Kimberly Rosales explains the benefits of buying real estate with cryptocurrencies

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Investment in Bitcoin (BTC) and other cryptocurrencies is growing significantly among savers, and therefore the use of these digital assets is increasingly widespread in different sectors of the economy. It is even possible today to buy real estate through these instruments. Kimberly Rosales, who has been increasing her knowledge of cryptocurrencies for years, explains what benefits can be obtained by investing in real estate through these digital assets.

Even though these particular buying and selling operations are still registered with the fingers of the hands, the industry affirms that today you can buy a property with cryptocurrencies, and in the near future everything indicates that this form of transaction will become very common, says Rosales. Therefore, as the purchase and sale of real estate with BTC and cryptocurrencies is a reality in several parts of the world, it is necessary to know the procedure to carry out a transaction considered safe for the buyer and seller, complying with all the corresponding legal and tax aspects.

One of the reasons that are used as a basis for this type of concrete business to take off through virtual payments is that there are several countries where daily transactions with cryptocurrencies are quite high. According to real estate sector referents, this type of transaction allows transforming an extremely volatile investment, as is the case of virtual currencies, into a safe investment, as is the case of bricks.

One of the key ways to advance in a sale and purchase with digital currency, according to Rosales, is that, obviously, the seller of the property must accept the payment of its real estate with cryptocurrencies. For this reason, it is essential that the registered broker details in the publication the acceptance of this type of means of payment, suggests this expert.

Then, the decisive point is that if the seller wishes to have the physical dollars after the transaction in which he received BTC and other cryptocurrencies, he has to be willing to perform a simultaneous exchange operation, paying a commission that ranges between 1% and 4% in the FinTech companies available in the market. In other words, an extra cost that will have to be taken into account when setting the final price of the property.

Also, the seller and the buyer must have, or open, accounts in a digital wallet for cryptocurrencies. It is very simple to do so, where the most used are Binance, Lemon, Ripio, Buenbit, Belo, Satoshitango and Defiant, says Rosales.

At the contract level, it is recommended to detail the data and identification of each of the digital wallets, which is the information equivalent to the bank transaction ID, to avoid problems. In addition, the parties must agree on which cryptocurrency they will use for the operation, for which it is advisable to anchor it in stable digital currencies that follow the 1 to 1 parity with the dollar, such as USDT or DAI, indicates the specialist.

On the other hand, if volatile currencies are used, such as Bitcoin or Ethereum, it is necessary to provide for solvency clauses and the assumption of the exchange risk by the buyer, in the event of possible drops in the price of the currency, warns Rosales. The parties must declare that they are the holders of each of the digital wallets involved and, likewise, the buyer declares that it has the availability of the amount of digital coins necessary to complete the transaction.

According to Rosales, the amount of the transaction in BTC and cryptocurrencies will correspond to the sale value, as in the usual operations. It will be estimated at the time of the completion of the sale by applying the official dollar rate of that day. This type of indication of the final amount will be made despite the fact that at the time of the transfer, the payments will be made in a stable cryptocurrency or in BTC. And therefore, in the latter case, the digital reference value may change.

The most important thing is that the real estate sale and purchase are instrumented by means of a public deed of assignment-exchange. The buyer is obliged to give an intangible asset, which is the digital currency, and the seller must deliver the property of the real estate accepting the such currency as part of the payment. In this act, the buyer transfers to the digital wallet of the seller the amount involved, and when this amount impacts the wallet of the seller, both parties sign the public deed before the notary.

About Kimberly Rosales

Kimberly Rosales is an entrepreneur and tech aficionado who, early on, understood the full capabilities cryptocurrency could offer. She founded ChainMyne, a FINTRAC-registered company, in 2020 as a means to offer an easier method for accessing digital currency, as well as to empower cryptocurrency holders. While the majority of her time is occupied by ensuring her business ventures constantly run smoothly, when she does have some free time, she enjoys spending time with her family and exploring new locations.

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