Tag: buy and sell house
In 2020 it will remain a complex and not to be underestimated topic: Buying and selling real estate with Bitcoin and Co. – because what was unthinkable years ago, i.e. being able to buy a property with a cryptocurrency and sell house fast process, is increasingly becoming a trend.
There are not yet many brokers who mention in their advertisement or exposé that the property can also be paid for with Bitcoin, Ether, or Ripple. However, according to experts’ estimates, it will only be a matter of time. Ultimately, it is already possible today – even if mainly only theoretically.
Could you also pay with Bitcoin in Germany?
In September 2017, a real estate deal caused a stir – a property in Coral Gables, Miami / USA was sold for 1,600 Bitcoins. At the time that was converted to a price of around 6 million US dollars. At that time, the house was offered the option of paying for it with the cryptocurrency Bitcoin.
Would that have also been possible in Germany? The experts still disagree on this. As a rule, the notary confirms that the purchase price has been paid in full and sent to the seller. The notice of conveyance can then be deleted so that the property then becomes the property of the buyer. However, the legitimate question arises here as to whether the notary would also understand receipt of the purchase price as accepted if it had been transmitted in the form of crypto money. It would probably be about which agreement is in the notary contract. If it is stated here that the purchase price is to be deposited in euros, then it would probably not be possible to pay with a cryptocurrency.
Read also: Is it worth investing in Ethereum?
Why cryptocurrencies are a promising alternative in the US?
The type of payment made headlines in the United States at least – and that was the broker’s plan, so to speak. Because if you want to focus on a story, you have to be creative. But in the USA it may even be understandable why there are more and more objects that can be paid for with crypto money.
While Germans use the IBAN system, which has many advantages, there is no comparable offer in the USA. Higher transactions result in extremely high fees. For a transfer that has a volume of 100,000 US dollars, a bank charges an average transaction fee of 4,000 US dollars. Thus, in a real estate business, it may happen that a fee of around US $ 10,000 has to be paid.
So if you want to buy a property with Bitcoin, Ether, Ripple, or with Bitcoin, there is no bank transaction – and there is no subsequent transaction fee to be paid. That means you save money when you pay with Bitcoins or another cryptocurrency.
Paying with Bitcoin does not constitute a tax reduction reason
However, a few aspects should not be ignored. “The biggest problem that we have already experienced was the exchange of very large amounts, as the sellers usually prefer to be paid in the traditional currency,” said Natalia Karayaneva, the managing director of Propy, one Real estate agency. “If the payment takes place in a cryptocurrency, the sum must then be sent in smaller parts, since the transactions made are not reversible. Paying in a cryptocurrency is still a very risky undertaking, as it is not possible to reverse the transaction. ”
In addition, “If a property is paid for with Bitcoin, it is a taxable event. In other words, it is not correct that the use of a cryptocurrency is a tax deduction, ”Karayaneva said.
There may be a few aspects that speak in favor of buying with Bitcoin, but the downsides should not be completely ignored. Above all, it is also about the fact that Bitcoin is volatile. This means that within hours the course can develop to its disadvantage or advantage.