New Zealand real estate industry seems to be embracing cryptocurrency. Digital token enthusiasts can now buy a million-dollar home in Auckland using bitcoin. That might be the first time ever such a purchase will take place in New Zealand. Dean and Rachel, North Shore residents, have put up their four-bedroom Unsworth Heights home for sale.
The property has a $1.225m value in the market. The owners plan to accept partial or full payment in Bitcoin. The couple failed to sell their 16-year-old, architecturally designed home earlier on in the year. However, their announcement was made in an attempt to attract a wider pool of global buyers willing to pay in Bitcoin.
Dean, who chose to hide his surname, acknowledges that BTC is a global frictionless currency. The bitcoin transactions are almost instantaneous. The couple chose crypto to get their property to the widest global marketplace. If the sale goes through in Bitcoin, it would be a first in New Zealand as explained by Liam Collett from Century 21 Collett Realty, Dean’s selling agent.
A fellow Century 21 franchise operating in Wellington in 2017 is known to have agreed to accept Bitcoin payment. This time, the property in question was a $200,000 piece of land located around Kaiuma Bay in the Marlborough Sounds. However, reports indicate that the land was eventually sold in exchange for kiwi dollars.
The Market Conditions
Putting property on sale in bitcoin is all about breaking boundaries and trying something new and different according to Collett. Dean, a graphic designer together with his partner embarked on this strange move after the government banned most foreigners from buying homes in New Zealand last October.
The government ban resulted in an 81% drop in the March quarter’s foreign buyer sale compared to the same quarter last year. Despite that, Collett confirmed that many overseas buyers are still interested in buying New Zealand homes. The interested parties could be Australians and Singaporeans, who are allowed to acquire properties in the country, Kiwi expats, and foreigners with children who are New Zealand residents.
Some potential buyers may have got into bitcoin way before its 2017 meteoric rise. Thus, they can view property as an excellent way to divest from the cryptocurrency. It is now evident that Bitcoin is becoming more prominent in the real-estate market making it an excellent time for the couple to do the sale this way.
Reasons for Accepting Bitcoin
Dean and Rachel hope to use the funds that they get from the sale of their home to buy a new home. They hope to get a new home up the highway where they have relatives. In spite of agreeing that he may incur additional expenses in using any Bitcoin he gets from the sale of this house to purchase another one in Kiwi dollars, Dean believes that cryptos are the way of the future.
Dean claims to have purchased his first bitcoin around two years ago. He termed it a ‘great asset’. He chose to accept bitcoin since it is continuously growing in its global functionality and capacity. Also, institutional investors and banks are gradually moving into the crypto space.
Bindi Norwell, the chief executive of the Real Estate Institute of NZ, said that she knew several properties put up for sale using BTC in their advertising. She added that including the digital currency had turned into a clever marketing strategy that attracted lots of interest. Nonetheless, no sale has ever been settled in the crypto based transactions on her knowledge.
Bindi explained that there were some concerns about whether digital currencies would comply with anti-money laundering regulations. Also, their high volatility causes jitters among market regulators since their values can rapidly change overnight. Collett confirmed that the current value of the Unsworth Heights home in Bitcoin would be done when the sale agreement became unconditional.