With the increase in the crypto market, many crypto investors are looking to invest money in real estate. It is not new in the market as experts from the real estate industry say the trend is old, but it is picking up much now.
People dealing in cryptocurrency mostly do their investment in real estate. They are betting big on real estate this year. Since the crypto market is going strong, people who are making perfect money are gearing up to invest it in the safer zone, real estate.
As per the survey performed by the New York Digital Investment Group (NYDIG), 46 million Americans own bitcoin and among them 22% are adults. Although, some crypto investors have expressed concerns regarding the security, custody and volatility of digital assets.
A European investment Manager, Nickel Digital Asset Management, surveyed institutional investors and wealth managers from the US and Europe. They collectively have $275 billion in assets under management. As per the survey, 76% show real concern about the security of their digital assets. 71% of the investors see regulatory measures as one of the major issues in the crypto market.
The scene with Real Estate
Hence, many investors are now looking for investment in the real estate market. They have started investing their bitcoin or other cryptocurrencies into less risky assets. Ben Shaoul, Managing Partner of Magnum Real Estate Group, shared that they have been receiving many requests to sell real estate to crypto holders. Shaoul’s company started doing transactions for real estate in crypto three years ago. The company with the help of the legal team started the crypto transactions with the consent of the regulators.
Jet Real Estate, COO, Eric Hedvat, said that with the growth of the crypto market, BTC payment for real estate is more crucial than ever before. It allows investors to grow with cash flow. Hedvat is also the special consultant with Magnum. Sahaoul also realized that the income that comes from the retail condominium building which was sold for $15.3 million in BTC in 2019 is all credit.
Financial Times and the University of Chicago have also conducted a survey to find out that increasing inflation may make the Federal Reserve raise U.S. interest rates at least two times by the end of 2023. It is important to take care of the money that one has made and invest in a less risky object.
Piper Moretti, CEO and Founder of the Crypto Realty Group, feels that the crypto for reals estate transactions is becoming very common. Her firm currently has a real estate listing for Bitcoin in Tulum, Uruguay, Puerto Rico and Costa Rica. Many buyers purchasing real estate with cryptos are taking loans against cryptocurrency.
Unchained Capital, CEO, Joseph Kelly also confirmed that the firm’s 30-40% of the loan originations go forward to real estate.
Cash is the king
Although cryptocurrency is playing a crucial role in purchasing real estate, some still prefer to purchase in cash rather than using any cryptocurrency. Moretti explained that most of the time, 99% of the people prefer to deal in cash, even if it is a crypto conversion because more likely they will be receiving the cash at closing.
Sunny Singh, Chief Commercial Officer of BitPay has given a breather to the people of $100 million in real estate transactions in the past five years. He also said that crypto transactions can easily be converted into U.S. dollars.