How to Invest in High-Value Property with Cryptoassets

In 2024, digital assets are not only an appealing addition to an investment portfolio but are also gaining momentum as a means to acquire tangible assets, particularly luxury real estate. The increasing recognition of digital assets as valid forms of payment is ushering in a growing number of real estate agents and lenders accepting digital currency for property purchases.

This article discusses how HNWIs can safely buy a property with digital assets, the increase in cryptoasset realtors, and more.

How to Safely Buy Real Estate with Cryptoassets

High-net-worth individuals (HNWIs) are showing increasing interest in buying real estate using digital assets; however, before engaging in any real estate transaction with cryptoassets, we advise all HNWIs to conduct thorough research. Scrutinise the seller's reputation, transaction history, and the legal standing of the property. Awareness of local regulations is vital, as cryptoasset-friendly jurisdictions are more conducive to secure transactions.

We also recommend that HNWIs use specialised escrow services that cater to cryptoasset real estate transactions. By acting as impartial third parties, these services hold the cryptoassets until predefined conditions are met; this neutralises risks for both the buyer and the seller, ensuring a secure and fair transaction.

Furthermore, engaging legal experts well-versed in real estate and digital asset law is crucial for all buyers. Cryptoasset lawyers can safely guide both the buyer and seller through the process and ensure compliance with local laws.

For HNWIs and realtors seeking a more efficient and tailored service, XEROF offers services such as buying property with digital assets, settlement to third-party accounts with advanced tax optimisation, exchanging digital assets for fiat, and more. Funds exchanged from digital assets to fiat are securely held in segregated wallets, ensuring the safety of transactions. With our on-ramp/off-ramp solutions, users can expect significant cost savings, making XEROF a reliable platform for efficient real estate transactions using digital assets.

Using cryptoassets to buy real estate internationally can bring several benefits. In some countries, like Montenegro and St. Kitts, owning real estate can confer residency or citizenship status. St. Kitts, in particular, is noted for being cryptoasset-friendly, with Bitcoin ATMs nationwide and no capital gains taxes on any investments, including digital currency.

Other markets of interest include:

Spain

According to a recent report, Spain has the highest number of available properties that accept cryptoasset payment. A prime European holiday destination, Spain offers diverse real estate options in hotspots like Alicante, Marbella, and Barcelona.

Thailand 

Thailand follows closely with 227 properties for sale that can be purchased with digital currency. However, it is worth noting that Thailand is the fourth most expensive country to purchase real estate with cryptoassets, ranking just behind the UAE.

Portugal

Portugal claims the third spot, with 130 properties available for purchase using digital assets. The country's allure lies in its splendid beaches and relaxed culture, with Lisbon and Porto hosting the majority of cryptoasset real estate options.

The above demonstrates the growing prominence of digital assets in real estate transactions, offering cryptoasset investors an exciting avenue for global property acquisitions.

Should Real Estate Agents Accept Cryptoasset Payments?

Using digital assets for property transactions offers notable advantages. Firstly, it allows buyers to sidestep additional fees and costs associated with traditional payment methods, leading to a more affordable process, especially for high-value purchases like real estate. 

Cryptoasset payments are also exceptionally fast, eliminating delays in fund transfers. The transparent nature of these transactions facilitates a fair and open bidding process during property acquisitions, creating equal opportunities for buyers and sellers.

However, challenges exist when using digital assets in real estate transactions; for example, digital currency's inherent volatility introduces uncertainty regarding the amount needed to meet the seller's price, as digital asset values fluctuate significantly. 

Despite challenges, it is clear that a growing number of real estate agents are embracing cryptoassets as a payment method for home purchases. The global blockchain in real estate markets is predicted to reach $3,884.8 million by 2028, and, according to a recent report by the US National Association of Realtors (NAR), the percentage of real estate agents comfortable with digital asset payments has risen from 12% in 2020 to 38%. This surge is primarily due to the desire to cater to a more extensive audience and the potential for higher commissions for agents offering specialised cryptoasset-friendly services.

If you are interested in exploring customised solutions for global real estate purchases or want more information about XEROF's third-party settlement feature, please contact us to schedule a meeting.

About XEROF

XEROF is a Swiss-licensed Crypto Gateway that offers exchange services for customers who possess crypto wallets and want to use them as fiat currency to purchase real estate properties and luxury goods.

Learn more about XEROF