Bitcoin: Now Accepted As Down Payment For UK Houses

A UK co-living company has announced that it will begin accepting down payments made in bitcoin, according to CoinTelegraph, making it that much easier for traders hooked on effortless, outstanding returns to speculate in another bubble-prone market: UK housing.

Co-living pioneer The Collective announced the decision on Tuesday, saying it’s the first developer that will accept payments in cryptocurrency. The company added that it’s exploring how to accept rental payments in bitcoin, which it hopes to implement later in the year. It said that its decision to accept bitcoin was related to demand from international clients.

The company has pledged to perform a “spot conversion” of users’ deposits – a fancy way of saying it intends to hedge its position – so that it bears any financial risk while holding the deposit.

“The Collective's online booking form for its Old Oak living scheme, an ambitious co-living development with 550 rooms, will be accepting Bitcoin as a deposit on the flats.

 

The standard deposit is £500, which equates to about 0.148 at time of publishing. Additionally, with the volatile nature of Bitcoin seemingly holding back its ability to be utilized as a currency, The Collective has pledged “spot conversion,” which means it will bear any financial risk while holding the deposit, returning it at the original value when the tenancy finishes.”

The Collective’s chief executive and founder Reza Merchant said the decision was a bold move for the UK property market.

“The rise and adoption of cryptocurrency globally, particularly Bitcoin, is a fascinating development in how people store value and transact for goods and services worldwide.

 

With many savers and investors now choosing and becoming more comfortable with cryptocurrency, people will expect to be able to use it to pay for life’s essentials, including housing deposits and rent.”

It’s a major step indeed. Housing prices in London have risen 65% since 2011, compared with bitcoin’s more-than 300% climb since the beginning of the year. But we imagine some less risk-averse bitcoin investors might be attracted to the deal, reasoning that it’s a smart way to lock in their investment returns.

But London property values might not be as invincible as the world thinks.

UK’s Land Registry data for three London boroughs shows transaction volumes in London are at all-time lows. Back in December asking prices in London dropped 4.3%, with inner London down 6%. More exclusive areas dropped by as much as 10%.

Between 2006 and 2016, average home prices in the capital grew from £257,000 to £474,000 or by a very substantial 84.4%. These large gains were 'built' on the back of the very large appreciation in prices between 1996 and 2006.

Despite this, the Collective’s head of technology, Jon Taylor, told CoinTelegraph that their company is proudly breaking down barriers to bitcoin’s legitimacy.

“One of the biggest barriers to the popularity of Bitcoin is making it more consumer-friendly, and we believe this will become established as an easy and convenient way to pay deposits.”

According to CoinTelegraph, private property owners in the US have occasionally priced their property in bitcoin in the hopes of attracting buyers, as well as accumulating the valuable digital currency. A well-regarded Miami trader recently placed his house for sale in Bitcoin after first trying to entice the seller to pay him in bitcoin back in 2014.

With the economic threat of Brexit looming in the not-too-distant future, some say the UK housing market is headed for a leveling off if not an outright drop. But who knows, maybe we will see one last leg higher as the crypto traders look to cash in their winnings before the next Mt Gox kills the market.
 

Comments

LindseyNarrate… (not verified) TeamDepends Wed, 09/06/2017 - 02:24 Permalink

What I want to know is where is (((tomsley))), and his alter-ego/other-account, (((order66))), now, with his comment(s)? Seriously. If you people did not know that those two entities, here, at Mr. Durden's site, were/are the same person, NOW YOU KNOW. Lindsey

In reply to by TeamDepends

The Cooler King (not verified) LindseyNarrate… (not verified) Wed, 09/06/2017 - 09:41 Permalink

Here's a nice 'fixer upper' mosley! http://i.dailymail.co.uk/i/pix/2013/02/12/article-2277443-1786F3E000000… Finally you'll be able to buy that furniture ensemble on OVERSTOCK.com & put it to good use. j/k Note: I said this at the beginning of the week... You guys REALLY need this thing to stay above $4200 by the end of the day Friday. Anyone who knows anything about technical trading knows that if you're not a WHALE out there with the power to move price levels, you stay away until after Fr4iday & let it resolve itself.

In reply to by LindseyNarrate… (not verified)

Exponere Mendaces LindseyNarrate… (not verified) Wed, 09/06/2017 - 10:02 Permalink

Zh nutjobs are so easy to spot.Hey asshole, you know that your name appears next to your post, right? Why are you signing your fucking post like Mr. Burns trying to use email?Its gotta be a retiree thing."I wrote this missive, now I must use my flourishing e-pen to sign and seal it! Just like they did back in the days of my youth! Now to take the autogyro to Siam post-haste!"What the fucking fuck.No wonder you metamucil-gargling retards can't understand crypto. You barely understand how to use the internet. 

In reply to by LindseyNarrate… (not verified)

ET (not verified) Wed, 09/06/2017 - 02:10 Permalink

Crypto market top.Time to walk away from the poker table and quietly cash in your chips before everyone else does and forces the casino into bankruptcy.Too many people who buy lottery tickets and slack-jawed yokels are also talking excitedly about crypto. Major warning sign of an epic crash.No plunge protection team or circuit breakers to stop this crash. Be prepared. Cryptos can plunge more than 40% in mere seconds and at any time of the day.Already there are crypto users who are looking to cash out big time to buy houses. What will happen to the price of crypto with massive sell orders coming? I already sold my litecoins when it hit $93 last Friday and took delivery of Precious Metals.The Gold and Silver mining sector is also starting to heat up and blast off. That is where the money is headed next.The faster that sector takes off, the more money will be sucked out of cryptos. Cryptos, furthermore, can be tracked. Cryptos have no underlying physical asset. An infinite variety of cryptos can be created.Cryptos have no reason to exist and should not be worth anything. Sell now or end up with nothing. This bubble is imploding. This time is not different.

aurum4040 Lego Brave Wed, 09/06/2017 - 09:02 Permalink

It isn't wealth necessarily - it is pure money yes. Since the time of Nebdechenzarr(spelling )an oz gold has purchased 350 loaves of bread. It still purchases about 350 loaves of bread. Money for necessities, commodities - yes. Anything else is a crapshoot based on market Dynamics, geopolitics, and technology. It's not that easy, although I wish it was.

In reply to by Lego Brave

tion ET (not verified) Wed, 09/06/2017 - 02:29 Permalink

It's not fractional reserve how will it go BK?  Sure, the price is fluid, but I think you're missing an important point. The exchanges are another  story though, people holding their bitcoin through a custodian are  just asking for trouble.  What is fiat physically backed by and why should it be worth anything?  I don't know a single normie that owns bitcoin, though some half-normies are starting to get curious.I do love me some phys and agree on the mining stocks, but bitcoin has it's place in a portfolio however small that space may be for risk adverse folks. Most people on here prob already have the shiny coming out of their ears anyways. Transacting over the interwebs with phys wouldn't be so easy. Bitcoin is not ideal for transactions you need to clear in person quickly but works fine for online purchasing of goods. I will work towards accepting bitcoin for goods and also bet I could order materials from Japan or Korea or other markets that are normalizing it's use and pay in bitcoin if I needed to, because no matter wtf happens to the markets or global fiats the show must go on. Bitcoin is an excellent inverse hedge IMO.I have a hard time justifying picking up any more shiny unless its something particularly beautiful that I don't have, but I am going to start 'diversifying' into some of that silver clay stuff and a little oven and learn how to make pretty jewelry and things with it :)

In reply to by ET (not verified)

quadraspleen ET (not verified) Wed, 09/06/2017 - 07:00 Permalink

"Crypto market top"Bold claim. How many times have you (or others) called it now? We had this all before. Two or three times. This isn't a bubble. It's a new paradigm. Your down-sides are irrelevant for anyone who isn't a crook. I can convert the enormous profits on my cryptos (but I won't; not just yet) into a fucking house. I pay no tax on it as I haven't made a profit. I bought another asset with it. I only pay taxes if I choose to bring my gains into the fiat system. Yawn.

In reply to by ET (not verified)

Exponere Mendaces ET (not verified) Wed, 09/06/2017 - 09:58 Permalink

Always need some rube to bottom-tick the next rally.Why not you? Its perfect. You are only motivated by short-term gains, so you'll miss out on the longer term picture.As a ZH nutjob, that's about the right dividend you deserve.I'm happy on the other hand, to add to the multi-hundred percent my P/L has enjoyed this year.Must suck getting old, you start to make shitty decisions and then chalk it up to "knowing better".What a laff. 

In reply to by ET (not verified)

RedDwarf AG17 Wed, 09/06/2017 - 03:55 Permalink

I paid for a nice set of furniture, new flooring, and a new masonry wall for my house from selling some of my crypto, yet my remaining crypto is still worth more in fiat terms than what I had several months ago before spending all that money.  I recouped all those home improvement expenditures in growth of my remaining crypto value.I'm nothing special.  This is how it is going for everyone who invested in crypto.  Even if it does crash one day, we'll have greatly improved our lot in life in the meantime.  So no, the last laugh is not ever going to be yours, even if it does someday crash.

In reply to by AG17

ET (not verified) Debugas Wed, 09/06/2017 - 02:18 Permalink

The real story is that there are crypto users who want to unload their crypto to buy homes.Massive selling is coming.No plunge protection team.No circuit breakers.24/7 trading.This is going to be an EPIC crash. The smart investors already walked away from the poker table and took their winnings home.The only ones still playing are the desperate and poor lotto players, hoping to make a fortune.That time has passed. They will be busy fighting the exchanges to get their money out. The crypto Endgame has always been Hard Assets, such as Physical Gold and Silver.In a short while, these will be unattainable to the vast majority of crypto users because they are unable to cash out.

In reply to by Debugas

tion ET (not verified) Wed, 09/06/2017 - 02:57 Permalink

Some of these bitcoin millionaire kids (in this area some ppl are kids well into 30's) don't even own a car or have their own place and run around in tshirts with holes and grease stains on them, all of their wealth is in bitcoin, they are smart to diversify, because you're correct in that the wealth will never be in ones and zeros. But just like they want to unload some bitcoin, there are people who want their bitcoin that will start trying to cater to them to get them to part ways with it. Some of these kids are sitting on over 1000 coins each, it's better for them to not hoard them all, but a lot of them never upgraded their lifestyle expenses as the price rose and seem more likely to throw their crypto wealth into a dark ICO hole than to buy a house or a button up shirt.

In reply to by ET (not verified)

Exponere Mendaces ET (not verified) Wed, 09/06/2017 - 10:12 Permalink

What a market-tard. You must love government regulators and the state telling you how to do things.You WANT a plunge-protection team?You WANT circuit-breakers?Does a freely traded market scare you THAT much? What kind of idiot are you? (Besides being a ZH nutjob).You think you can time the market? Then put your money where your flapping grey gums are.The "crypto end game" doesn't involve your government-funded gold trinkets. Anyone who is capable of thinking ahead more than a year can see it.But you don't -- because you're a ZH retard. 

In reply to by ET (not verified)

Panic Mode RedDwarf Wed, 09/06/2017 - 06:42 Permalink

You are assuming an ideal world with everything going your ways like a three year old.You still need to exchange Bitcoin to fiat to buy things. Even there are more & more retailers accept bitcoins, do you really think the oligarchs who have the power to write the rules let you do that?? One flick, they can ban retailers of accepting bitcoins and you are stucked with bits. Oligarch is likely to come up with their own cryptocurrency as a legal tender. 

In reply to by RedDwarf

RedDwarf Panic Mode Wed, 09/06/2017 - 11:53 Permalink

"You are assuming an ideal world with everything going your ways like a three year old."Not an argument."You still need to exchange Bitcoin to fiat to buy things. "The article is about how you can now exchange Bitcoin to buy houses you dumbfuck."Even there are more & more retailers accept bitcoins, do you really think the oligarchs who have the power to write the rules let you do that?"Oh, you mean like how they have already tried and failed in various places like Venezuela?  Look, they can make it be a black market, but they can't stop the black market.  I guess you don't bother holding gold or silver then since they are all powerful in your eyes and can just ban that at will as well.You've given up the fight.  You're so convinced it's impossible to win that you're now a supporter of your own slave master."Oligarch is likely to come up with their own cryptocurrency as a legal tender."Sure they will for regional trading, doesn't mean they can stop the decentralized ones.  In addition for international trade and conversion a decentralized one that that no one controls and that all cna trust will be needed.  Bitcoin fits that bill as the reserve currency perfectly, even better than gold which was the previous version of that.Furthermore totalitarian governments are economically fragile and inefficient.  All the capital will flow to where it grows best, and that will always be places with liberty, respect for private property rights, and free markets.  That means the strongest economies will allow the cryptos and eventually will become the new superpowers.You can ignore reality, but not the consequences of ignoring reality. You cannot grasp the larger picture.

In reply to by Panic Mode

Oyster Debugas Wed, 09/06/2017 - 12:25 Permalink

Paying in bitcoin is not a taxable event for the buyer. No capital gains tax, and should the party accepting bitcoin as payment not convert to fiat, it's also not a taxable event.By the way, it is possible to buy a house anonymously but you must first set up a LLC and then disguise your identity with shell companies. Wealthy Chinese buying property in the west to get money out of China often employ this method. Nothing illegal about it. Anyone can do it, but of course it costs money. Extraordinarily wealthy people often do this to protect assets such as homes, yachts, planes and cars from risk in litigation. The goal can be to own no big ticket item that can be at risk in a lawsuit. Of course, they do actually own it, but it wouldn't be considered an asset legally should anyone sue them. The person seeking a legal judgement would have to sue the LLC, which can be prohibitively expensive and can be drawn out for years and years. Generational wealth often goes through a family trust before being distributed to benificiaries piecemeal. This is essentially the same thing. It protects the fortune.

In reply to by Debugas

Soul Glow Wed, 09/06/2017 - 02:09 Permalink

Tmose would tell you this is great but he couldn't part ways with any of his precious bitcoins.  Not until they are worth 45,000 tulips!  Muhahahaha!