Want To Buy a House With Bitcoin? Effort May Be Harder Than You Think
Bitcoin investors are running into problems in trying to buy homes with the profits of their Bitcoins investments.
There’s no question about it. Early Bitcoin investors are sitting on a ton of cash due to the meteoric rise of the cryptocurrency.
While many choose to sit on their growing wealth, and not spend it, for others, the new found cash is burning holes in their pockets. They are ready to spend it and one of the purchases they are choosing to make is to buy property. Unfortunately, some of them are being denied.
It’s being reported that Bitcoin investors are being banned from taking out mortgages using their Bitcoin profits in the UK. The reason relates to the buzz phrase that Bitcoin investors are growing to detest - money laundering.
Apparently, the UK is experiencing a property bubble, according to The Sun. The news outlet states that lenders are skittish about the source of the cash and have been rejecting Bitcoin for mortgages.
The media outlet quoted a broker who had been denied by several lenders. Interestingly, this broker was quoted as saying one lender even asked him “what was cryptocurrency?”
There is hope
There are some who are willing to accept the volatile crypto as a payment for a house. There is a website called OpenListings that spells out how to complete such transactions. On its site, it outlines the ins and outs of the process.
It even lists properties in which sellers are willing to accept Bitcoin.
It states that once a person has an accepted offer, the title and escrow companies have to agree on the terms to handle the transaction. On its website, it states the following.
Even if you are able to find a seller that's willing to accept your offer in Bitcoin, it can be tricky to find title insurance and escrow companies who feel comfortable handling virtual currency transactions. To take on your home purchase, they may require you to cash out your Bitcoin so that your transaction can be treated more like a traditional house purchase.
In the U.S., at least for now, buyers and sellers seem to be more open. Ben Shaoul, president of Magnum Real Estate Group, spoke to CNBC about the popularity of the concept. He said the following.
Our buyer has evolved, they've moved from mom and pops to young people who want to pay with various forms of payment. Cryptocurrency is something that has been asked of us — 'Can you take cryptocurrency? Can we pay that way?' — and of course when somebody wants to pay you with a different form of payment, you're going to try to work with them and give them what they want, especially in a very busy real estate market."
The business news outlet noted that the first single-family home sale was in Texas last year. It was stated:
The challenge, which actually wasn't all that challenging, was to figure out who would do an exchange that large.