Topic: [2017-11-16] Bitcoin Bringing Hype to Real Estate Market (Read 2075 times)

Currently there is no vehicle in the real estate industry that keeps things strictly on the blockchain and in a coin. It will have to be converted to the native fiat currency for the contract/legal purposes. But that's due to the nascent nature of cryptocurrencies and antiquated government contract laws. This will change I believe in the future and to say that the selling of real estate is impossible is incorrect. There are several companies out there that are trying to bring the thought processes about that the selling of real estate for cryptocurrencies can happen.

Selling real estate with bitcoin is impossible. Such transactions require the conclusion of a contract and determining the price of real estate in the national currency. It is a prerequisite for determining the amount of taxation. You can certainly negotiate with the seller, but the documents of this transaction will be in local currency.

I don't think that its hype because it is already real. Those real state company or broker has see something in bitcoin that they are taking advantage of. And I'm thinking that maybe those real state company has also vested interest in bitcoin. That's why they are promoting and accepting bitcoin as mode of payment. And mind you, real state cost little, they are really for high end clients. So the more real state company accepting bitcoin the better for our ecosystem. We might see a big jump next year, when one big clients of them bought there property with bitcoin. Let's see how this pans out.

I remember the likes of ATLANT,REAL. Agreed with you. If the Price is right then it is definitely worth it, Hyping the marketing using Bitcoin is a good move though but it should be advertised and used well, as what he said, Bitcoin is volatile, a minute after buying with Bitcoin and a dip may happen, it would be identified as an "unwanted discount" lol but seriously that would be a risk on their profit, With that reason they should implement their own range of Selling price to adapt Bitcoin's volatile nature.

Well, if the price in Bitcoin is right then it is worth it. And if the seller is also a speculator he can continue on holding the Bitcoin expecting that the value would soon rise. otherwise, the seller can easily convert it into fiat money to be safe. Real estate is one area where the popular blockchain technology can be integrated and we are already witnessing many ICO project along this route.

Cryptocurrencies, mostly Bitcoin, are starting to entrench themselves in all sorts of places, and one of those is the property market. There have been many cases of houses - from modest Grimsby abodes to Notting Hill mansions - that have been given a Bitcoin price tag by their sellers.

There has to be something to it, as many real estate agents are seeing some surprising advantages to simply slapping a ‘Bitcoin accepted here’ sticker on the front door. Of course, the housing market and the transfer of property is exactly the type of market that is ripe for a Bitcoin-styled disruptive take over, but as it stands, is it worthwhile to sell one’s house for Bitcoin?

Magical marketing
One thing that is plain to see is those who decide to place their houses for sale in Bitcoin are suddenly inundated with media who want to push the story of adoption. The £17 mln mansion in Notting Hill has seen unprecedented interest since it went on sale in October. Lev Loginov, co-founder of property firm London Wall, which is selling the property, said:

"Last week we had 15 viewings. It's coming from Asia. I don't think we've had anybody older than 30."

Even a small and unassuming abode in Grimsby, on England's Northeast coast, garnered media attention across the globe. Cryptocurrencies are at the stage where they still elicit a “wow” factor when they crop up in new markets, and that makes them newsworthy. However, as more people do it, the media will likely move on.

A new market for new investors
As previously mentioned, those who are showing interest in buying investments as big as a £17 mln mansion are all young. Again, this makes sense as the adoption curve for the digital currency is much higher among young adults.

In the early days of Bitcoin, those who knew about and invested in Bitcoin were typically young and technically-savvy. Those are the early adopters who were buying Bitcoins by the tens, if not hundreds. Those same coins are now worth many, many times more, so much so that they can be spent on something like a house - Bitcoin used to be worth barely enough to buy pizza.

Loginov adds that it is early miners who own large numbers of Bitcoins:

"It’s lots of young people who got involved in cryptocurrencies at an early stage. Most of them made money from mining cryptocurrencies, and basically they're looking to acquire assets."

A gimmick
It looks like a Bitcoin property market could be exactly what young, up-and-coming crypto investors need. Such a market would be far removed from the usual red tape that comes with acquiring a house for fiat. However, some believe the selling of houses for Bitcoin is just a marketing gimmick.

Saurabh Saxena, founder of Houzen, thinks that people who invest in property are doing so for low-risk returns. This does not sit well with your typical Bitcoin investor’s risk profile. Saxena said:

"I sincerely believe that Bitcoin as a currency or exchange medium is not sustainable. It's purely a marketing gimmick. Developers typically raise money from pension funds or private equity. When a pension fund invests in real estate, they would typically expect a return of anywhere from 8 to 10 percent. Real estate is a low- to medium-risk asset class, and offers low to medium returns. Bitcoin is extremely volatile, and hence very, very high risk as a transaction medium.”

source: https://cointelegraph.com/news/bitcoin-bringing-hype-to-real-estate-market