A Melbourne home is available for sale and the owner is willing to get the payment in Bitcoins, if the deal goes through then it would the first real estate deal in Australia through Crypto currencies. Australia’s property market is on the rise in the past decade and with that there have been lot of interest from International Investors about the buying and selling of property in Australia, specially Chinese investors but this time around it would be interesting to see what sort of offers owner receive from different buyers.
The two-storey property is located in Melbourne’s outer-west at The Basin and boasts 5-bedrooms and a 6-Star Energy Rating.
Property builder Robert Gadd who constructed and is now selling the house first became involved with bitcoin 6-12 months ago.
He said that cryptocurrency is heading in a more positive rather than negative direction.
He said while the property is designed for a young family, giving the option of payment by cryptocurrency means anyone could choose to buy it as bitcoin buyers are often “unconventional investors.”
“It’s always nice to be at the trailblazing end of doing something that hasn’t been pioneered before,” Mr Gadd said.
“It’s just another thing to set the property apart from other properties in the area and a different way of marketing it.”
John Garnett, Director of listing real estating agency Harcouts-Boronia, says this is the first time he has ever listed a property with the option to use bitcoin as part-payment.
He said that while there are no real issues in relation to tax or stamp duty as long as the contract shows the full purchase price, other legalities are still the hardest obstacle to overcome.
The vendor is asking for $820,00-$895,000 (AUD) for the property, or 66-72 bitcoin, it seems like Crypto currency is the future of real estate market as well, recently some London and Dubai properties were also sold in Bitcoins, that shows the emergence of Bitcoin as a leading payment method for real estate sector globally.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share