Property Investing with Bitcoin!
Property Investing with Bitcoin – A new era?
I have spent some time over the past month looking at the impact Bitcoin might have on the future of property investment or indeed on money! No wonder some of the financial institutions are worried. Is it just a craze or is it in fact a revolution as some are predicting? How does is relate to property?
Bitcoin owners looking to Invest in Property
This weekend there were articles in a number of newspapers suggesting that mortgage companies are refusing to allow Bitcoin owners to use their Bitcoins as a deposit due to worries over money laundering. So if you were thinking that you could buy property by taking a mortgage out with your Bitcoin and using it as a deposit you’ll be disappointed as you can see from these headlines.
On the other hand though, for those who have enough Bitcoin to buy in full. We’ve got this headline that occurred in December in the daily Telegraph that the first Bitcoin homes have sold in the UK and this was, these were bought by an early adopter who is a miner of Bitcoin, he is un-named and has purchased a £595,000 pound home. there are sellers who are willing to sell for the cryptocurrency.
Some of the places where Bitcoin is being used to buy property include a £250m project in Dubai which is set to be the first major development where you can purchase in Bitcoin. You can buy it in ordinary money but that they’ve put it up for sale announcing they will accept Bitcoins. Then we’ve got the same in Melbourne. A Melbourne property in November could have been the first property transaction where a family put their home up for sale with Bitcoin as well as Australian dollars.
CNBC carried a report that that a company called Manage Go, a company that’s been providing landlords and tenants with other online rental services through mobile. Now they are accepting rent in Bitcoin.
It would work by paying online or via an app with the Bitcoin, Manage Go then converts that to dollars through a digital broker, then the landlord gets the payment in dollars.
So let’s just look at a chart relating to Bitcoin at the moment as it stands and you can see here that there’s been a huge growth over the past 12 months. This is a yearly bar chart, there’s been a dip, some volatility since the end of December when it hit an all-time high of 20,000 and it’s dipped down, and it seems at present that it’s stabilised between 12 and $14,000 dollars. Some people think this is part of the decline and that it will go back down, perhaps to around 10,000 dollars and others believe it will recover and go back up but again that’s not what this video is about.
That’s what could happen and you’ll see here that even in London a property developer developer became the first to allow it’s tenants to pay their deposits in Bitcoin. So who knows, rents and property sales may move to Bitcoin in the in the future here. There are a growing number of companies that are starting to accept payment in Bitcoin.
Is it a bubble or is it the future? Well, there are both sides, as with anything like as volatile as Bitcoin there’s some people who believe it’s a bubble waiting to burst, But it could actually be something that’s going to grow and grow and grow and some people believe that the level it’s now $12-$14,000 is a fraction of what it’ll be worth in the future. Whichever side of that argument you’re on this article is just acknowledging that Bitcoin can be used to buy and sell property, if you’re willing to pay in cash.
If you’re an early adopter of Bitcoin or if people have Bitcoin they may be looking to invest in property and take part in the property growth market rather than stay within a high-risk investment.
Only time will tell and time will also tell on the rules and regulations that come in to stop people buying with Bitcoin as inevitably they will.