Ladybird Living – Your London Estate Agent
Buying a house with Bitcoin
Bitcoin (a virtual currency which operates independently of a central bank) has become increasingly more popular since 2017. Recently, it has been accepted within the real estate market to purchase property. This blog will briefly explain how to buy a house with Bitcoin and the benefits and drawbacks of using Bitcoin in the property industry.
How to buy a house with Bitcoin?
The first step to buying a house with Bitcoin is to find a real estate agent who accepts cryptocurrency. This may be difficult as there are still many estate agents who are hesitant to accept cryptocurrency as its value is unpredictable and there is a lack of protection. Despite this, the number of estate agents within the UK and US willing to accept cryptocurrency as a payment method for buying properties is slowly increasing.
If you successfully find an estate agent who is willing to work with cryptocurrency, you can start to look for properties and then the estate agent will help you draw up a purchase contract which will state that you are paying for the property with Bitcoin. After signing the contract, you can use a service such as BitPay to process the transaction.
In case you are unable to find an estate agent who is willing to accept cryptocurrency, you can exchange or sell your Bitcoins for cash with a third party website.
Advantages of Buying a House with Bitcoin:
- Buying a house with Bitcoin is a quicker and easier process as it cuts out the middle man.
- Fees will be lower with Bitcoin compared to buying a house using your credit card.
- Most sellers accepting Bitcoin will offer a good discount for those who will pay in the cryptocurrency.
- You are more likely to secure the property as some sellers will only accept cryptocurrency as payment.
Disadvantages of Buying a House with Bitcoin:
- Bitcoins value is highly unpredictable. It may increase or decrease significantly within seconds, making it harder to agree on a sale price.
- It is difficult to sort out insurance, estate agent fees and stamp duty with Bitcoin.
- Some people use bitcoin to carry out money laundering, which leads many estate agents and sellers to avoid accepting Bitcoin as they do not trust that it is legitimate money.
In conclusion, it is possible to buy a house with bitcoin, but it is not a straightforward process as it may be difficult finding an estate agent who is willing to accept cryptocurrency. You should also ensure that you get professional advice before using bitcoin to purchase property as there may be risks involved.
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