Bitcoin is the leading Crypto Currency in the market which saw tremendous growth since its inception in 2009. Bitcoin emerged as the most lucrative asset and is preferred by investors worldwide.
Built using the Block Chain technology, Bitcoin is a peer-to-peer transaction-based open ledger software system, where users control the network. All users share a common ledger and verify that a transaction has occured between two parties. A new Bitcoin is generated when the miners or users confirm the transactions. Exchanges facilitate the buying and selling of Bitcoin through the wallets. Users are able to purchase Bitcoin using normal fiat currency worldwide.
Bitcoin is a decentralized system and is independent of any financial institution or bank. Unnecessary charges and fees can be avoided for local and international sales of goods and services. There are only 21 million Bitcoin to be issued and it is a controlled supply. The total Bitcoin are not readily available and are generated by mining factories which have hardware and software infrastructure.
The price of Bitcoin is volatile and is determined by the network based on the transactions and demand. The current price is $14, 000 and it went as high up to $20, 000. Analysts predict that the Bitcoin is expected to rise up to $100, 000 in future due to the demand and limited supply.
Bitcoin is accepted by large financial units as well as small vendors for purchases. Banks, stocks, trading, coffee shops, book stores, and so on have started accepting Bitcoin as a payment.
Over-the-counter trading and Bitcoin futures trading by different exchanges has started recently. The worldwide taxing agencies are accepting Bitcoin as a valid investment and users are required to report Bitcoin on the income tax returns. Many countries have legalized Bitcoin as a valid currency and countries such as Belarus has made Bitcoin profits tax free for first five years. Encryption and security are the robust features of Bitcoin network which is why it is widely preferred and accepted.
Block chain based property title transfers are also on the rise across the world. Sweden and Brazil are adapting the technology and many custom software solutions such as Ubitquity are available for recording property title transfers. Bitcoin Block Chain can provide a permanent means of record keeping for real-estate transactions.
Traditional real estate industry has seen the Bitcoin acceptance as an additional incentive to lure buyers. Huge inventory has forced builders to look for creative ways to sell. The value of Bitcoin is increasing rapidly and hence buyers are also willing to put their savings in to Bitcoin and buy real estate with the profits generated. Bitcoin Home Builders can sell their properties by accepting Bitcoin and getting the currency in their desired fiat through the Bitcoin exchanges.
Home Builders across the country are seeing increased demand for real-estate. Open land is scarce in high demand areas. Builders are actively purchasing land and constructing homes to cater to the rising demands. Home building is a profitable business and if managed properly, a typical small builder is building three homes per year and generating around $100, 000 from each property sold. Large chain of home builders are also seeing profits in the suburbs of major cities.
Home Builders prefer pre-sold lots for construction to avoid risks and go through real-estate companies for building. The risks of buyer backing out due to lack of fund is mitigated by checking loan pre-approval documents. Home builders also accept cash as a payment if the buyer wants to avoid unnecessary mortgage related fees.
Home Builders have started accepting Bitcoin as a mode of payment around the US and different parts of the world. The popularity of the CryptoCurrency and the availability of exchanges to complete the transactions has made transactions smoother for Bitcoin Home Builders. Austin, New York City, Chicago, Arizona State, and other places have sold real estate with Bitcoin.
Acres of land, penthouses, mansions in different countries such as Australia, Panama, Thailand, Italy, or Dubai can be purchased with Bitcoin. Bitcoin Home Builders can transfer the incoming Bitcoin payment in to their desired currency through the exchanges such as Coinbase and BitPay. Bitcoin Home Builders openly list that they accept Bitcoin payment to encourage more buyers.
Bitcoin Home Builders find the sale process similar to regular real-estate transactions. All the rules related to clearing documents, titles, inspections, verifications, and so on apply. At the time of payment, money is transferred from buyer to seller through the exchanges based on the value of Bitcoin on that day. The transfer may take couple of days based on the exchange. Home Builder can choose to retain the Bitcoin in the exchange wallet or convert the Bitcoin to normal currency and send to their bank accounts.
The simple hassle-free process of Bitcoin payment is preferred by the buyer and seller. The price listing may be different if listed in Bitcoin amount. Bitcoin usually involves smaller quantities such as 50 Bitcoin instead of $700, 000 at the rate of $14, 000 per one Bitcoin. Bitcoin Home Builders also ask the buyers to show alternate proof of payment and mortgage pre-approval in case the Bitcoin payment fails.
Other rules of fair-pricing, privacy, property taxes, reporting to the local counties, sales taxes, and so on apply for Bitcoin Home Builders. Local real-estate agents can be involved through out the deal even if the property is sold through other websites.
Bitcoin Home Builders must follow all rules and pay all related taxes. Here are some tips for successful real-estate deals with Bitcoin.