To buy a house, one generally needs to put down a downpayment and take a loan from the bank to pay the rest. After this, the owner can pay monthly EMI to own the house. While there is nothing wrong with this process for those who have large chunks of their assets in crypto would never want to sell it to buy a house. This is for 2 reasons, first is the future profits they are losing on and second is they have to pay tax as soon as they buy it. So, now Milo has bought a crypto mortgage option where US citizens can buy houses with Bitcoin.
How will it work?
Milo is a financial technology company that is now offering options to US citizens to use their crypto to buy their homes. As a buyer, one doesn’t need to sell their holdings, so they are not losing out on future profits or paying taxes. While buying a house, their Bitcoin will simply be a mortgage to the company. One can mortgage their Bitcoin to the company and get a 30-year low-interest period to pay off the amount of the house. Once they pay it back, the Bitcoins will be returned. In this way, in case the value of BTC increases 2 fold during this period, they do not miss out on those gains.
Even Milo says that this is a real good option because no downpayment is required using the dollar. And users will be able to enjoy the price appreciation of both the assets, that is, their house and BTC. The company is planning to make this crypto mortgage available for most of its applicants in 2022.
Note: In case you are planning to use this option, make sure to read the fine print to check if there are any catches. An obvious one was pointed out by a user on Reddit.
Milo’s CEO explained why this is important?
At present, the crypto market cap is worth more than $2 trillion, which means that there are a lot of people invested in it. Josip Rupena, the CEO and Founder of Milo, said that there are countless stories where people use their crypto or Bitcoin to buy a house or something else and see it later increase in value. So, this new option is going to be a boon for those people. This is because selling crypto to buy a house makes it even more expensive, adding the opportunity cost.
What are your thoughts as the US citizens can buy houses with Bitcoin? And do you think this is a good option? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.