It’s 2018, and not only are Bitcoin users able to invest in cryptocurrency within an IRA but also they can use their cryptocurrency to make real estate purchases and have been doing so a steadily increasing rate. You still won’t find homes listed in BTC instead of USD on mainstream real estate websites quite yet, but you can make purchases through a number of online companies that have recently cropped up.
Here are some answers to your most pressing questions about purchasing and selling a house with Bitcoin.
How Can I Buy Real Estate With Bitcoin?
There are a number of new businesses that foster and promote real estate transactions using Bitcoin. These mostly aim to unite like-minded buyers and sellers, connecting those who are looking to use Bitcoin only. You can find and list properties on websites like Bitcoin Real Estate Inc., Spendabit, and others.
It’s important to point out that you may not need a special agency or service to perform a real estate buy or sell with Bitcoin. You can simply ask the seller, agent, or buyer if they’d be comfortable in going through with a Bitcoin transaction. If yes, a simple transfer using a payment service provider works. If no, you may have to liquidate your Bitcoin to usable currency to perform the purchase.
And of course, before going through with any real estate transaction, do your due diligence before sending or receiving any money. Any concerns, problems, or questions should be taken up with a real estate agent or lawyer.
Can You Get A Mortgage Using Bitcoin?
If you buy a house with Bitcoin and pay it off entirely up front, the transaction doesn’t really work that much differently than a traditional cash purchase. You transfer the currency to the seller’s account, transfer the title, sign some papers, and the property is yours. But, if you want to buy a home with Bitcoin and find financing in Bitcoin only, what can you do?
Unfortunately, you’re out of luck. Banks and financial institutions will not accept Bitcoin for financing. To these institutions, Bitcoin is much too volatile and if the cryptocurrency tanks, the banks could potentially see major losses. And, it doesn’t look like you’ll be able to apply for a bitcoin mortgage anytime soon, either. The development doesn’t appear to be on the horizon.
This shouldn’t come as a surprise, though. The point of Bitcoin and other altcoins is to move away from traditional financial institutions, and this type of transaction would only pull the two closer together.
Property Taxes, Home Insurance, And Bitcoin
When you finally do go through with a home purchase using Bitcoin, you’ll have to deal with property taxes and home insurance. Of course, you’ll still have to pay property taxes – and the rates will vary depending on your location – and get home insurance.
As of right now, if you’re in the United States, in order to pay taxes and insurance, you’ll have to go through traditional route and pay with USD. This means liquidating Bitcoin to USD and paying either by check, money order, or any payment method the local insurance companies and tax collectors will accept.
Once again, if you feel lost or confused, especially with taxes, you may want to reach out to an attorney, accountant, or even local tax office to make sure you’re on track with payments.