If you think Bitcoin is another word for a small amount of cash, it’s time to get up to speed on modern payment methods! Bitcoin is a form of virtual money. Consumers use virtual money, also known as cryptocurrency, to purchase everything from a cup of coffee to technology products. Savvy homebuyers are even using it to get their hands on coveted real estate.
Buying a home with Bitcoin is far from mainstream, but we’re seeing it more, especially in luxury real estate. Although Bitcoin is still uncharted territory for most, it represents yet another option to fund what will likely be the most significant investment you’ll make in your lifetime.
Why Buy With Bitcoin?
Once you get used to the idea, buying a home with Bitcoin comes with some tough-to-argue benefits. Here are the top two:
- Bitcoin purchases process quickly.
Most real estate transactions conducted with cryptocurrency are similar to cash deals. However, if you’re getting a crypto-backed loan, expect the process to take a little longer.
- Purchasing a home using Bitcoin allows you to diversify your investment portfolio.
Cryptocurrency changes its value in a heartbeat. If you want to include a bold investment in your portfolio, a home purchased with Bitcoin will add a level of risk.
Buying a Home With Crypto: The Cons
Since the world is still coming around to cryptocurrency, there are more cons than pros to using it in real estate. Here are the negatives:
- Not many sellers, real estate professionals or lenders accept cryptocurrency.
- If you buy with Bitcoin, you don’t get the same legal protections you would receive if you purchased a home the traditional way.
- If you use cryptocurrency to purchase a home, you could be on the hook for hefty taxes.
- Cryptocurrency values change so rapidly that the amount you owe at closing could be drastically higher than expected.
Contact Eliterealtor.com Today!
Stella Shalamova understands that today’s residential and commercial real estate buyers often use creative methods to fund their investments. If you are considering buying a home with Bitcoin, contact Stella Shalamova today to learn your next steps!