Many real estate transactions these days are taking place in Bitcoin and other cryptocurrencies. However, for the masses, it is not easy to understand how the real estate transactions can actually take place in Bitcoin. The thing is that many ordinary people have invested smaller amounts of money in Bitcoin at the early stages. As a result, they have asked for a lot of money in Bitcoins as well as other cryptocurrencies. This is the reason why they are trying to use Bitcoin in order to conduct other transactions like purchasing a house.
We will today share with you some details about using cryptocurrencies for buying a house.
How can you buy a house with Bitcoin?
In the Bitcoin payment ecosystem, the money can be transferred with the help of the wallet address quite easily. This address is entirely anonymous. Moreover, the nodes are not impacted by hacking as well. In case, some of the nodes are hacked, automatically the network will be using the other nodes in order to complete the transaction. As a result, the level of security which will be provided is on the higher side. Moreover, the address is given by the seller of the house. As a result, the address is included in the transaction documents as well. This ensures that there is no scope for the mistake in the address as well. The verification of the transaction can be done online by backtracking the blockchain. This ensures that the transaction can be completed quite easily.
How to handle the taxes?
You can easily handle the taxes through services like Node40’s blockchain Accounting Tax service.
How to initiate the transaction?
You need to understand that in order to buy a house in Bitcoin, it is important for you to make sure that both the parties are okay with the Bitcoin-based transaction. You can transfer the Bitcoins directly and it is up to the seller to convert them into US dollars. You need to keep in mind that since blockchain-based transactions can be concluded within a couple of hours, the transaction is pretty safe. On the other hand, Bitcoin varies in price on a daily basis, the risk of volatility is up to the seller.
Thus, if you’re thinking of buying a house with Bitcoin, these are the steps which you have to follow in order to conclude the transaction quickly and safely to complete the real estate deal. Keywords: buy a house with bitcoin uk, land for bitcoin, bitcoin property, bitcoin real estate transaction, buying with bitcoin, bitcoin cars, buy a house with ethereum, bitcoin house
Here’s the one thing you need to buy a house with bitcoin
CNBC- Bitcoin took a wild ride in 2017, reaching a record high above $19,800 in December and then plummeting below $11,000 in the same month.
The cryptocurrency isn’t just a risky investment opportunity for the adventurous; it’s becoming an alternative way of paying for regular things. Over 100,000 merchants worldwide accept bitcoin, including Microsoft, Expedia and at least one Subway sandwich shop.
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 2017: “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.S. dollars, Olick reports. BitPay has handled other real estate transactions, including a Lake Tahoe property that sold in 2014 for 2,739 bitcoins, or $1.6 million.
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.
“I think it will become a long-term means to make payment,” Shaoul told Olick.
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.