MOUNTAIN VIEW, Calif. – In Mountain View, a completely remodeled 2-bedroom, 1-bathroom condo hit the market this week and immediately caught the attention of the neighborhood.
The condo at 2000 Rock Street, listed at $999,999, hit the market on Wednesday, and the seller is offering cryptocurrency deals in addition to cash and loan deals.
Cryptocurrency is the type of decentralized digital currency that has made some investors rich over the past decade. And for some, it is their nest egg, full of earnings, which, if sold, would impose heavy taxes on them. Buying a home with its cryptocurrency can allow a buyer to defer taxes, says Re/Max realtor Greg Bryant, the listing agent for the Mountain View condo.
“Being able to go with businesses like mine that are able to help them diversify and defer taxes, it’s fantastic to be able to retain purchasing power and pay taxes later,” Bryant said.
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And for the seller, being open to cryptocurrency offers allows the seller to stand out and accumulate competing offers to sell at a higher price. Bryant said Re/Max was only aware of two other previously listed Bay Area properties that were open to accepting cryptocurrency offers.
However, with the high volatility of cryptocurrency, there are risks for the buyer to make an offer entirely in cryptocurrency. They should liquidate a cryptocurrency investment when buying real estate, and bitcoin, for example, is experiencing a drop in price.
“For most people holding cryptocurrency, now is not the time to liquidate right now,” said Faramarz Moeen-Ziai, an East Bay mortgage adviser at Cross Country Morgage.
With interest rates still rock-bottom, Moeen-Ziai says the safest option when buying a home is always to borrow, and recommends potential buyers check with their real estate agent and lender when doing so. are planning to do a real estate transaction with a cryptocurrency.
Still, he has seen a noticeable shift over the past six months towards more borrowers dealing with cryptocurrency.
“We have a lot of borrowers who are really trying to stretch and squeeze to try to get into the home they want,” Moeen-Ziai said. “And all of a sudden my clients, who were holding crypto, had an incredible windfall and a huge amount of money in those accounts, and wanted to use it as a down payment to increase their purchasing power.”