First House in Britain To Sell For Bitcoin
A group of real estate developers has advertised the first four bedroom house in Britain to be sold for bitcoin.
A group of real estate developers has advertised the first house in Britain to be sold for bitcoin. The brand new four bedroom family home located just outside Colchester, Essex is priced at £400,000 in cash but comes with a £25,000 discount if paid in bitcoin. At today's bitcoin exchange rate, it will fetch 62.5 Bitcoins.
While the virtual currency is often accepted at restaurants, airlines and online retail stores, Go Home, a property developer, decided to take it a step further into brick and mortar. The house on sale for bitcoin is part of the company's ongoing Elmstead Green development comprising 32 homes.
Ed Casson, sales director of the group behind the project, said:
"We're offering one of our new homes on a development site just outside of Colchester, giving someone the opportunity to trade Bitcoin for bricks and mortar - another popular asset."
Besides making good PR, Ed is hoping to attract buyers who might have made a fortune buying bitcoin in the early days. Accepting bitcoin will also cut down administration costs for transferring ownership. It is a bold move on their part, especially in a UK real estate market that has been largely suppressed.
Since the time of the listing and early today, the price of bitcoin has gone up, from £3,411 to £4550. Mr. Casson admitted price fluctuation was an acceptable risk on their part:
"We are essentially taking a risk, with wild fluctuations in the exchange rate, but we see that the property market is changing and we want to be the first to embrace that change."
But the volatility of Bitcoin has not put off real estate developers in the UK. Daniel Roy, an entrepreneur, will accept the famed digital currency as payment for his £1.65 million townhouse in South East London.
One way of dealing with the volatility is spot conversion, a method applied by The Collective, a London, property developer. The firm announced it will accept bitcoin from prospective tenants as down payment and possibly rental payments in future in September .
According to The Collective, the move to accept cryptocurrency is a response to demand from international customers.