Buying a house with cryptocurrencies
Investment portfolios are becoming more and more diversified nowadays. Among the options available, one that has received a lot of media attention in recent years is cryptocurrencies.
Perhaps you also have cryptocurrencies in your financial products? If you're wondering how to buy a house with these digital currencies, Vistoo has the answer for you!
Here we will explain in detail what cryptocurrencies are, how to get your hands on them, and how to pivot your existing cryptocurrency wallet into buying real estate.
How do cryptocurrencies work?
If you don't know how this new payment method works, no worries! We will explain it to you in a few lines.
A cryptocurrency is, just like our dollars, a currency that can be used to buy goods. The main difference is that there is no physical currency for it. Primarily used to make online purchases, cryptocurrency can be used to buy:
- Airline tickets;
- Your next house!
These cryptocurrencies can be linked to accounts that can then be used with the same ease of access as your bank account. The term "virtual currency" is often referred to when talking about cryptocurrencies, but its value is very real. Its value comes from the ever increasing use of it around the world by ordinary people.
The most popular cryptocurrency is of course Bitcoin, but below are a few that are also worthy of our attention:
- Binance Coin
To acquire some, you need to have an open account on a cryptocurrency exchange, comparable o a conventional stock market.
Buying your home in cryptocurrencies: do your research!
The main appeal of cryptocurrencies lies in their ability to increase in value. This value increases depending on how people use it in the short, medium or long term.
Bitcoin has done well in establishing itself as a purchasing currency in its own right, but due to the potential volatility of the digital currency market, it will take some research to find a brokerage that accepts this digital payment option.
Some real estate brokerage firms are willing to do business with their clients using cryptocurrencies. This way, you will pay all brokerage fees in Bitcoin or another currency.
The main reason for buying your home in cryptocurrencies is to avoid the often high fees that some exchanges charge when converting these digital currencies to dollars.
The importance of keeping your records up to date
Also consider having a contract that protects you as to the dollar value of cryptocurrencies at the time of sale. Since it can fluctuate, you should agree with the seller on a fixed value at the time of sale.
Also keep in mind that cryptocurrency is not legal tender in Canada. What this means is that it is not protected by any government or central authority like the Bank of Canada.
In short, buying a home in Bitcoin or another cryptocurrency is for people who have some monetary value tied up in this type of investment and want to maximize their assets.
Talk to the homeowner directly about your plans to buy in cryptocurrency
Another way to do this is to speak directly to the owner of the property you wish to purchase. Companies that specialize in direct real estate sales can be your allies in your search.
More and more people are becoming familiar with cryptocurrencies. You might be surprised to find that the seller accepts your offer in cryptocurrencies!
Here is a summary of the options available to you:
Buying real estate with a broker that accepts this payment
Deal directly with the owner
No matter how you choose to do business in real estate, Vistoo can help you find your next home, condo or multiplex.
To find a home for sale in your area, check out our interactive map, or list your property for sale or rent on our website! Vistoo, an intelligent digital platform in the real estate industry.