Real Estate: Buy your home using your crypto as collateral – BeinCrypto

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Real Estate: Instead of selling crypto assets to buy a home, crypto investors can use them as collateral, he explains. Troy HuertaCEO ByBrix.

After several months of soaring prices, the US real estate market may soon calm down. Fed Chairman Jerome Powell announced last week that activity in the real estate sector has weakened.

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In contrast, the Fed’s recent rate hike has had a positive impact on cryptocurrency prices. This bodes well for the crypto market, which has been subject to high volatility for the past few months.

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While their trajectories are likely different, these two seemingly disparate sectors have one thing in common: opportunity. Currently, the real estate market offers crypto investors an unprecedented opportunity to tap into the underserved crypto lending market. They can now use their digital assets to buy real estate.

Real Estate and Crypto

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Longtime investors who have accumulated crypto assets over the years have weathered many storms, including the current market turmoil. Now is probably not the time to sell your crypto assets. However, savvy investors need to find ways to put their crypto reserves to work. Some types of home loans allow investors to use this crypto as collateral to buy a home.

Gradually, players in the industry are building the necessary infrastructure to allow such transactions. This is to give crypto holders the opportunity to maximize the potential of their holdings.

ByBrix is ​​one of these players. This is a recently launched joint venture between crypto app Blimp Homes and DeFi incubator AQRU. ByBrix will guarantee digital assets and allow their holders to use them for property purchases in the UK, Canada, Australia and the United States.

Use your crypto as collateral

Instead of selling crypto assets to buy a house, crypto investors can use them as collateral. This way, they can continue to enjoy any future value in their crypto investments. They also avoid paying possible capital gains taxes as well as transaction costs associated with the sale. Indeed, instead of converting crypto into fiat currency, the platform keeps it safe until the borrower repays the loan.

With this solution, the crypto acts as collateral for the deposit paid to the seller of the house. There are other loans that cover the rest of the purchase amount. (Provided by specialist service providers via ByBrix). This separates home loan from crypto collateral. Therefore, if the home is foreclosed, the collateralized cryptocurrency is unaffected.

To be fully grasped, the opportunity offered by crypto loans will require a lot of training in the real estate and digital asset industries. Indeed, the mechanics of these instruments are nuanced. All stakeholders, from potential borrowers who want to use crypto assets, to intermediaries like brokers and even regulators, will need time and help to adopt this new mindset. In the same way that cryptocurrencies are changing our definitions of money and currency, crypto lending can redefine the real estate industry’s value proposition.

about the author

Troy Huerta is CEO of ByBrix, a financing platform specializing in real estate purchases secured by crypto assets.


All information on our website is published in good faith and for general information purposes only. Any actions taken by the reader based on the information available on our website are entirely at their own risk.

Source From: Google News

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