Suddenly, Bitcoin Breaks into UK Housing Market as Down Payment

[alyssa85]

https://cointelegraph.com/news/suddenly-bitcoin-breaks-into-uk-housing-market-as-down-payment

It is a first for the UK that Bitcoin can now be used as a down payment in the property market. Co-living pioneer The Collective have announced that they will be accepting the digital currency as a deposit from prospective tenants.

They are also eyeing out rental payments in Bitcoin, but that will only be implemented later in the year.

It is the first time a UK property developer has opened its doors on the famous digital currency, stating that the demand actually came mostly from international customers.
The Old Oak

The Collective's online booking form for its Old Oak living scheme, an ambitious co-living development with 550 rooms, will be accepting Bitcoin as a deposit on the flats.

The standard deposit is £500, which equates to about 0.148 at time of publishing. Additionally, with the volatile nature of Bitcoin seemingly holding back its ability to be utilized as a currency, The Collective has pledged “spot conversion,” which means it will bear any financial risk while holding the deposit, returning it at the original value when the tenancy finishes.

[gentlemand]

It's about time it made some inroads into property, though buying property is by far the more interesting use. I'm sure there are lots of people who'd like to do that. As far as I know a Bitcoin sale in the UK hasn't happened yet though a few have been thrown up for sale.

The idea of co-living sends shudders down my spine but good luck to them anyway.

[Pursuer]

pretty interesting because not so long ago I have actually seen a couple of different topics by different people talking about buying a house with bitcoin. there was actually one person who was thinking about putting up an ad even to find someone who accepts bitcoin for a house.

I still think it is too soon for bitcoin to be used for things this big. because if you buy something worth $100 for example and price fluctuates 20% you won't feel a thing and it won't matter but if you buy something worth $50,000 and price fluctuates 20% you will feel the change! it is $10,000 change.

[gentlemand]

pretty interesting because not so long ago I have actually seen a couple of different topics by different people talking about buying a house with bitcoin. there was actually one person who was thinking about putting up an ad even to find someone who accepts bitcoin for a house.

I still think it is too soon for bitcoin to be used for things this big. because if you buy something worth $100 for example and price fluctuates 20% you won't feel a thing and it won't matter but if you buy something worth $50,000 and price fluctuates 20% you will feel the change! it is $10,000 change.

It's down to the buyer to make their peace with fluctuations. I assume most future sales will be going through somewhere like Bitpay to entice the seller. If the house is 20% cheaper in BTC one month into the future then tough titty.

I seem to remember somewhere fancy in Miami selling for 3000 BTC near the start of the year. Now that would be 800 or so.

I dunno how capital gains would work though. I assume you'd have to cash out a certain amount to pay it.

[xFiber]

It's actually really cool bitcoin finally made it into real estate. Hopefully in the future I won't have to withdraw my bitcoin for dollars and I can just buy my house and lambo with bitcoin.

[eternalgloom]

I'd be very worried that I would not get that deposit back after I'd finished the tenancy, especially if during that time Bitcoins' value has risen significantly.
Landlords always seem to find a few issues to prevent you from getting your deposit back, not evryone ofc, but it has happened to me before.

I'd only do it if escrow was available, afaik some landlords do work with escrow for deposits.

[Gotottack]

I'd be very worried that I would not get that deposit back after I'd finished the tenancy, especially if during that time Bitcoins' value has risen significantly.
Landlords always seem to find a few issues to prevent you from getting your deposit back, not evryone ofc, but it has happened to me before.

I'd only do it if escrow was available, afaik some landlords do work with escrow for deposits.

I agree, the landlords will likely say at the end that, "I will return to you the value of your bitcoins at the time you deposited them to me" which means the landlords are going to return only the equivalent bitcoins at the time it will be returned. What if it raised by 10 times, and the tenant will only get 10% that means.

[Voice-Of-Reason]

let hope this trend picks up for other goods and services

[alyssa85]

I'd be very worried that I would not get that deposit back after I'd finished the tenancy, especially if during that time Bitcoins' value has risen significantly.
Landlords always seem to find a few issues to prevent you from getting your deposit back, not evryone ofc, but it has happened to me before.

I'd only do it if escrow was available, afaik some landlords do work with escrow for deposits.

The thing is - if you can prove that the address you sent your coins to belongs to the landlord, then the blockchain is a rock solid evidence that you sent the coins.

[aoluain]

Good news for bitcoin for sure ! and great to see more adoption too.
 
Im not sure what exactly the Co-living thing is, if anyone wants to read about "the collective"
that is mentioned in the article here is their site> https://www.thecollective.co.uk/our-story

I am reading through their story get a better handle on it.
They might be accepting Bitcoin but more interestingly, is anyone spending with them?

[gentlemand]

Good news for bitcoin for sure ! and great to see more adoption too.
 
Im not sure what exactly the Co-living thing is, if anyone wants to read about "the collective"
that is mentioned in the article here is their site> https://www.thecollective.co.uk/our-story

I am reading through their story get a better handle on it.
They might be accepting Bitcoin but more interestingly, is anyone spending with them?

Dunno about this place but there used to be a website that correlated co living facilities. It sounded utterly horrendous. One place charged you to visit for 2 years before they'd let you buy a room there. Others insisted on 20 hours of kitchen or garden work per week.

Lord knows why anyone would pay money to live amongst a bunch of righteous assholes but good luck to them if they want to.

[xaviervilla]

https://cointelegraph.com/news/suddenly-bitcoin-breaks-into-uk-housing-market-as-down-payment

It is a first for the UK that Bitcoin can now be used as a down payment in the property market. Co-living pioneer The Collective have announced that they will be accepting the digital currency as a deposit from prospective tenants.

They are also eyeing out rental payments in Bitcoin, but that will only be implemented later in the year.

It is the first time a UK property developer has opened its doors on the famous digital currency, stating that the demand actually came mostly from international customers.
The Old Oak

The Collective's online booking form for its Old Oak living scheme, an ambitious co-living development with 550 rooms, will be accepting Bitcoin as a deposit on the flats.

The standard deposit is £500, which equates to about 0.148 at time of publishing. Additionally, with the volatile nature of Bitcoin seemingly holding back its ability to be utilized as a currency, The Collective has pledged “spot conversion,” which means it will bear any financial risk while holding the deposit, returning it at the original value when the tenancy finishes.

Wow! That is a pretty good news to hear! Not only for bitcoin lovers but for all crypto currency users! This opens a lot of doors leading to the future. I just wish that this kind of improvement and acceptance with crypto currencies would also happen to our country soon. Because the bitcoiners here are increasing more and more and this would be a great solution to poverty because it doesn't require a lot from a person.

[gajebo]

https://cointelegraph.com/news/suddenly-bitcoin-breaks-into-uk-housing-market-as-down-payment

It is a first for the UK that Bitcoin can now be used as a down payment in the property market. Co-living pioneer The Collective have announced that they will be accepting the digital currency as a deposit from prospective tenants.

They are also eyeing out rental payments in Bitcoin, but that will only be implemented later in the year.

It is the first time a UK property developer has opened its doors on the famous digital currency, stating that the demand actually came mostly from international customers.
The Old Oak

The Collective's online booking form for its Old Oak living scheme, an ambitious co-living development with 550 rooms, will be accepting Bitcoin as a deposit on the flats.

The standard deposit is £500, which equates to about 0.148 at time of publishing. Additionally, with the volatile nature of Bitcoin seemingly holding back its ability to be utilized as a currency, The Collective has pledged “spot conversion,” which means it will bear any financial risk while holding the deposit, returning it at the original value when the tenancy finishes.

I think this is the best step of a developed country.
my confidence will be many other countries that follow the footsteps undertaken by the UK.
this increases the positive value for crypto itself.
I'm sure many new investors are increasingly looking at bitcoin and alcoin.

[alva5763]

While I do not see a problem with buying using bitcoin I think rental is more difficult. If a property was being rented at £800 per month or 0.2 bitcoin at time of agreement then if price of bitcoin increases then tenant will have to pay more using the same amount of bitcoin. A tenant could not be sure how much in £'s they would be paying monthly.

[Mometaskers]

I wonder how they would get around the increase in value though. For example you deposit BTC1000. Since the landords would probably be thinking in comparison to the fiat value, if the price soar, then the deposit should have been much lower. Your bitcoin basically slept in their hands. Heck, they could have already made a profit out of it if they trade.

I'd be very worried that I would not get that deposit back after I'd finished the tenancy, especially if during that time Bitcoins' value has risen significantly.
Landlords always seem to find a few issues to prevent you from getting your deposit back, not evryone ofc, but it has happened to me before.

I'd only do it if escrow was available, afaik some landlords do work with escrow for deposits.

I agree, the landlords will likely say at the end that, "I will return to you the value of your bitcoins at the time you deposited them to me" which means the landlords are going to return only the equivalent bitcoins at the time it will be returned. What if it raised by 10 times, and the tenant will only get 10% that means.

You telling me the landlord might only give back the fiat value? Well better make it clear in the contract that he will give back the exact bitcoin AMOUNT.

[darkangel11]

I'd be very worried that I would not get that deposit back after I'd finished the tenancy, especially if during that time Bitcoins' value has risen significantly.
Landlords always seem to find a few issues to prevent you from getting your deposit back, not evryone ofc, but it has happened to me before.

I'd only do it if escrow was available, afaik some landlords do work with escrow for deposits.

The thing is - if you can prove that the address you sent your coins to belongs to the landlord, then the blockchain is a rock solid evidence that you sent the coins.

You can, especially if you're an international client, as it was mentioned in the article. There has to be some written communication between the landlord and yourself, where he sends you his address. Also all deposits and bank account numbers should be clearly mentioned in the agreement that you sign before receiving the keys. A bitcoin address would fall into the same category.

[LeGaulois]

This is another proof that there are demands from customers as well businesses to use solutions crypto oriented. And more demands we will see, more solutions will be added because when there is a market, there is at least someone to makes bank on it

[darkangel11]

I agree, the landlords will likely say at the end that, "I will return to you the value of your bitcoins at the time you deposited them to me" which means the landlords are going to return only the equivalent bitcoins at the time it will be returned. What if it raised by 10 times, and the tenant will only get 10% that means.

You telling me the landlord might only give back the fiat value? Well better make it clear in the contract that he will give back the exact bitcoin AMOUNT.

If it's not specifically mentioned in the agreement, all deposits should be returned in their exact form. If the landlord was given a payment in BTC he should return the same exact payment, unless stated otherwise. They were not dealing in fiat or fiat value of BTC. Even the fees can't be deducted, you paid a fee to send it to the landlord and are expecting him to pay back the exact amount. If he screws up and sends it with a too low fee, the loss is on him.

[BADecker]

What was the price of Bitcoin back in the beginning of 2017? Wasn't it around $250? Why did it surge so that in only 6 or 8 months it has reached almost $5,000 (even though as of this writing it's back down to $4350)? Wasn't it because Japan added Bitcoin to their money system, legally, that started the big rise?

The housing industry is failing. People don't like the high prices of homes. They would rather live in travel trailers than buy a $200,000 or more home. But owners can't reduce their prices, because they would take a big loss doing so.

The answer is Bitcoin. A Bitcoin infusion should help housing sales just like it stabilized the Japanese economy. But what will happen to Bitcoin?

Be prepared for a gigantic rise in the price of Bitcoin. Buy low. Buy now. And when Bitcoin reaches $10,000 or more, you will be able to afford to sell your house cheap.

[Lmaooo]

Nice, that is a great news for Bitcoin community.
We are looking forward to see more countries implementing the use of bitcoin in the future.