Bitcoin is a digital currency that is now viable with many merchants all over the world. Expedia, Microsoft, and specific shops are now accepting Bitcoin transactions. However, what many people wonder is whether they can use their Bitcoin to buy real estate.
Bitcoin has seen its ups and downs, but it still remains one of the top cryptocurrencies all around the globe. It reached a record high in December, 2017, then plunged several thousand dollars within the month. Since then, one can say that Bitcoin is a somewhat shaky, but viable, alternative for making online payments.
Can You Buy a House Using Bitcoin?
The real estate industry has its own rules and trends. Most buyers don’t just transfer the full payment right away. They have to think about mortgage payments or find title insurance, along with many other things. Even if you don’t prefer all this, it’s technically possible to buy a house with virtual currency like Bitcoin.
With manufactured homes becoming more popular, cryptocurrency might be even more viable. The cost is less than a traditional house, so sellers could be more open to such transactions.
The First Bitcoin Home
Buying real estate is hard enough with regular USD coin, but there have already been some real estate transactions involving Bitcoin. The first sale was a single-family home located in Texas. The main challenge was finding someone who would accept cryptocurrency for such a large amount.
BitPay conducted the transaction and converted the Bitcoin into U.S. dollars. The same company has also helped out with other kinds of real estate transactions. These include apartments, houses, and single-wide mobile homes.
Paying with Bitcoin Cash
There are even some instances where private sellers or real estate developers may not want to go through an organization like BitPay. Benjamin Shaoul is one of them. As part of the Magnum Real Estate Group, he says that there are buyers who would like to make a home purchase using Bitcoin. If that happens, Shaoul doesn’t plan on exchanging Bitcoin, but keeping it as an investment.
Examples like these give hope to those who have some Bitcoin in their investment portfolio. Having a private seller accepting cryptocurrency could mean the difference between buying a condo vs. renting an apartment for many people.
Not a Simple Case Every Time
If you ask real estate experts, they will warn that buying a house with Bitcoin won’t be so cut-and-dry for each case. There may be sellers who will accept payments to their Bitcoin wallet instead of dollars to a bank account.
However, finding escrow companies who will handle such transactions is a tricky business. The same goes for finding title insurance. For most cases, the usual requirements will be to cash out the Bitcoin and make the transaction more traditional.
Should You Buy a House Using Bitcoin? The Reasons for and Against
The short answer to whether you can buy a house with Bitcoin is yes, but with certain conditions. Both parties have to be on board, with a trusted company handling the transaction.
With that said, the question of whether one should make such a payment comes to mind. Have a look at the pros and cons of buying real estate with Bitcoin before moving on:
Pros of Buying a House using Bitcoin
- You get a secure asset in place of a volatile cryptocurrency
- Real estate is more likely to increase in value than decrease
- Sellers who accept cryptocurrency may offer a discount in order to gain Bitcoin
- It can be a speedier payment process
Cons of Buying a House using Bitcoin
- Losing out on a potential increase in Bitcoin value
- Sellers might be unwilling to cooperate
- Difficult to find a listing that accepts digital currency
If you really want to buy real estate and are already wondering “are apartments better than houses?,” Bitcoin can make your dreams come true.
Cryptocurrency, of which Bitcoin was the pioneer, is now in the public eye. There are now NFTs (non-fungible tokens) to establish the truncation and accessible investment platforms for cryptocurrency. With this in mind, Bitcoin just might become a widely accepted payment for several industries in the near future – including that of real estate.