Cryptocurrencies are disrupting many industries for the better and the Indian real estate sector is the latest to see its benefit. Buying a house with crypto is global industry trend that has recently come to light. However, while the concept has still not caught up with the Indian audience, it is possible to buy a house with cryptocurrency in many countries.
Blockchain in Global Real Estate
With the stupendous rise in the value of Bitcoin in 2017, cryptocurrencies have gained quite a few followers as an excellent alternative investment. However, apart from being used as an investment, Bitcoin and other cryptocurrencies are also being used to purchase items. Approximately 100,000 merchants around the world accept Bitcoin as a valid payment option.
This also includes many global real estate firms such as Kuper Sotheby’s International Realty and Glen Oaks Escrow of the Pango Group that started using bitcoin for real estate transactions in 2017 and 2021, respectively.
In the global real estate industry, investors who have made high amounts of profits on virtual currencies are open to using them to buy real estate with crypto.
Can You Buy a House with Cryptocurrency?
Yes, you can undoubtedly buy real estate with crypto. However, you may have to find a seller who is willing to accept cryptocurrency as a valid form of payment. In March 2020, a ruling by the Supreme Court of India annulled a ban that the Reserve Bank of India (RBI) had imposed on cryptocurrencies in April 2018.
Here are a few points to keep in mind if crypto real estate interests you:
- The buyer will have to seek out listings that accept cryptocurrency. Even in countries where bitcoin or any other cryptocurrency is widely used for other purchases, the buyer will need to look for sellers accepting cryptocurrency.
- Check if the seller accepts cryptocurrency for the house’s total value or wants to take cash and crypto in parts. You can talk to the seller and find out the percentage of cash and crypto they are willing to settle on. This may be useful for them to avoid the complicated tax implications that come with dealing in cryptocurrency.
- There are two ways to use cryptocurrency when buying a house. As a buyer, you can either transfer the currency directly to the seller or liquidate it to fiat currency and then pay. You can choose one based on your convenience and the seller’s preferences.
- Bitcoin is not the only currency in the market. There are several cryptocurrencies and each of these have different values that fluctuate on a daily basis. Some sellers may be open to some cryptocurrencies and not others.
- Homebuyers wanting to use cryptocurrency for the purchase of a new property need to check if their banks are open to offering loans with cryptocurrency. Since cryptocurrencies are volatile, most banks do not accept them as collateral. This will also depend on the homebuyers overall financial standing, credit score, income, and profession.
Global Real Estate Cryptocurrency: Should You or Should Not Buy Real Estate with Crypto?
Buying a house with crypto comes with its own set of advantages and disadvantages that homebuyers should be aware of.
You can find a good bargain on real estate if the agent or seller is big on cryptocurrencies. Cryptocurrencies have divided investors into two categories and you can get a good deal depending on who you are dealing with.
Smart contracts speed up the process of buying a piece of land. There are no delays, lapses, or for that matter, middle persons involved in the purchase. You deal with the real estate agent directly. This reduces the time and effort spent on procuring a property.
Great financial move
Real estate, irrespective of how you buy it, can be a great financial asset. Using cryptocurrency to purchase it reduces the need to take a loan or liquidate your other investments.
It can be hard to find a real estate agent who accepts cryptocurrencies for payment. Since quite a few global real-estate firms or sellers are still not quite open to cryptocurrencies, especially with a considerable tax duty, the idea of real estate cryptocurrency may be limited to fewer locations.
Along the same vein, the lack of fewer global sellers accepting cryptocurrency narrows down the choice of locations for purchasing a home.
Since cryptocurrency is largely still unregulated across the world, buying or selling property with crypto comes with complicated capital gains tax implications.
To Sum It Up
The answer to whether you can buy a house with cryptocurrency is a yes, as long as you can find sellers who are open to cryptocurrencies.
Disclaimer: This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice to buy or sale property using cryptocurrencies; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.