You've probably seen news stories like "An anonymous buyer bought a villa in Spain for $25 million in bitcoins". It does happen. In recent years, houses and apartments are sold for cryptocurrency so often that it has ceased to be an infopod and has become commonplace.
That said, not every house can be bought for digital currencies. Have you wondered where buyers are finding these homes?
In this article, we'll break down two ways to buy real estate with cryptocurrency and recommend some good platforms.
Buying Real Estate With Cryptocurrency
Crypto Emporium is the most popular site for buying and selling real estate for cryptocurrency. At the time of writing, the marketplace has 336 properties priced from 0.84 to 2612 BTC. The site is similar to the usual real estate search sites: you can sort by property type, location, price, number of rooms, and so on. The only difference is that each of these properties is available for sale for crypto.
Most of the houses are for sale in the US, EU countries, Thailand and Costa Rica.
Buying a house for bitcoins has a number of advantages:
- You can buy real estate anonymously.
- You can avoid unnecessary expenses on currency conversion, commissions, bank transfers and intermediaries when buying real estate in another country.
- Depending on the country, you can save on taxes when buying real estate with crypto.
- The fact of buying real estate with cryptocurrency can attract media attention. In certain cases, this can be useful. For example, if you are an influencer, it will be free PR for you. Or, if you are buying a house as an investment, media attention can increase its price in the future.
And what about the second option?
Tokenized Real Estate
The first method, with all the advantages listed above, has disadvantages. The main one is that you will still have to go through all the stages of buying real estate. Those who have already gone through this know how long and complicated it is.
Tokenization offers a simpler alternative for real estate investors. The idea is that the house is not sold in its entirety, but in parts. For example, a 300 square meter house can be broken down into 300 NFT or 300 security tokens. These parts can be sold online, through smart contracts.
Here are the advantages of such an option:
- Tokenized real estate is sold online, via smart contracts. This is much, much easier than going through all the bureaucratic hell.
- For the same amount of money, instead of one property, you can buy stakes in different properties, thus diversifying your portfolio.
- Digital tokens are more liquid. They can be sold easier and faster than a whole object.
There are about a dozen popular tokenized real estate platforms on the market. One of them is Home Key.
The project offers investment packages for a period of 3 to 14 months with a yield of up to 73% per annum. If you choose a 14-month package, you can not only earn money but also get ownership of a real new house built using modular technology.