Bitcoin has become the embodiment of a new class of wealthy investors. Those, who bet big on Bitcoin in the early days, have made out well, and several industries are seeking ways to cater to those, who have made their fortune through investing in cryptocurrencies. One San Diego-based investment firm, Canter Companies, is turning to Bitcoin as an alternative to traditional methods of selling real estate.
Canter has listed two properties in La Jolla, CA as the company’s initial launching point in crypto real estate sales, and it hopes the move will continue to follow a growing trend of properties changing hands with Bitcoin as the medium of exchange. One property, owned by Canter, is located at 6653 Neptune Place and goes by the moniker Marine Lair. For generous $11.8 million, the 3,124 square foot beachfront property can become yours.
The other estate, owned by Canter client Alan Ezeir, sits at 1257 Silverado St., encompasses 5,213 square feet of luxurious modern architecture, and has a price tag of $7.8 million.
The option to purchase the properties using the most popular cryptocurrency on the planet is in lockstep with the trends of the financial sector, which has seen alternate means of payment – namely, cryptocurrencies – increase in value and adoption for some time now. Though the value of Bitcoin has receded from its high-water mark, it’s shown steady resilience, making it evident that cryptocurrencies are here to stay as a form of investment and store of value. It only makes sense to parlay Bitcoin’s popularity into industry, especially considering that one-time purchases of high-priced assets, such as real estate are ripe for the use of cryptocurrency. And, as Andrew Canter, Founder and CEO of Canter Companies explains, it can reorient the way that buying and selling a home is seen.
“We realized there is so much new wealth in the crypto space,” he said. “There are a lot of new buyers and a lot of people that have seen their wealth fluctuate over the last year.”
By working with banks to install futures contracts that lock in an agreed-upon price at the time of sale, buyers and sellers are afforded protections from Bitcoin’s daily fluctuations once terms are settled. It should be noted that Canter Companies is not alone in the crypto real estate sphere. They are acting astutely along the lines of what appears to be a growing trend in property sales.
In September of last year, Kuper Sotheby’s brokered the sale of a home in Austin, Texas, for which terms were not disclosed. At the time, Bitcoin was valued at $3,429, and that seller was proven shrewd as the price of the cryptocurrency would skyrocket in ensuing months. Canter Companies’ two for-sale homes are not even the only Bitcoin-optional properties in the San Diego area. A 2.32-acre site at the end of Boundary Street in North Park has been listed since November.
There’s no doubt that the Bitcoin-for-property arrangement will require the right pairings of buyers and sellers. Veering from customary modes of transaction may be daunting for some, especially when it comes to a purchase as significant as a multi-million dollar property. That said, those, who understand the nature of cryptocurrencies, may be inclined to accept Bitcoin as payment, hoping that the value of the coin will increase in the future. Others will also be more comfortable being paid with something that has proven less volatile than Bitcoin, but for those, willing to take the risk, accepting Bitcoin when it comes time to sell their property could also offer a significant reward.
“It’s a personal preference when it comes down to it,” Canter said. “I don’t think we can speak to a financial benefit here or there. Obviously, the chance [bitcoin’s value] goes up is just as much as it goes down right now.”
Canter understands that there is an element of uncertainty that accompanies parting with or accepting cryptocurrency in exchange for something that is more tangible, like a house. But, allowing parties who are either looking to utilize their crypto earnings, or add to their store of Bitcoin, makes sense, and could potentially expand the luxury real estate market to a demographic not otherwise inclined to purchase.
Canter sees the option as a dedication to embracing change and staying ahead of the curve in a crowded real estate industry.
“As a company, we think it’s important to embrace change and adapt as the world evolves. As the cryptocurrency market continues to expand with new high-net worth individuals, there is a growing need for some of these investors to diversify their assets. Offering real estate for Bitcoin opens a different opportunity for this new class of wealthy that could help decrease volatility.”