Buying property with crypto

[wtfmidn]

I've just joined the forum earlier tonight (UK), so hello to everyone.

I'm not rich but have sufficient bitcoin/crypto to be wondering about the possibility of buying a modest house/property/land if crypto continues to rise next year and property prices collapse significantly. So I was wondering about the potential to buy property with crypto, not just here in the UK (preferably), but globally?

Property prices are currently high and (crazily) going higher (here), but if the anticipated collapse happens next year I want to know my options, especially if crypto goes to new ATH during that period, as I hope/anticipate. Can you buy a house with crypto, or do I need to convert to fiat (£ etc.) before I do so? What are the tax repercussions, even if I can? Etc..

Any advice/thoughts welcomed, lest I skewer myself next year. Enjoy your weekend.

[1714167575]

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[1714167575]

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[jackg]

There are rumours the government may double cgt in the UK. At the moment:

If you make more than your personal allowance in income - you have to pay 20% cgt
if you make less than that in income you have to pay 10%

(I think it's based off income but not 100% sure).

You buying a house with bitcoin will depend on a buyer being willing to accept it. Its happened before afaik but might an unlikely goal to secure any property you want with it.

If you pick a solicitor right you can probably use bitcoin as a proof of funds but sales also take 6 weeks to go through so you likely won't get an optimal price to pay keeping your funds in bitcoin during that time (and bitcoin is less reversable and less traceable than fiat do there's a risk there too). 

Just try to keep enoughg % aside to cover the taxes.

[wtfmidn]

There are rumours the government may double cgt in the UK. At the moment:

If you make more than your personal allowance in income - you have to pay 20% cgt
if you make less than that in income you have to pay 10%

(I think it's based off income but not 100% sure).

You buying a house with bitcoin will depend on a buyer being willing to accept it. Its happened before afaik but might an unlikely goal to secure any property you want with it.

If you pick a solicitor right you can probably use bitcoin as a proof of funds but sales also take 6 weeks to go through so you likely won't get an optimal price to pay keeping your funds in bitcoin during that time (and bitcoin is less reversable and less traceable than fiat do there's a risk there too). 

Just try to keep enoughg % aside to cover the taxes.

Thanks for the response. Yes, I heard that rumour about CGT in the UK.

What I really want to know I suppose is IF a seller in the UK was willing to accept bitcoin/crypto as a currency for their property, would the UK government allow it and [then] how would the tax journey pan-out in comparison to the £? I mean, if somebody in the UK (or anywhere, I guess) accepts X amount of bitcoin for their property, does it save me any money in the long-run by paying for it with bitcoin when the tax man is George Orwell's nightmare vision for the 1980's?

The bottom-line, I suppose, is am I able to purchase property with cryptocurrency and how much money if any can I save by doing so?

[Lucius]

wtfmidn, it is definitely possible to buy real estate in the UK with Bitcoin, and as far as I know there are no legal obstacles to this. What you need to do of course is pay property tax (if required by law), and of course that you can prove the origin of the Bitcoin you own. What I would especially warn you to be extremely careful with this way of buying is because fraudsters are everywhere and it is very easy to make a website and sell properties that are not yours for crypto.

As far as I can see there are several real estate agencies from the UK that mediate between sellers/buyers who want to sell/buy by paying with BTC.

Currently, in the UK and Northern Ireland, a handful of estate agents currently accept Bitcoin in principle, or have measures to broker a cryptocurrency deal. These include Go Homes, The Collective, Agape Properties, Hagan Homes and Munday’s Estate Agents. Aggregator Rightmove accepts property listings on Bitcoin in principle.

[zasad@]

I have heard that in European countries there are very high taxes on real estate. If you are planning to purchase real estate for business (renting out), then this can turn into grief due to the COVID-19.
If you are interested in buying real estate in Russia, then there are very daunting real estate taxes and Russian citizens and foreigners pay the same tax rates.
And there will be no problems with the exchange of bitcoins for rubles.

[Findingnemo]

It seems the tax rates for crypto purchase are high there si better convert it into fiat to avoid paying extra tax amount

There are some articles available in the google search but better visit them by yourself to get clear idea about buying a property with bitcoin but there is no restriction on bitcoin to buy anything so you are good to go.

[sheenshane]

@Lucius was right and I tend to agree with that reply, in the UK it's possible nowadays to purchase a property using Bitcoin but what I'm not really sure is how you will deal with the taxes along the way. I haven't heard any news or information about how the UK government collect tax for cryptocurrency transaction with regards to real estate.

I suggest for you to check it first with The Financial Reporting Council in order to have full knowledge about your plan and of course not to be scammed as well since this is barely new and scammers are always at large that could take advantage of the situation.

[jackg]

Thanks for the response. Yes, I heard that rumour about CGT in the UK.

What I really want to know I suppose is IF a seller in the UK was willing to accept bitcoin/crypto as a currency for their property, would the UK government allow it and [then] how would the tax journey pan-out in comparison to the £? I mean, if somebody in the UK (or anywhere, I guess) accepts X amount of bitcoin for their property, does it save me any money in the long-run by paying for it with bitcoin when the tax man is George Orwell's nightmare vision for the 1980's?

The bottom-line, I suppose, is am I able to purchase property with cryptocurrency and how much money if any can I save by doing so?

Yeah you can use bitcoin just as you can fiat in the UK and wider Europe (the EU class it as a currency and I think the UK will continue to do that after/if we leave).

You'll probably have to go through similar aml regs and might need to prove how you got the funds but if you've got exchange transactions or something that'll probably be enough.

I don't know how it'd save money though?. Unless you're trying to speculate on an increase in market value.

[Theb]

Thanks for the response. Yes, I heard that rumour about CGT in the UK.

What I really want to know I suppose is IF a seller in the UK was willing to accept bitcoin/crypto as a currency for their property, would the UK government allow it and [then] how would the tax journey pan-out in comparison to the £? I mean, if somebody in the UK (or anywhere, I guess) accepts X amount of bitcoin for their property, does it save me any money in the long-run by paying for it with bitcoin when the tax man is George Orwell's nightmare vision for the 1980's?

The bottom-line, I suppose, is am I able to purchase property with cryptocurrency and how much money if any can I save by doing so?

If you are looking at saving or maximizing your Bitcoin when it comes to buying real estate it will always depend if you are able to find a direct seller of the house and not go through any real estate agents out there because if you go to them expect that there is an added premium when it comes to purchasing those houses. Trying to find a direct seller I think is one of the hardest parts out there especially if you are looking for a seller who will accept Bitcoin directly since most of them will be looking for the most liquid asset and that is cash. However this is still not the end since you still have the option to liquidate your Bitcoin into cash and try and compare if you will save more money as compared to buying the houses from one of real estate agents you have.

On a side not I think Go Homes Family in UK is one of the well known real estate developers out there that is known for accepting Bitcoin directly from their buyers.

[fuzebase]

I've just joined the forum earlier tonight (UK), so hello to everyone.

I'm not rich but have sufficient bitcoin/crypto to be wondering about the possibility of buying a modest house/property/land if crypto continues to rise next year and property prices collapse significantly. So I was wondering about the potential to buy property with crypto, not just here in the UK (preferably), but globally?

Property prices are currently high and (crazily) going higher (here), but if the anticipated collapse happens next year I want to know my options, especially if crypto goes to new ATH during that period, as I hope/anticipate. Can you buy a house with crypto, or do I need to convert to fiat (£ etc.) before I do so? What are the tax repercussions, even if I can? Etc..

Any advice/thoughts welcomed, lest I skewer myself next year. Enjoy your weekend.

We can help you buy beach , houses , business with bitcoin in the caribbean. We have many apartments with front beach and also hotel for sale . Most owners are from UK , Russia, spain ,Italy and they accept Bitcoin,Ethereum USDT . Property title take usualy 30 to 45 days to transfer to the new owner .

[DdmrDdmr]

<…>

We’ve got an ongoing (*) case study on the Spanish local board (see Me he comprado un piso con bitcoin). A person from that board recently bought a flat in Spain, and paid using Bitcoin a sum that is equivalent to just 100K€. All legally backed, notary to testify and so forth, but … the amount that was actually paid in BTC was written down in the deeds as cash, rather than BTC.

It therefore seems slightly on the hush-hush side when Bitcoin comes into the equation, and the notary hinted (without detailing) that payments stated in BTC are rather troublesome. The flat was cheapish, and cash can still be used between individuals for large sums (as opposed to when one side is a company), although above 100K would have triggered further burocracy.

(*) I call this an ongoing case, since come 2021, the buyer will have to deal with her income/tax reports, and the 100K equivalent noted in the purchase as cash (which was really BTC) may bring surprises.

[gentlemand]

As ever someone actually asking for crypto for their property will either be asking a stupid price for the honor of paying in it, or it's a dump. Most of the places have been dumps. People actively accepting it for properties are still outliers in the extreme.  

You're certainly not going to save any money. What you would be doing is cutting out all of the worry about selling a large amount and exchanges and banks having kittens which is something I'd very much like to avoid. You'll still have to pay your CGT.

You'll have to be proactive. Find somewhere you like and then, unless you miraculously turn that old lady seller into a Bitcoin fan over an afternoon, call somewhere like Bitpay who facilitate large buys as well as retail things. You pay Bitpay. They pay the seller. And it's job jobbed. You'll have to hit the seller until they agree as most people will be pussies about this.

[usekevin]

I've just joined the forum earlier tonight (UK), so hello to everyone.

I'm not rich but have sufficient bitcoin/crypto to be wondering about the possibility of buying a modest house/property/land if crypto continues to rise next year and property prices collapse significantly. So I was wondering about the potential to buy property with crypto, not just here in the UK (preferably), but globally?

Property prices are currently high and (crazily) going higher (here), but if the anticipated collapse happens next year I want to know my options, especially if crypto goes to new ATH during that period, as I hope/anticipate. Can you buy a house with crypto, or do I need to convert to fiat (£ etc.) before I do so? What are the tax repercussions, even if I can? Etc..

Any advice/thoughts welcomed, lest I skewer myself next year. Enjoy your weekend.

Welcome to the forum.Next year, you can find a huge fall in the price of property. If the luck favors you, you may have a chance to buy a property. Buying property is easy with your hardwork and maintain it will be the tough task. The price of bitcoin had reduced again, so it will be good chance to buy again with less price.You can sell those next year and can buy property with it.

[hugeblack]

The problem will become in taking legal measures. Many countries and courts consider Bitcoin a commodity and not recognized money, and therefore the commodity must be evaluated, and then a high-income tax is imposed on it.

If you succeed in finding someone who accepts crypto as a method of payment, it will be easier, but for a third party to enter to perform the transfer process, it will be complicated and cost you more money, indicate the source of the money and pay taxes on it.

[YOSHIE]

Any advice/thoughts welcomed, lest I skewer myself next year. Enjoy your weekend.

You are too hopeful / delusional, which human will know the fate of someone in the next year, no, your prediction could be crazy if not achieved based on the forecast.

If you start and invest in a 1-2 year term that's good, in the crypto world you can't just think positive, negative effects must also be considered.
If I had Bitcoin assets or fiat money, I would halve it.
1. Investing in Bitcoin.
2. Business with fiat money deposits.
most likely, I can still buy property [1], with fiat from business, [2], Bitcoin / crypto if in 1-2 years it goes up.
Negative effect if next year Bitcoin goes down what can you do, nothing, however, business profits can be counted on for property, depending on the business you open.

Two things to watch out for in bitcoin the price goes up & down, if it goes up it doesn't matter all your dreams are achieved, on the contrary, you will cry.

[gentlemand]

Two things to watch out for in bitcoin the price goes up & down, if it goes up it doesn't matter all your dreams are achieved, on the contrary, you will cry.

Sheesh. Think positive.

Anyway OP may well be in a similar situation to people who have been around for a while. They have enough, and have had enough, to do something like this in a dull market. Some will have still had enough for a big purchase when it was at the absolute bottom. Obviously it's better for them if it's exploding.

[Lorence.xD]

The problem will become in taking legal measures. Many countries and courts consider Bitcoin a commodity and not recognized money, and therefore the commodity must be evaluated, and then a high-income tax is imposed on it.

If you succeed in finding someone who accepts crypto as a method of payment, it will be easier, but for a third party to enter to perform the transfer process, it will be complicated and cost you more money, indicate the source of the money and pay taxes on it.

Looking for this reply, because I want someone that thinks about the same problem that I saw about this dilemma. I do not have that much knowledge about property laws but I think that cryptocurrency is not covered in those laws, I think that fiat is the most viable method because you will be taxed for the property. You can exchange your crypto to fiat if you want because right now, there isn't a lot of real estate that have a mode of payment that is crypto friendly which they have no control of because the government has to back it up too.

[gentlemand]

Looking for this reply, because I want someone that thinks about the same problem that I saw about this dilemma. I do not have that much knowledge about property laws but I think that cryptocurrency is not covered in those laws, I think that fiat is the most viable method because you will be taxed for the property. You can exchange your crypto to fiat if you want because right now, there isn't a lot of real estate that have a mode of payment that is crypto friendly which they have no control of because the government has to back it up too.

You can pay for a house with amputated limbs if the seller will accept them. It's entirely between you and them. The form of payment is none of the government's business. The taxman would still try to find a way to tax your amputated limbs somehow. They don't like barter very much. Crypto is defined enough in most places for it never to get away with that.

Most places will still have a transaction tax of some sort which is a separate payment between you and the government.

[ololajulo]

Some projects are coming up with idea especially from Europe but am concern with the timing both for the project and investors. Investment today in real estate wont give the ROI this time next year with the bull market in sight. The choices and the decision of investment is coming up everytime with most traders I ran into lately, as a plan towards the bear market. They should give option for both investment with cryptocurrency and fiat

[countryfree]

Unfortunately, it's illegal to buy property in the EU with BTC. To those who are not familiar with this business, it's also illegal to pay in a foreign currency like the US dollar, or to pay cash save in one country.  Even if the buyer accepts BTC, the transaction must be in the currency which is legal tender in the country, and the price shall be written in the contract. Sorry, but there's no choice.