Bitcoin, defying all the insurmountable odds that seemed to stand in the way, is fast becoming an attractive currency for the high-end real estate market. In fact, it’s becoming almost commonplace for buyers and investors to use bitcoin for luxury real estate purchases. This is a direct result of some of the most attractive features that this cryptocurrecny brings to the table, which have the ability to particularly affect luxury transactions, such as substantial property deals.
Charting the Recent Rise of Bitcoin for Luxury
When it initially appeared on the global financial stage, bitcoin was roundly dismissed. Indeed, conventional wisdom expected it to fizzle out quickly. However, bitcoin’s fortunes have recently undergone a change, reflected in a meteoric rise in usage. In fact, current estimates suggest that bitcoin has up to 10 million unique users and, with its use continuing to surge, there may be no limit to bitcoin’s growth.
One significant cause of bitcoin’s skyrocketing popularity can be traced to its specific suitability as a payment method for truly big-ticket luxury items, such as highly valuable pieces of art and luxurious real estate properties. As more and more luxury purchasers and investors begin to recognise the positive effects it can bring to complex asset transfer processes, bitcoin’s prospects will only improve.
Why Bitcoin Is Such a Good Fit for the Luxury Real Estate Marketplace
The reasons why bitcoin has been able to dramatically transform its image from a flawed currency instrument into an acceptable and even desirable type of money include factors are multiple. They include its extreme convenience, its adoption by several Asian indexes, its legitimisation by blockchain technology and its portability and speed of movement, due to its freedom from traditional monetary regulations.
However, when it comes to bitcoin’s ascendancy in the luxury realm, there is one specific benefit, which has endeared it immeasurably to buyers of high-end, luxury products, such as artwork, yachts, private jets and real estate. To put it plainly – bitcoin seriously reduces, and even virtually does away with, the hefty transaction fees and middleman costs that are customarily associated with purchases involving large sums of currency.
Whereas, most financial institutions that handle vast asset transfers, traditionally charge their customers for the movement of funds from one account to another, transactions involving bitcoin function quite differently.
Under normal circumstances, percentage-based transaction fees, which are levied on most monetary payments by banks, credit card companies and the like, only grow in accordance with the size of the purchase. Not surprisingly, on large-scale transactions, these fees can end up being quite substantial, if not prohibitively expensive.
For example, if someone were to buy a painting or an automobile for €100,000, the wire transfer costs associated with this transaction could reach up to €4,000. Now, extrapolate that amount out to match sums on purchases involving millions of Euros. The fees would expand exponentially. This comes into play when dealing with truly significant investments, such as art or luxury real estate. Transaction costs associated with luxury villas in the South of France, for example, could prove to be considerable.
This is where bitcoin offers an outstanding advantage, because, with bitcoin, a typical transaction fee on a million-euro purchase usually will range from under €1 to less than €2. Of course, this represents an incredible savings for those who use bitcoin for luxury investments, including real estate. With that in mind, it’s easy to understand why more and more investors are utilising bitcoin for their high-end real estate purchases.
St Tropez House Accepts Bitcoin Transactions
In keeping with our commitment to offer the latest, state-of-the-art tools, technologies and advances, in order to enhance our client experience, St Tropez House now accepts bitcoin for real estate transactions. This introduction of bitcoin as an acceptable currency forms another element of our promise to deliver our clients the very best service, prices and portfolio in the high-end real estate market in the region.
Thus, when you are ready to close on a villa in Saint Tropez, or throughout the Cote d’Azur, you can choose to use bitcoin and reap the rewards that this emerging cryptocurrency can provide. But, even for those who are not yet quite comfortable with the concept of bitcoin, it’s probably still reassuring to be aware that St Tropez House leaves all options available.
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