A report shared by Crypto.com in 2021 revealed that there were more than 100 million people around the world using cryptocurrencies, according to Business Insider. Cryptocurrency is increasingly becoming popular and adopted in many industries, including real estate. However, many people have concerns about whether they should use cryptocurrencies to invest in real estate. Some crypto users believe in the value of Bitcoin and see numerous benefits of its use in the property market. But others still doubt if using crypto in real estate investing is smart. To help you understand if using crypto to buy property is viable, here are a few ways people use cryptocurrency in real estate transactions.
Property Listings For Sale
One of the most practical ways cryptocurrency, specifically Bitcoin, has been making its way in the real estate industry is through property listings. Many home sellers and agents have been listing properties with eXp Realty for sale and encouraging crypto transactions to attract the attention of potential buyers. In most cases, sellers insist that property buyers use bitcoins only to make a home purchase. Others ask buyers to split payments between fiat currency and cryptocurrencies. This tactic is ideal for luxury home listings where target consumers have cryptocurrencies and want to invest them in real estate assets. Additionally, buying homes with crypto helps investors convert crypto into tangible assets like real estate to balance and preserve their cryptocurrency gains.
Over the last decade, aspiring homeowners would sell their cryptocurrencies for a down payment to qualify for a home loan. But with the emergence of crypto mortgages, homebuyers don’t need to convert their Bitcoins to dollars or euros to get a mortgage. Obtaining a crypto mortgage allows you to leverage your cryptocurrency savings or wealth to purchase a home. With many mortgage lenders making substantial purchases of cryptocurrencies, paying a mortgage with bitcoin will soon be the norm.
Refinancing a mortgage with cryptocurrency is also possible in various regions. Some escrow companies are already accepting bitcoins to fund home mortgage refinance. This step shows how cryptocurrency dominates the real estate industry beyond the homebuyer.
Leverage ICOs For Real Estate Investment
Initial Coin Offering or ICO is becoming increasingly popular among property sellers and buyers. In simple terms, ICO is a tactic entrepreneurs in the crypto sector implement to attract investors to explore a new blockchain app, currency, or service. Entrepreneurs in the real estate industry use ICOs to build platforms where sellers can list their properties for fractional ownership by investors. The concept of fractional property ownership isn’t new in the world of conventional currency. But, according to real estate investors, it’s more affordable in the cryptocurrency industry because maintaining assets’ security is cheap. Ideally, this method is more like purchasing shares from a company that owns the real estate. So, when the property owner decides to sell the asset, all shareholders enjoy the property’s gains.
As cryptocurrency becomes acceptable, many people explore how to use it in the real estate sector. In recent years, investors have been using Bitcoins to create a buzz when listing properties for sale. Mortgage lenders also provide crypto home loans, accept bitcoin for down payments, and leverage ICOs to make fractional property ownership with crypto a reality.