Bitcoin and cryptocurrency are continuously prevailing hot topics in the market nowadays. Every small deal is getting accessible with cryptocurrency. From buying shares to cars from popular companies including Tesla, the applications of cryptocurrency are expanding their legs everywhere.
But the question is has cryptocurrency reached the real estate field? There are both pros and cons to buying property using cryptocurrency. The major issue buyers face while dealing in bitcoin is paperwork. It becomes hard to explain to buyers they have earned the money for their home. The lenders are not concerned with clarifying the police about the same which may create further issues.
In this article, estate agents in Welling will introduce the fact that even real estate agents accept cryptocurrency or not. You will also get aware of if you can obtain a mortgage with cryptocurrency or not. So before getting the answer to the question- can you buy a home using cryptocurrency in the UK- let’s first discuss what cryptocurrency exactly is.
What is cryptocurrency?
Cryptocurrency is a kind of digital currency that has nothing to do with the government or banks. It is independently owned and has quick transactions without any additional charges.
Do you know that there is only 21 million Bitcoin presently? In the UK, you can buy a home that is averagely priced at only 7 bitcoins. Created in 2009, bitcoin lost its value by up to 64% till the last week of December in the year 2017. You need to ensure the transactions are real quick while buying the real estate property at least before the real value of cryptocurrency falls.
Do lenders or real estate property agencies accept bitcoins?
We can discuss the pros and cons and other aspects of buying property using cryptocurrency. But the real deal depends on the fact that whether or not the lenders or agencies are ready to accept bitcoins. Well, Essex is a live example where two homes were bought in the year 2017 consuming bitcoins.
After that, several houses got dealt in cryptocurrency. Still, money laundering cases restrict real estate agents from fully trusting customers and avoiding dealing with bitcoins. Although it is not well prepared in the real estate field, crypt currency has achieved many real estate properties specifically in Cambridge, England like countries.
Can cryptocurrency be used in obtaining a mortgage?
Many real estate agents are straight reluctant to deal with properties in cryptocurrency. But since the hefty countries are taking a step forward towards bitcoin, mortgages are starting to be obtained using cryptocurrency. The top companies, including Halifax and Barclays, have closed several deals of mortgages using cryptocurrency.
A conveyancer and a crypto deal-willing lender are all you need to obtain a mortgage. You need to hire a lawyer or expert to prepare clear papers of crypto ownership to show that the money that you are using to buy a home belongs to you and that you have not obtained that money by any false means or laundering. The process is pretty time-consuming, which left lenders intrigued with the fact that why they should get enrolled in such a long process.
Can I buy a home using the concept of cryptocurrency?
The concept of buying a home in the UK with cryptocurrency is gaining popularity. Companies, including Microsoft, PlayStation, and Tesla, have started taking digital payments for real estate. The scarcity of regulation and changes in the value of cryptocurrencies is the biggest turn-off while dealing with bitcoins.
Hence, this was all about the examination of whether or not you can buy a home in the UK using cryptocurrency. We get to know the present situation and future usability of bitcoins in the real data industry. Although it is a fact that there are many disadvantages to buying a house using cryptocurrency, we can’t deny the fact that the future is raising its hands toward this new concept with top companies dealing in it.