Looking for Home-Buying Options? Consider Bitcoin!
You’ve heard of buying points to obtain a lower annual percentage rate, or APR, on your mortgage. You’ve probably even heard of people, who buy items like a dining room table or another piece of furniture, out of a home during the sales process. But, have you heard of buying a home with bitcoin? Have you even heard of bitcoin? This digital currency is accepted for goods and services worldwide. Although it hasn’t made a huge splash in the real estate market just yet, bitcoin may be well on its way to your next home sale agreement. What is required to buy a home with bitcoin? Actually, not much. In fact, bitcoin can be used for any home purchase, as long as both the buyer and seller agree to it. Because it is a relatively new kind of currency, some parties involved in typical real estate transactions—you know, sellers, buyers, title companies and other professionals—may be reluctant to enter into a sales agreement involving bitcoin It’s new and can present some challenges, but buying a home with bitcoin is possible. Just do your research on professionals who are willing to work with bitcoin. What is bitcoin worth? The value of bitcoin fluctuates and changes frequently, which can affect a traditional closing process. Because home sales are advertised at a dollar amount, a buyer who wants to use bitcoin may need to convert their digital currency to dollars to ensure the seller gets their agreed upon price. Once the home sale is complete, the seller can opt to have their profits converted back to bitcoin if they would like. Taxes also present a unique challenge when it comes to using bitcoin to buy a home. Currently, the Internal Revenue Services, or IRS, considers bitcoin to be property. Therefore, it accrues a capital gains tax. It may not be the same as paying real estate taxes, but know that you will be taxed if you use bitcoin to buy a home. Can you make a mortgage payment with bitcoin? This may be a major sticking point for buyers when it comes to bitcoin. Unless you’re planning to pay in full when you purchase a home, bitcoin may not be an option for you yet. At this point in time, you cannot pay a mortgage payment with digital currency. If you’re interested in bitcoin and want to use it to for more than just a few online purchases, the future may be bright for you. Remember, at one point, retailers were reluctant to accept credit cards. Like that plastic we’re now all familiar with, bitcoin may be working its way into everyday purchases—including home sales!
