Patrick Iturra, May 4, 2022
Crypto-currency’s emergence has been of no surprise for anyone since the gradual succession over time has built up trust in investors. Investing in crypto-currency is unproven growth. People are still keen to use bitcoin anyway.
With the growing interest among people to invest in cryptocurrency, there has been a rapid increase, becoming more integrated with providing different forms of investments.
This blog section is dedicated to crypto real estate, by which I mean the impact of cryptocurrencies on the real estate market. As a strategic investment advisor for the last 24+ years, I have worked with multiple clients. Using my experience, I am sharing my thoughts on the impact of crypto mortgages on real estate assets.
The role of crypto in real estate has been an emerging business for quite some time now. Since crypto-currency is now used to purchase anything (if both the buyer and seller agree), real estate is the same.
Both buyer and seller have to come together to the same page to use crypto-currency as a mode of transaction. To learn more about it, let’s see how crypto-currency affects the real estate market.
How is crypto-currency affecting the real estate market?
Bitcoin has its dominance, and one of the significant ways it is affecting the real estate market is by providing new and diverse platforms for property buying and selling. A recent study shows a prominent number of people that are buying properties through bitcoins.
Here’s how crypto-currency has overall positively affected the real estate market as of now-
Creating new tenets for real estate:
One of the significant benefits crypto-currency has given to the real estate market is creating new platforms for sales. Buyers and sellers do not need an intermediary like using a bank for transactions and can deal directly through crypto-currency.
Less likeability of fraud:
Crypto blockchain is a safe way to avoid any potential fraud. Increasing technology makes it easier to keep transactions safer and fraud-free with growing technology.
Cryptocurrency works in a way that makes it pretty transparent. Providing every property its digital identity cryptocurrency offers transparency to the entire procedure.
Is crypto-currency the future of real estate sales?
With mortgage capitalization and the emergence of crypto-assets, the future is here. Experts predict crypto-currency to be the primary mode of transaction in the future. The process is more convenient and gives better chances of profitability.
People in the US are buying significant properties through crypto-currency payments, which only shows how it is a digital asset of our future. Earlier in real estate, only the properties that would sell on total payments were sold through crypto-currency. Still, as time passed, crypto-assets involved mortgages secured through crypto-currency.
Crypto transactions are no doubt more secure and transparent, but the whole concept of crypto-currency is still new to many people, so it can be complex to deal with the minor details of each transaction.
Transaction details in crypto:
Crypto-currency is still a learning concept for buyers and sellers, each transaction is unique, and details need to be studied carefully. The mortgage itself is a complex procedure, and it requires a lot of little pieces of information to be noted! When crypto-mortgage is in the process, buyers and sellers need to pay more attention to the transactions.
The matter of confinement:
Custody matters are always of primary attention when it comes to real estate. In crypto-currency, crypto-custody is a procedure that secures the property from any probable harm—especially theft and getting irrationally charged.
For this purpose, crypto-transactions are secured through a third party that looks after your crypto for you and acts as a guardian to your crypto-assets. For example, a crypto investor can choose to hand over the custody to a third party which is an external source, to take care of the mortgage and the complete documentation for you.
Real estate transactional cost and cryptocurrency:
Cryptocurrency has seemingly reduced the cost of transactions in real estate. Bitcoin has dominated the home listings, showing its increasing value in real estate. Usually, the more significant and high-priced houses are sold through bitcoins, as the buyers want to reduce the cost of transactions for them.
Real-time crypto offices have increased the reliance on crypto-currency among buyers and sellers in real estate. Especially with commercial properties, sellers want to visit the crypto-offices and make final deals physically.
The transactions in crypto-currency are safe and transparent and cost a lot less than conventional transactions.
Mortgage and crypto-currency:
Mortgage in crypto-currency is still a new concept. It only shows the growing value of crypto in the real estate market. It wasn’t long ago when people would struggle with using crypto-currency for mortgages and down payments, but now it is becoming a preference of many. Buyers can even use crypto for down payments now.
In crypto-mortgaged properties, the interest rate is adjusted over time depending upon the price of crypto. Since a big part of people’s wealth is invested in crypto now, the use of crypto in building assets is also increasing likewise.
Crypto transactions have made it easier for investors to make international payments easily and helped them reduce the added cost. The taxes and unforeseen add-up charges that have always been a trouble for investors are relatively reduced by dealing in cryptocurrency.
Investors are only keen on the lack of experience in crypto-transactions and real estate experience. Fluctuation in cryptocurrency’s value is a part of the game, and if you’re willing to invest in crypto assets, you need to have better knowledge of what the future holds for it.
Experts are pretty optimistic that even with all the fluctuations in its value, crypto-currency will still be an emerging mode of investment in the future and especially in real estate.
Real estate investors are benefiting from crypto-investments a lot more than conventional investments. And the rise is expected to continue in all its bloom.
This was my coverage of the impact of cryptocurrencies on the real estate market. If you are looking to invest in the real estate market, I am here to help you!!
Feel free to contact me here, and I am ready to take on any questions and guide you through buying the right real estate property.
Patrick Iturra, Asset Manager at Estate Investments Group
Business development is the ideas, initiatives, and activities that help improve a business. My experience results in your business’s increased revenue, expansion, and profitability by building strategic partnerships and making strategic business decisions.