If Microsoft and Virgin accept cryptocurrency as payment, it’s official; Bitcoin is no longer something only crypto enthusiasts dabble in. It’s a usable currency, received by tens of thousands of big-name ecommerce stores like Expedia, Shopify and Stripe.
Initially, global commerce stores didn’t readily adopt Bitcoin due to its volatility. Yet many realtors still consider it suitable for buying and selling real estate because of its inherent characteristics: instant peer-to-peer and border-less transactions.
According to CNBC, buying a house with Bitcoin requires just one thing: for the buyer and the seller to agree to exchange the property using Bitcoin. However, before you go ahead and exchange your property using Bitcoin, there are other things to consider.
Below is my step-by-step guide to buying or selling a property with Bitcoin:
Find a User-Friendly Platform
Platforms provide easy access for realtors to exchange their properties using Bitcoin. Just like any other marketplace, scams exist, so you must take proper precautions to avoid falling prey to them.
Propy is a popular platform that prides itself on being the first international real estate market that allows clients to buy property online. They use blockchain technology to eliminate many of the traditional hurdles encountered in cross-border transactions. Propy provides a global marketplace for realtors, property investors and individuals to carry out seamless and secure transactions.
Open Listings is another platform that makes it easier to find properties you can buy with Bitcoin. The search tool allows you to look for the words “bitcoin” or “ethereum.”
Make Sure the Platform is Secure
Different platforms offer varying levels of buyer protection for their customers. This usually ranges from ESCROW, Property Inspection, Digital Record Verification and Physical Ownership Verification.
I recommend using Propy as they provide all the above protection for people buying or selling real estate through their platform.
Convert Bitcoin to USD
Since Bitcoin is still volatile, it’s advisable you convert it to a stable currency (like the US Dollar) immediately after you receive your payment. This will help prevent loss of funds due to fluctuation in Bitcoin prices.
Platforms like BitPay make it easy for merchants to immediately exchange Bitcoin for USD or into their local currency. Although there are other means of exchanging Bitcoin, I advise using BitPay, simply because it’s secure and enables you to account for your income and taxes.
If you’re a merchant or investor who buys and sells properties, paying tax is inevitable — don’t evade it. In the case of income or sales generated through Bitcoin, it’s general practice to calculate the amount of tax you pay based on the price of Bitcoin at the time the transaction was made.
However, several countries have different tax policies when it comes to taxation of income generated through Bitcoin. I, therefore, recommend you look at the one applicable to your country. Click here for more information about Bitcoin taxation.
What are your thoughts?
Thanks for reading this article! If you bought a real estate with Bitcoin, share your experience in the comment box below.