of 2.0% in 2017.
Moreover, due to rising commodity prices and the depreciation of the pound, the Bank of England estimates that inflation will reach a peak of 2.8% in 2018. The process of divesting the pound, EU will take until 2019 that some of these economic consequences could be intensified.
Mark Pattanshetti, mortgage manager of the brokerage firm Largemortgageloans.com said that the number of borrowers who have taken up debt for other investments has increased by about 50% since 2009 because they realized that borrowing Are relatively inexpensive and will follow Being for a while.
THE BEHAVIOR OF THE CRYPTOACTIVE MARKET IS KEY
By the beginning of 2017, the price of bitcoin was barely $ 1,000, with positive behavior but not as encouraging as in recent months. In fact, remember that in July, the price had a "crisis" due to the turbulence within the community, the influence of potential regulation, which resulted in reluctance.
Nevertheless, in a new demonstration of resilience, Bitcoin not only managed to overcome this difficult moment, but exceeded its own limit, reaching a record $ 3,400. Market behavior, in addition to the spread and the weight that is gaining in the financial world, are some of the reasons that probably invite such investments, although this compromise of important assets such as Properties, seems to announce A capital movement that seeks the cryptoactive as a protective measure.
Rich owners are looking for a better performance and Bitcoin seems ideal to get it, just as a securities broker has decided to go in full of this crypto.