Bitcoin For Brownstones: You Can Now Use Digital Currency To Buy New York Real Estate

Tyler Durden's picture




 

Having doubled off the post-PBOC-ban-and-Fed-Taper lows, Bitcoin, trading at USD910 currently is becoming increasingly ubiquitous as a payment method for many businesses. The latest, as NY Post reports, is Manhattan-based real-estate broker Bond New York, is "using Bitcoins to help facilitate transactions." With overseas money-laundering as a key support, and Manhattan apartment sales setting a record in Q4 for volume of transactions (+27% YoY), we suspect the acceptance of Bitcoin will merely ease the Chinese (or Russian) ability to transfer funds directly into NYC housing - blowing an even bigger bubble.

 

 

 

Via NY Post,

The bitcoin has gained a foothold in one of the hottest business sectors in the country: Manhattan real estate.

 

Bond New York, a Manhattan-based real estate broker, has started accepting the digital currency for real estate transactions, The Post has learned.

 

Bond New York believes it is the first real estate brokerage firm to accept bitcoin.

 

“Real estate brokerage is a service industry,” said Noah Freedman, a co-founder of Bond New York. “Our job is to make real estate transactions easy for our customers. Bitcoins are just another mechanism to help people facilitate transactions.”

 

Several larger real estate brokers are not sold on the idea and have no plans to set up bitcoin accounts any time soon.

 

“We don’t accept them, and we have no plans to accept them,” Pam Liebman, CEO of the Corcoran Group, said Friday. “We prefer the American dollar.”

 

“Bitcoins could be here today and gone tomorrow,”

But it is that perspective that could indeed be lost on the burgeoning foreign interest in moving money overseas (into US real estate)... (as we noted in September)

In August 2012, when isolating one of the various reasons for the latest housing bubble, we suggested that a primary catalyst for the price surge in the ultra-luxury housing segment and the seemingly endless supply of "all cash" buyers (standing at an unprecedented 60% of all buyers lately as reported by Goldman) is a very simple one: crime. Or rather, the use of US real estate as a means to launder illegal offshore-procured money. We also identified the one key permissive feature which allowed this: the National Association of Realtors' exemption from Anti-Money Laundering provisions. In other words, all a foreign oligarch - who may or may not have used chemical weapons in their past: all depends on how recently they took their picture with the Secretary of State - had to do to buy a $47 million Florida house, was to get the actual cash to the US. Well good thing there are private jets whose cargo is never checked.

But now, with the acceptance of Bitcoin, we would imagine the "funds" transfer process is even easier... blowing what is already a bubble... (via Bloomberg)

Manhattan apartment sales surged in 4Q, setting a record for yr-end transactions, as prospect of rising interest rates and prices pushed buyers to make deals before purchases became costlier.

 

Sales of condos and co-ops jumped 27% from yr earlier to 3,297, highest 4Q total in 25 yrs of record-keeping, according to report from Miller Samuel Inc. and Douglas Elliman Real Estate

 

There’s a concern that homeownership will be more expensive and therefore the time to act apparently is now,” said Jonathan Miller, president of Miller Samuel

 

...

 

Median price of Manhattan transactions that closed in 4Q climbed 2.1% to $855,000

Into an even bigger one...

 

 

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Sat, 01/04/2014 - 15:58 | 4300113 Seasmoke
Seasmoke's picture

Imagine selling a brownstone for 2,000 Bitcoins. And after closing realizing you sold it for $4,000USD. 

Sat, 01/04/2014 - 16:03 | 4300117 CH1
CH1's picture

Sell your bullshit somewhere else.

More likely you find you're massively rich in a year or so.

Sat, 01/04/2014 - 16:49 | 4300183 IridiumRebel
IridiumRebel's picture

Where is the most reliable place to buy bitcoin?

Sat, 01/04/2014 - 17:03 | 4300204 Scarlett
Scarlett's picture

Fonestar = Xenofrog  

Both accounts for bashing BTC, each with their own style.  

Sat, 01/04/2014 - 17:30 | 4300246 fonestar
fonestar's picture

I am definitely not Xenofrog so stop with the conspiratorial BS.  How have I ever bashed Bitcoin?  I have been saying Bitcoin is going to five, six and seven figures since $50 BTC and I am still saying that.

Sat, 01/04/2014 - 19:47 | 4300498 Scarlett
Scarlett's picture

As a proponent of Bitcoin, your account does way more harm than good.  You're unable to explain BTC in a rational manner, and you infest all posts, just like xenofrog.

Sat, 01/04/2014 - 20:00 | 4300540 fonestar
fonestar's picture

Hardly.  Bitcoin wins whether people on ZH (or anywhere else) "get it" or not.  I'm just here saying we are going to win and damn the rest to hell.  And also, I noticed many of the people who were attempting to slander Bitcoin don't even bother with these threads anymore.  Doubtlessly, no small thanks to fonestar.

Sat, 01/04/2014 - 20:15 | 4300577 DoChenRollingBearing
DoChenRollingBearing's picture

.

fonestar wrote: "Doubtlessly, no small thanks to fonestar."

 

Without doubt fonestar, without doubt...  

:)

Sat, 01/04/2014 - 20:21 | 4300590 nmewn
nmewn's picture

Scarlett, speaking truth to power.

There is a big difference between those "fighting the man" & those just in it for a quick buck.

Sun, 01/05/2014 - 02:11 | 4301205 gorillaonyourback
gorillaonyourback's picture

Who owns the most bit coins. US government.

How much 10% outstanding.

How do u destroy bitcoin? Buy them all up or confiscate them..

Well u all should dwell on that. Lolololololol

Sun, 01/05/2014 - 05:31 | 4301321 TheHound73
TheHound73's picture

Gov't has confiscated about 150k coins.  About 1.25% of the 12million BTC in existence.  They have indicated they will auction off the coins after trials are complete following normal procedures for seized goods.

Sun, 01/05/2014 - 13:32 | 4301851 dark pools of soros
dark pools of soros's picture

weren't you suppose to scare everyone shitless a week or so ago nmewn???  remember how you said you are legion with your buds?

yeah, just keep blowing nonsense out your asspipe..  zeroaction

Sat, 01/04/2014 - 17:19 | 4300227 jbvtme
jbvtme's picture

IR...on a similar subject, how do you convert phyzz into bitcoins?

Sat, 01/04/2014 - 20:08 | 4300556 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Please allow me...

First, never sell your gold!

But, if you have to, sell it at your LCS (Local Coin Shop) for $, then buy BTC for cash from someone you know (or see further below for my own response to Iridium Rebel).

Sat, 01/04/2014 - 20:38 | 4300628 DosZap
DosZap's picture

DoChen,

Agreed,

Please allow me...

First, never sell your gold!

 

To do so is committing self impoverishment WHEN the mkt tanks, and it will in 2014, HUGE.

Sat, 01/04/2014 - 17:31 | 4300244 Musashi Miyamoto
Musashi Miyamoto's picture

localbitcoins.com

Sat, 01/04/2014 - 17:35 | 4300250 Bunga Bunga
Bunga Bunga's picture

Coinbase. Works as promised.

Sat, 01/04/2014 - 19:39 | 4300469 hmmtellmemore
hmmtellmemore's picture

Coinbase or Kraken.  Mt Gox and Bitstamp are a pain in the balls to add/remove usd.

Sat, 01/04/2014 - 20:33 | 4300500 willwork4food
willwork4food's picture

Plus they want your ID, proof of address, bank account and a blood sample.

Sat, 01/04/2014 - 18:37 | 4300356 eXMachina
eXMachina's picture

I use Mt.Gox never had a problem.

Sat, 01/04/2014 - 19:49 | 4300503 hmmtellmemore
hmmtellmemore's picture

Have you gotten any usd out?

Sat, 01/04/2014 - 20:25 | 4300587 DoChenRollingBearing
DoChenRollingBearing's picture

I have not used Mt. Gox.  The problem I see with them is that they are being put under rules that are like those for banks and Western Union: "know your customer", etc.

Spend BTC at https://www.goldsilverbitcoin.com/

Sell BTC locally!

"There's always someone around who will take your Bitcoin."  ™DCRB

Sat, 01/04/2014 - 20:33 | 4300546 DoChenRollingBearing
DoChenRollingBearing's picture

IridiumRebel

I would try registering for free at https://localbitcoins.com/.

You can then meet someone near you (I bought $300 worth of BTC at a Starbucks from a guy I "met" at localbitcoins).

Or you can take your chances by buying from someone by sending cash via US Mail, I did that twice...

 

EDIT:

Bring your laptop with a BTC wallet already set up.  Then be prepared to wait WITH yoru BTC seller for 30 minutes or so for the transaction to go through.  Buy him coffee!

More:

http://tinyurl.com/nu8v6zx

Sat, 01/04/2014 - 15:59 | 4300118 fonestar
fonestar's picture

The property is actually going to lose value in terms of BTC over the long haul.  Why is it so amazing to TD/ZH every time they find out you can buy anything you want with a..... currency?

Sat, 01/04/2014 - 16:05 | 4300122 Stoploss
Stoploss's picture

This is about theft you fucking idiot....

Money fucking laundering using US property as the proxy.

You believe in your shit so much then be the first motherfucker to die for it and shut the fuck up.

Find another portal fucktard.....................................

Sat, 01/04/2014 - 16:07 | 4300126 CH1
CH1's picture

You believe in your shit so much then be the first motherfucker to die...

LOL... a statist tool, pretending to be a tough guy!

Try stepping out of your obedient little mold and doing something unapproved. See if you have the guts.

Sat, 01/04/2014 - 18:13 | 4300298 margaris
margaris's picture

@stoploss

I respect government like I would respect a clever enemy. They are so good at what they do.

Sure I hate them and want them to disappear forever, but let's look at what they have achieved:

They have managed to brainwash the sheeple so effectively, that the sheeple themselves don't see taxes as theft anymore, rather they call the one who doesn't pay taxes a thief.

It's completely ridiculous.

The same with this bizzare concept of "money laundering":

First governments overrides all our freedoms/rights and declares some plants/services and their voluntary trading/offering illegal, but then they go ahead and call it "money laundering" if you nonetheless use their fiat money to participate in those "illicit" things. Even if you use new kinds of currencies (like bitcoin) that are outside of their control, they still call it money laundering... it's mind boggling.

So all this money get's dirty when it comes in touch with those illegal activities the government declares so. But in reality money is just a concept (concepts can't get dirty, what does that even mean??) and the illegality is completely arbitrary. The only real thing are the victims of government actions. (biggest victim: taxpayers)

 

How is someone who doesn't want to be a victim a thief instead? Please explain

Sun, 01/05/2014 - 05:08 | 4301311 MeelionDollerBogus
MeelionDollerBogus's picture

credit where credit is due.
Government actually became MUCH LESS clever at covering their deceptions.
Children simply grew up poorly educated & of poor genetic stock. Their parents & parents before them failed them.
That's why we have today's sheeple: they are dumb as fuck.
Those who came from good genetic stock, had good diets growing up & a good education didn't fall for the tricks.
They are the minority & some of them are the tricksters.

Sat, 01/04/2014 - 16:44 | 4300178 Unpopular Truth
Unpopular Truth's picture

Stoploss:

Yes, real estate can be used to launder cash.

Whom do you hate here?

NAR for making it legal?

Phonestar for some reason?

If you also hate bitcoin, read here: http://www.bitcoinhatersguide.com/ - specifically, in all BTC transactions it is recommended to cash out, because it is volatile.

 

Sat, 01/04/2014 - 17:10 | 4300216 fonestar
fonestar's picture

"This is about theft you fucking idiot...."

Bitcoin and not property is the perfect vehicle for laundering money (doing what you want with your money) dipshit.

Sat, 01/04/2014 - 17:23 | 4300233 jbvtme
jbvtme's picture

fman, how do i convert phyzz into bitcoins?

Sat, 01/04/2014 - 17:31 | 4300243 fonestar
fonestar's picture

I know there's some sites out there that do that but buyer beware, one apparently did vanish from the face of the web.  I'd feel more comfortable meeting face to face.

Sat, 01/04/2014 - 17:41 | 4300268 malikai
malikai's picture

Probably best to take your phys to a shop, shift for fiat and then shift the fiat on localbitcoins.

There's so few people going that way right now it'll be hard to find a market in it directly.

Personally, I'd be going cash -> bitcoin. Then later bitcoin -> gold. I wouldn't be selling phys right now. Calls maybe, but certainly not phys.

Sat, 01/04/2014 - 16:30 | 4300159 Sudden Debt
Sudden Debt's picture

Please use any wallet at your own risk, and consult with the wallet provider for terms and conditions.

You'll find this disclosure on any bitcoin site. So bitcoin in my eyes is setup for a massive fraud in the short future where not bitcoins will all be hacked and stolen but all the wallets.

How many morons keep wallets on websites they know nothing about?

So kid in a basement can create a wallet site and wait a year before he steals them all. And what can you prove once he stolen them?
Nothing.

good luck even trying to explain to a cop what a bitcoin is when you file suite...

Sat, 01/04/2014 - 16:46 | 4300177 One And Only
One And Only's picture
Target: 40 million credit cards compromised

http://money.cnn.com/2013/12/18/news/companies/target-credit-card/

Had target accepted bitcoin 40 million people would have been protected.

€1.6m gold 'stolen' on Air France flight

http://www.france24.com/en/20130924-gold-brinks-millions-air-france-flight/

Gold can be stolen too, so using your logic gold has been hacked and is only for those who want to get ripped off.

Sat, 01/04/2014 - 19:39 | 4300476 hmmtellmemore
hmmtellmemore's picture

You know, I think wallet is a misnomer.  Its more of a wallet password.  What I mean is, someone can copy your wallet (or a backup of your wallet) and empty it out.  It doesn't make sense to think of it in terms of a traditional wallet where if you see it then it isn't lost.  On the other hand, we all understand what can happen if you publish your password.  

Sat, 01/04/2014 - 21:41 | 4300758 pbppbp
pbppbp's picture

Take your btc offline.

Sun, 01/05/2014 - 02:27 | 4301219 SilverIsKing
SilverIsKing's picture

Thanks for the what. Now please provide the how.

Thanks.

Sun, 01/05/2014 - 04:56 | 4301304 MeelionDollerBogus
MeelionDollerBogus's picture

what currency?
BTC isn't a currency.

Sat, 01/04/2014 - 16:04 | 4300119 tmosley
tmosley's picture

Well, China and pretty much all the momos and speculators were driven out earlier and it only fell what?  60%?  I don't think it's going to be hitting $2 any time soon.  It is too entrenched now, with too many people waiting to get in at bargain prices.

Sat, 01/04/2014 - 17:46 | 4300275 malikai
malikai's picture

As an evil speculator running LL HFT (at internet speeds), I can certify that some of us got way stronger.

Sat, 01/04/2014 - 18:23 | 4300334 New World Chaos
New World Chaos's picture

BitCoin is dead.  Long live BitCoin!

Sat, 01/04/2014 - 19:40 | 4300480 hmmtellmemore
hmmtellmemore's picture

It will only die when a better alt currency takes hold.  It won't die because of Statists (although they can make it harder to use).

Sat, 01/04/2014 - 16:40 | 4300170 Larry Dallas
Larry Dallas's picture

Let's put this in focus. This is a Realtor we are talking about who

a) has zero allignment of interests with the buyer.

b) could care less about the price of Bitcoin.

As much as I hate NYC Realtors, this guy will mint more money than ever before. Especially if he is daring enough to represent buyers in Miami, SF, etc...

Sat, 01/04/2014 - 18:27 | 4300337 akak
akak's picture

 

b) couldn't care less about bitcoin

 

As you wrote it, you were saying the exact opposite of what you obviously were intending to say.

Sat, 01/04/2014 - 19:45 | 4300487 hmmtellmemore
hmmtellmemore's picture

It's funny, most people say "could care less" even though this is not what they mean.  I think people don't want to bother with the extra syllable and could care less what others think of their grammer.

Sat, 01/04/2014 - 19:58 | 4300533 willwork4food
willwork4food's picture

WTF? Is this Grammer class Saturday Night Live?

Sat, 01/04/2014 - 22:13 | 4300837 InjectTheVenom
InjectTheVenom's picture

Actually, Einstein1 and Einstein 2, it's GRAMMAR

Sat, 01/04/2014 - 22:49 | 4300929 willwork4food
willwork4food's picture

OK. I officially have egg on my face.

Sat, 01/04/2014 - 22:42 | 4300912 Larry Dallas
Larry Dallas's picture

Akak:
Thank you!
Larry

Do NOT follow this link or you will be banned from the site!