Bitcoin as been a hot button topic for quite some time now. The rise (and fall) of this interesting cryptocurrency have been discussed on everything from a person to a national level. More recently people have been discussing the impact of Bitcoin in relation to the real estate market–more specifically, can you buy a house with Bitcoin?
Can You Buy A House With Bitcoin?
Let’s dive into this somewhat controversial topic and see how real estate and Bitcoin can work together!
Bitcoin is a type of digital currency. It’s completely based online and it’s essentially money that is converted into a type of heavily encrypted code. The difference between Bitcoin and other types of traditional currency is that it is not managed or controlled by a third party. It can’t be controlled or monitored by a third party. This is both what makes it appealing to some and nerve wracking to others.
Why Bitcoin Makes Some People Nervous
Bitcoin makes some people nervous because it is unmonitored and unstable. It hit a peak in 2017 and since then it’s fluctuated pretty madly. In South Korea and China where Bitcoin is very popular authorities are already trying to crack down on trading of Bitcoin.
The popularity and rise to infamy of Bitcoin is also nervous making for some. Sure, it’s fun to order pizza and buy jewelry with it but when it comes to bigger and more long term purchases it seems frightening to assume that it is a safe alternative to traditional currency.
Can I Finance A Home With Bitcoin
It’s more difficult to finance with Bitcoin than it is to finance with traditional currencies. All lenders are in the business of risk analysis. They need to be sure that their investment on your behalf is a smart and safe one. With little evidence or monitoring on the Bitcoin side of things that can be tough to analyze.
One notable exception to this rule is the 23 year old Bitcoin investor in Seattle who used Bitcoin to secure a loan for a $415,000 home. This buyer used Bitcoin for their downpayment and as evidence for their traditional mortgage.
In this case and likely in all cases of Bitcoin being used for home purchases, the funds are converted to regular US currency to pay sellers and lenders. It is also stated that the buyer had to show proof of purchase of the Bitcoin as well as their transfer to traditional funds. That being said, it’s much like using other investments to purchase.
Can I Buy A House With Bitcoin
If you want to purchase a home with Bitcoin the main question is if the seller agrees to trade property for Bitcoin. It’s as easy as that. Most cases are not that easy.
In today’s current climate and housing market the only option is to convert Bitcoin into cash. At the end of the day buyers and sellers have that option to fall back on because of the dependability of the good old fashioned dollar. That is not to say it won’t become easier to buy and sell real estate with Bitcoin in the future.
The issue now is that it’s not a common currency so there’s not a huge market for trading Bitcoin for goods and services. It’s not like banks and ATM’s and credit card machines that we’re used to using on a daily basis. As the technology and the currency itself progresses I’m sure we’ll see changes on that front!
We haven’t managed a Bitcoin sale yet, but are absolutely willing to chat with you about the logistics of it! Give us a call at 949-413-6967 today!