Nowadays, you may be hearing that payment has been done using bitcoin in buying and selling real estate. It is a form of virtual currency in which no third parties are involved in making the transaction. It is a secure and encrypted transaction. Yes, now you can purchase real estate using bitcoin. Various real estate groups have buyers, which are planning to buy their properties using bitcoins.
The idea of using bitcoin as a payment method has emerged in a few years, and now there are sites like Oil Profit and others through which you can buy real estate very easily. Visit the site to find properties and search using tools like “bitcoin”, “ethereum”. Most of the sellers started accepting these two currencies.
Many people say that it is not easy to buy real estate with the help of bitcoin. But they are wrong because many sellers are accepting bitcoins, and they feel very comfortable accepting payment in the form of bitcoins since it is easy to handle the virtual currency and very less often they ask their buyers to cash out their bitcoins to treat the procedure in a traditional way.
How does it work?
Bitcoin carries an anonymous address of the buyers or sellers, which no one can crack. It is basically a decentralized payment system whose data is located at different locations and is shared between different communities to make it more secure. Bitcoin uses blockchain technology, and the structure is so advanced and secure that there is no point of failure or any kinds of attacks, as said by bitcoin consultant Chris Merrett.
There are various nodes. So if the hackers access one or two nodes, it is nearly impossible to get access to other nodes because they start acting as immune to the blockchain, and within the meantime, the first node location and codes get changed which makes it difficult to hack in real-time. Using cryptocurrency is simple, and it takes only a few minutes to transfer a bitcoin from buyers to sellers, which also reduces the problem of carrying cash with yourself. And it is safe and reliable to do so from your device.
How can you purchase real estate?
There are various pros and cons, and it will be beneficial for you to know both. The transaction using cryptocurrency does not take much time or effort. It usually takes 10 minutes to complete a transaction using bitcoin. See how easy it is, and there is no banking system or any kind of the third party involved to buy a house. You only require two parties to agree on the transaction.
Nowadays, people are using bitcoins to buy properties like real estate and things like pizzas.
You can also easily convert your bitcoin into dollars if you or your dealer require cash to complete the transaction. You can pay for the house using bitcoin. Bitcoin values always fluctuate, so it is very risky some days. Hence sellers demand fixed amounts of cash which can be available easily by selling your bitcoin.
But remember to make sure that you trust the second party from whom you are planning to buy the real estate because after the payment is done and you wish to reverse it later realizing you were wrong, then you will have to make the compliance from both the parties, as told by Jake who say, “Bitcoin is the cryptocurrency whose transactions are not reversible.”
Jake also says, that “There is no need for a third party when smart contracts are self-enforcing mediums once the mortgage contract is signed cryptographically because it is an open-sourced mortgage contract and the third parties can interfere traditionally if you use a traditional contract.”
How Is It Taxed?
Tax totally depends on the country. There are various services to simplify the tax process as in the US bitcoin consultant, Jack Bryan stated that “The IRS says they consider every transaction needs to be calculated as a capital gain tax.” Tax on Bitcoin and property completely depends on the country you are living in and their laws.
Crypto may offer discounts when you are purchasing real estate. Investors in crypto have increased over time, and so is the profit in the market of cryptocurrency.
The reason is that the sellers sometimes accept the offer price lower than the house price of crypto because they know that in near future the bitcoin they are getting can give them profit, so if you offer them a low price for the house they might accept your offer.
Increase in purchase speed
Right now, cryptocurrency is covering the market vastly, and many sellers started accepting bitcoin instead of dollars. Because paying with cryptocurrency is a fast and speedy process cutting several typical types of hurdles of the mortgage process.
Buying a home with bitcoin instead of cash is a lot easier, and in near future, everyone and everything will trade with cryptocurrency only.
Acquirement of More Secure Asset
Cryptocurrency experiences daily fluctuations, and sometimes the market may drop in value, and sometimes it may give more returns than expected which means the crypto market is volatile in nature.
It is more like a stock market and when you buy a home with your crypto, you are likely to trade a volatile asset whose value increases at a faster rate rather than real estate value which grows slower than the crypto market.
Nowadays, it is easy to buy a house using your cryptocurrency such as bitcoin but not most of the sellers are accepting digital currency payments. And if they are, they are accepting payment in bitcoin and ethereum. So, if you have enough cryptocurrency and are willing to buy a home, it is better to trade with this digital payment option instead of offering cash to the seller.