How Can You Use Cryptocurrency to Invest in Real Estate?
May 19, 2020

How Can You Use Cryptocurrency to Invest in Real Estate?

Cryptocurrencies have been rising and attracting people for a while now. Digital currencies are entering into the practical world. Surprisingly, every major market is starting to accept cryptocurrencies for the exchange of goods and services. So there is not a single segment in the society that has been not been influenced by the cryptos. One major segment that now a part of the digital marketplace is real estate. Cryptocurrencies are transforming the real estate into a more technologically stable sector. People are buying selling homes in digital coins and tokens from cryptocurrency real estate. 

Hence, the trends are going to take a complete turn for real estate businesses. This will be a complete guide on real estate’s that accept cryptocurrencies. Also, the different ways in which you can use cryptos to invest in real estate. 

Cryptocurrencies And The Real Estate Market: 

Certainly, cryptocurrencies have been changing trends for the whole world. Cryptocurrencies have made a strong impact on all traditional systems like banks, stock exchanges, buying and selling of assets only with paper money, direct collection of money in return of goods, and survival. To put it differently, every sector and business of the world has been experiencing the waves of the crypto market. As a result, all sectors are depending upon cryptocurrencies, so are the real estate’s. Hence, because of the digital currencies, we can spot tokenized real estate now. 

Did you ever imagine buying your home from a virtual currency? Well, you can do it easily now.

The real estate business certainly involves the buying and selling of property. These businesses usually used traditional methods to make deals and contracts. But, with the digital trading platforms, they make use of various cryptocurrencies to make the payments digitally.  

The digital way of buying goods and services brings several advantages for real estate businessmen. The blockchain is modernizing the whole market by including smart contracts, digital financial ledger, data security, safer and quicker exchange of goods and digital currencies, etc. Hence, the involvement of cryptocurrencies in real estate is beneficial for investors, developers, and the IRS. Some cryptocurrency exchange software is involving special coins only for the real estate marketplace. 

How Are Cryptocurrencies Affecting The Real Estate Market?

Cryptocurrencies have been changing things for the real estate market. Truly, benefitting all the people involved in the cryptocurrency real estate. When listing down the benefits of incorporating cryptos in real estate, the list is long. 

Few reasons why cryptocurrencies are affecting cryptocurrency real estate are:

Making Real Estate A Liquid Marketplace: 

The real estate business is a time-consuming business. Therefore, the real estate business is illiquid. With cryptocurrencies, investors are able to decrease the amount of time spent on completing a deal. Thereby, making the real estate a liquid asset. 

For instance, one can avoid lengthy paperwork, gathering a team of brokers, buyers, and sellers, etc with the help of Blockchain technology. 

Building An Efficient Transaction Process:                       

The transaction process of cryptocurrencies is very satisfying. It provides a streamlined process of transactions along with fractional ownership. With fractional ownership, blockchain makes it possible for investors to pool their funds in order to acquire a single property. 

Investors can buy and sell fractions of properties as a token with the use of an application. Also, investors get an easy, quick and effective transaction process on cryptocurrency real estate

Eliminating The Need For Intermediaries:

Real estate businesses come with a long list of professionals for the buying and selling of assets. To make a deal, one needs to come across multiple brokers, lawyers, and banks. For this reason, there is a waste of time and money. The blockchain technology helps in eliminating the need for multiple intermediaries by cutting them out. Hence, saving money of the investors those are part of the real estate market. From dealing with the payment of property it is all done digitally. So cutting out the intermediaries will result in saving time, money, and efforts. 

For example, a person wants to buy a house, all the processes will be done online. Listing the property for the buyer, making payments to the agent, and completing all legal documentation is done by crypto exchange software.

Providing Complete Trust And Security: 

Decentralization is one of the most key features of the cryptocurrency market. The decentralization helps the investors to get complete information about their funds and transactions. The platform comes with a verifiable and censorship-resistant option for sharing information between investors. 

For instance, you are an investor in cryptocurrency real estate. Now you will get access to all security features to help you rely completely on the blockchain technology. You have smart contracts and valuation details feature to secure your assets. 

Reducing The Costs Of The Real Estate Market: 

Real estate transactions come with several other costs. With the help of cryptocurrencies, one can minimize costs to a large extent. 

To clarify, the investor reduces maximum costs. Because there are no intermediaries, no commission or professional fees, no inspections costs, no registration costs, no loan fees, and no taxes

Helps In Connecting With Online Trading Platforms: 

The real estate business involves coming in contact with the buyers and sellers of property. As blockchain trading platform introduces new ways to trade real estate. Crypto exchange Software lists the property for the buyer, helps in making payments to the agent, and compiles all legal documentation. Real estate companies partner with these cryptocurrency exchanges to increase the chances of trading digitally. 

For instance, 

ATLANT is one of the topmost real estate platforms with blockchain technology. On this site, crypto coins help in buying and selling of property. The digital real estate platform facilitates transactions, enables the tokenization of assets, and even helps in liquidating property by selling tokens on the blockchain platform. The facility to exchange tokens for fiat currency is also available on the online platform. 

Ways To Invest In Cryptocurrency Real Estate: 

Cryptocurrency brings a lot of ideas for new and old investors to invest in the blockchain-based Real Estates. Some of the ways to make money in real estate are:

Buying and Selling with Cryptocurrency: you buy a real estate property, make changes to it, wait for its value to increase, and then liquidate it.

Rent in tokens: you purchase real estate property like a house or an apartment. Then rent the property on an annual basis. You receive the rent of the property from the tenant every month. Besides you wait for the market value of the property to rise.

Real Estate Investment Trust (REIT) using Crypto: you buy shares of a REIT company. Then wait for its dividends to go to your bank account. After a few years, you sell your REIT shares at a higher price than you bought it from.

People are coming up with blockchain-based consulting companies, property listing platforms, property management software, building real estate cryptocurrency exchange software, etc. Hence, the demand for investors and investments in the digital marketplace is rising. 

How To Use Cryptocurrency To Invest In Real Estate? 

The first step to make a Cryptocurrency investment is the buyer and the seller agreeing for the transactions to take place in cryptocurrency. There are chances of huge risks as the crypto market is known for its volatility. So in order for a deal to take place, both parties should be aware of the best things of the cryptocurrency business, along with worst. 

The first real estate transaction was a single-family home in Texas. The seller wanted to immediately convert Bitcoins into dollars using BitPay. This is because the prices of the coins were high. so they a global bitcoin payment service provider, to complete the transaction. 

Where cryptocurrency real estate comes with lots of benefits it also includes some risk. Thus, make sure that the second party is trustworthy. 

The next step is to go for smart contracts. Platforms like Ethereum help in making smart contracts. These are signed cryptographically. Also, no third party is involved in the contract.

Once done, make the payment with the help of your cryptocurrency. If you are the buyer, get access to your new house. In case you are the seller, then avail your payment in cryptocurrency. If the prices of the coins are high, exchange those for money. While if the prices are low then wait for the perfect time to exchanges your cryptocurrencies for money.

Conclusion: 

Cryptocurrencies are relatively new technologies most people are still trying to understand. Nonetheless, a good amount of development is clear in the crypto market. The digital market seems to benefit the real estate sector sooner rather than later. Using cryptocurrency for real estate can bring significant changes for the businessmen. 

It is likely to attract people to lessening the transaction time, simplifying the payment process, increasing trust and security, and many more great features.  

With this, cryptocurrency real estate is likely to face big boon in the future. Start investing in real estate with crypto coins if you are familiar with the cryptocurrency and want to start a real-estate business.