Cryptocurrency has been the new trend regarding investments. Everyone knows and is talking about it, from very wealthy individuals to even my grandma!
However, when it comes to compare, real estate exists, while cryptocurrency is up in a cloud (which many of us still do not understand how it works). Cryptocurrency has a volatility that we will never experience with real estate. Real estate may vary in value, but it is a tangible asset; it will always be there and will most likely continue to increase its value for the rest of your life. On the other hand, we have seen how one sketch in Saturday Night Live can completely change the value of cryptocurrency. And if you do not know what I am talking about, I invite you to look up the episode where Elon Musk made a joke about Dogecoin, making it lose 30% in value overnight.
Now, if you are not of those faint of heart, investing in crypto could be a good idea. One day it can be worth $0 and the next $60k, but do not forget that the opposite can also happen because there is no backup for crypto, making zero a possibility. Knowing how to ride the wave is crucial because you need to know when to jump in and when to let go.
So if you are now thinking that you should transfer your crypto to buy a house, here are some pointers to remember:
There are still no loan products that can use your earnings in crypto as proof of income. You can, though, use what you have in crypto as collateral or reserves to help get your mortgage approved.
If you take your funds out of crypto to buy your house, there will be very likely capital gains taxes that you will have to pay.
Unless the seller agrees or asks for it, crypto is still not allowed as a form of payment for a property.
We see crypto moving forward and is here to stay, but we still have ways to go because the risks with hacking and lack of protection continue to be way too high.
If you are still unsure that real estate is where you want to invest your hard-earned money, let’s talk about it! I would love to guide you in this process and help you decide what is best for you and your family.
