The year 2021 has seen new opportunities arise where Bitcoin and other cryptocurrencies are concerned. It was this year that saw Tesla investing in Bitcoin and then stating that they would also accept it as a means of payment for their cars. Add to this the previous investments from companies such as Microsoft and the fact that PayPal has also begun to accept Bitcoin in the US, and it becomes clear that this cryptocurrency has entered the mainstream.
The first transaction using Bitcoin was famously for buying a pizza. For this to progress where it can be used to buy cars and slightly expensive ones at that, is nothing short of phenomenal. When it comes to buying a house though, can you really use a cryptocurrency for this? While you will find all the crypto questions answered on this page, we’d like to enlighten you on how, by using Bitcoin, you can indeed buy a house.
Bitcoin and the UK Housing Market
You could be forgiven for thinking that the use of Bitcoin to buy a house was something new, but in fact, it is something that first happened in the UK back in 2017. This involved the purchase of a luxury home in Colchester, Essex. This was a house built by the developer Go Homes and it was valued at £350,000. This Bitcoin purchase was made by a software developer who was in his twenties and had clearly seen the value in the currency. Rather than move into the property, he went on to rent it out and accepted Bitcoin for the rental payments too.
Go Homes seemed to be at the forefront of Bitcoin payments, and the second UK house sale using this crypto took place in Hertfordshire for a 4-bed house valued at £595,000. The group sales director of Go Homes went on to say that he believed it would become commonplace for houses to be bought with Bitcoin over the next 5 years. The first house sale using Bitcoin has also taken place in the USA, with a house being purchased in Texas.
A Move into Luxury
The sale of traditional homes using cryptocurrency provided proof that it was a legitimate form of payment and this then paved the way for high-end developments to go the same way. Not long after the first crypto house sale in the UK, a luxury £250 million development in Dubai was offered for sale with every individual unit accepting Bitcoin as a form of payment. This sparked an interest in American Roy Hiederhoffer who owned a mansion in New York. Valued at $16 million, he put it on the market with Bitcoin being the preferred payment method.
Sales such as these were an inspiration to others and suddenly Bitcoin was becoming the preferred payment method for luxury house sales across the world. It even led to luxury hotels such as the 5 star Dolder Grand in Switzerland accepting Bitcoin as payment for a stay.
How Can You Buy a House with Bitcoin?
Now that you’ve seen that it is possible to purchase a house by using Bitcoin, you may be left wondering how you actually go about it. Certainly, it is not quite as straight forward as walking into a local estate agents and making an offer: traditional agents are not necessarily the most forward-thinking and would rather rely upon fiat currency when it comes to transactions involving property.
Times are changing though. Whilst it is acceptable to go through a private sale where both the seller and buyer agree to use Bitcoin, there are a growing number of estate agents in the UK who are starting to accept crypto too. Agents such as Go Homes, Agape Properties, and Munday’s Estate Agents are all advertising that they are willing to deal in Bitcoin. Across the pond too, agents in the US are showing their willingness to adapt and house sales involving Bitcoin are gaining in popularity.
With Bitcoin experiencing dramatic growth yet again, maybe the next time you purchase a property, this will be the payment method that you choose to use!