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Cryptocurrency is still not fully integrated into our lives. However, this doesn’t mean you shouldn’t look for the best way to use it! And, if you’re interested in a home purchase, our pro tips for buying a house with Cryptocurrency might be just what you’re looking for.
The various ways you can pay when buying a house with Cryptocurrency
Paying the seller directly with your Cryptocurrency
The first way of buying a house with Cryptocurrency is also the most straightforward: simply find someone willing to trade their property directly for crypto. That is probably also the most appealing way to finance such a purchase. After all, buying an ideal home for you and your family is an expensive endeavor. Setting aside enough ‘real world’ money for it can be difficult. On the other hand, the potential for crypto to grow and turn into a considerable sum is always there. Trading it directly for a property also eliminates many inconveniences and annoyance of other methods associated with a crypto transaction. Managing your finances also becomes easier, since you are just drawing on a single source of your money.
Taking out a mortgage using your crypto assets
Many people are unaware that taking out a mortgage with the assistance of your crypto assets is possible. There are two ways crypto directly benefits your mortgage. First, it may be easier to qualify for a mortgage in the first place. In addition to other creative ways to improve your credit score, crypto can do a lot to help you. The only tricky part is that crypto does not directly count as currently in the eyes of most banks out there. Instead, it is considered an asset, much like your gold or holdings investments. The second way to use crypto for your mortgage is to pay monthly installments. Again, not every bank lets you do this, but it’s almost always preferable to using a ‘real world’ currency. It’s also a nice fallback in case of financial trouble.
A conversion of crypto to cash to secure a purchase
Another option when buying a house with Cryptocurrency is converting your crypto into cash. That is considered by most to be the preferred method since you don’t need to look for sellers or banks that accept crypto. Of course, this comes with a few caveats, as with all things crypto. First, your newly acquired money will typically need to spend at least two months in your bank account before it can be used for a home purchase. Second, laws about crypto are still vague and uncertain, and your newly acquired cash may or may not be subjected to a capital gains tax. You should research your own state’s handling of crypto before committing to this option! Otherwise, you might have much less cash to play with than expected.
The risks of buying a house with Cryptocurrency
Few sellers are willing to consider crypto payments
The first drawback of buying a house with Cryptocurrency is that not many people are willing to handle it. Crypto is still seen as an untested and risky way of operating transactions, even in countries that widely use crypto for purchases. As such, you’ll likely spend much longer looking for the right seller-property combo than you’d like. That might eventually force you to trade your crypto for cash, even if you dislike the idea.
The fluctuating and unstable value of crypto
Of course, there’s a good reason why crypto is viewed with such suspicion, and this brings us to the number two reason you might want to reconsider a crypto home purchase: changes in crypto value. A crash can occur while you wait for the long process of finalizing a home sale to be over. That means you might be suddenly left with far, far less money than you’d originally had. And you’d either have to scramble to secure enough funds or give up on the purchase altogether. Which, depending on the step in the process you’re at, can mean that you’d be found in breach of contract. Instead, the experts from Pro Movers Miami recommend you consider paying for other home purchase costs, such as moving, cleaning, packing, etc., using crypto, and saving cash for the home.
The conveniences of buying a house with Cryptocurrency
Potential for a bigger and faster purchase
Realistically speaking, you may have more crypto on hand than you have actual money. Especially if you got lucky and the value of your Cryptocurrency grew considerably. That would allow you to finance a home purchase that is typically out of your reach, whether this means paying for a home or putting down a sizeable down payment. At the same time, having enough crypto on hand means you can finalize the process much faster. Most of the waiting associated with a home purchase is tied up in mortgage approval.
Transforming unstable assets into something more permanent
The second reason you should seriously consider buying a house with Cryptocurrency is that it lets you transform a risky asset into a solid one. We haven’t shied away from the disadvantages of crypto. And switching that out for something as reliable as home ownership is highly appealing! Even if you invest in a rental property or a weekend home, it’s still very much worth it. The same applies even if you’re using crypto as a backup, such as relying on it when you cannot afford your mortgage payments.
Deciding on whether you want to buy a house with crypto
With our pro tips for buying a house with Cryptocurrency, you can determine if it’s your best choice. Still, as long as you remember the disadvantages of crypto, we know you’ll be able to make it work!
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