How Bitcoiners Might Break into Housing
101 sats \ 6 comments \ @nerd2ninja 15 Aug 2022 bitcoin
I mean the housing market. I'm already seeing Bitcoiners transition to paying for food entirely with Bitcoin via local producers (Farmers markets). Though we need better infrastructure for this to market your farmers market Bitcoiner to as large of a market as they can handle. Now as we go through the list of things that need to be paid for in Bitcoin to get off FIAT, we look into housing.
Consider rent to own: https://www.renttoown.org/
We already have retailers who will sell houses to Bitcoiners, but now lets look at the possibility of those same Bitcoiners then selling their houses to newer Bitcoiners via rent to own at a profit margin.
As always, if you have other ideas on how we can build businesses around replacing FIAT for everyday things, I'd love to read all about it.
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16 sats \ 3 replies \ @k00b 15 Aug 2022
How does rent to own work for the seller? Like, what's upside?
I understand lease to own in car dealership context (they are trying to move as many cars as possible), but for a home seller it seems like I'm missing something.
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100 sats \ 2 replies \ @nerd2ninja OP 15 Aug 2022
You know, I actually didn't know off the top of my head. A quick search gave me this: https://smartasset.com/mortgage/why-sellers-should-offer-rent-to-own-contracts
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15 sats \ 1 reply \ @k00b 15 Aug 2022
In strong markets with increasing home prices, sellers may unfortunately lock down sale prices potentially before homes reach peak values.
This is my main "concern." Cars are depreciating assets. Homes, at least currently, are not. It seems like you get all the upside of renting, but depending on the housing market you win or lose. I suspect this is why folks rent and/or sell.
In a world where credit doesn't flow so freely I could see this kind of thing become more popular though.
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100 sats \ 0 replies \ @nerd2ninja OP 15 Aug 2022
Yes, so then it may come down to whether you want to speculate on real estate or not. Will the increase in housing prices more than pay for the closing costs you'll have to pay for a realtor? Are housing prices at peak or not? This is speculation and if you don't speculate very well, you may still consider this option.
That being said, if the renter abandons this agreement, the seller keeps their house, weathers the market downturn, and puts the house back on the market (keeping the money they earned from renter without giving them the property). Whereas look at what happens with bank loans. If you have a downturn in housing, the entire financial system comes to a grinding halt, not just home sellers.
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15 sats \ 1 reply \ @premitive1 15 Aug 2022
I tell people an idea So the richer bitcoiner buys the property. then they own the property, but they can fractionalize ownership of the property, and the renters would pay to own shares, which over some period of time decided upon by the owner, would amount to enough shares to own the whole unit. Can work for a house, or a condominium building. You need a base maintenance fee, which cannot go to ownership, but anything above that can go to ownership.
I don't quite know how you work this out in bitcoin terms due to volatility, but in some manner that's how the thing works. It could be dollar equivalent in bitcoin monthly for the time being, but it does not have to be.
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0 sats \ 0 replies \ @nerd2ninja OP 15 Aug 2022
I think actually, if you could choose, you'd want to price it in gold, because median housing value priced in gold is flat if you control for credit bubbles (aka in the long run), but its merely that you accept payment in Bitcoin and whether the seller holds onto the Bitcoin after the sale or buys dollars with it or buys gold with it is up to the seller. Nontheless, this method defunds the banks.
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