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Miami condos on the market value $ 31 million, or round 560 bitcoin

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The Arte condominium in the Surfside neighborhood of Miami Beach has 16 luxury units.

Surfside art

Two luxury condos are for sale in one of the most exclusive oceanfront properties in Florida for a total of $ 31 million – and developers are accepting payment in Bitcoin.

The 12-story building of 16 residences in the town of Surfside, near Miami, is called Arte, and prices start at more than $ 10 million each. Developers Alex Sapir and Giovanni Fasciano say interested buyers are welcome to make offers in Bitcoin or Ethereum. Earlier this year, they sold a penthouse in the building for a record $ 22.5 million in crypto.

The Arte condominium in the Surfside neighborhood of Miami Beach has 16 luxury units.

Surfside art

Prospective buyers can choose between two apartments. A 6,982-square-foot unit is on sale for $ 18.95 million and a second lot, about half the size, is priced at $ 11.9 million. Based on the most recent price, that would be 560 Bitcoin. Both have wraparound terraces with sea views, large walk-in closets, direct elevator access with fingerprint recognition technology and floor-to-ceiling glass walls.

The building equipment is similarly decadent.

There are indoor and outdoor pools, as well as a large rooftop tennis court. Arte residents can also take lessons from prominent tennis coach James Bollettieri. Other perks include a gym, yoga studio, sauna, steam room, children’s playroom, catering kitchen, temperature-controlled parking, and a fleet of white-gloved butlers.

The Arte condominium in the Surfside neighborhood of Miami Beach has 16 luxury units.

Surfside art

Real estate boom meets crypto boom

Covid-related work and travel restrictions have done the real estate business good. Property prices have soared at a record pace amid a nationwide property boom.

The surge coincides with the recent spike in Bitcoin and other cryptocurrency prices, and the two trends are converging in Miami, which is trying to position itself as the US crypto capital

Miami real estate mogul Marc Roberts is taking crypto deposits for its condominiums, claims to have sold a penthouse for $ 22 million in crypto, and is co-owner of E11even, which enables customers to trade Bitcoin.

There are also websites that have made it easier to find properties for sale using crypto.

The Arte condominium in the Surfside neighborhood of Miami Beach has 16 luxury units.

Surfside art

“We were overwhelmed by the amount of calls we received from qualified buyers shortly after we announced our ability to facilitate cryptocurrency transactions for the condos at Arte,” said Sapir. “Real-world crypto transactions have not yet fully established themselves in the mainstream, so it’s clear that top holders around the world watch out as new transaction opportunities arise.”

The real estate couple told CNBC that they believe they are “targeting a new audience that is trying to secure their profits in coins by investing in a stable asset like real estate”.

The Arte team said that processing crypto transactions is smooth and even faster than a traditional cash transaction. The developers received an offer for the Penthouse Days after they announced they would accept crypto, and the sale closed two weeks later.

The developers will neither reveal the identity of the owner nor what form of cryptocurrency has been accepted for the property. However, they have told CNBC how they are conducting a property sale in virtual tokens.

The deal is structured between two wallets and the funds are converted into US dollars before the deed is transferred. This is where the traditional mechanism of any real estate transaction comes into play, such as getting funding in an escrow account and making payments through a trustee.

The Arte condominium in the Surfside neighborhood of Miami Beach has 16 luxury units.

Surfside art

But not everything goes smoothly.

Fluctuations in the price of the cryptocurrency can lead to pricing and billing challenges. Additionally, the built-in anonymity and privacy behind crypto transactions can make it difficult to track the source of the funds required for compliance checks. One possible solution is to shift the conversion risk onto the buyer and then run independent compliance checks.

The Arte condominium in the Surfside neighborhood of Miami Beach has 16 luxury units.

Surfside art

Capital gains hit

Just because there are more ways to buy a home in crypto doesn’t mean you should, tax experts say.

The IRS treats virtual currencies like Bitcoin as property, which means they are taxed similarly to stocks or real estate.

“Every time you spend crypto to buy a cup of coffee or, in this case, a condo, it triggers capital gains taxes,” said Shehan Chandrasekera, CPA and head of tax strategy at CoinTracker, a crypto tax software company.

If, at the time of a transaction, the buyer’s crypto holdings have increased in value since the tokens were first purchased, the sale would be subject to either long-term or short-term capital gains tax.

The better option, according to Chandrasekera, would be to use his crypto holdings in a real estate business.

“If your net worth is tied to cryptocurrency, I think it makes more sense to take out a loan against your cryptocurrency and spend the money on buying a property,” he said. “This is because taking out a loan against your cryptocurrency is not a taxable event. You get liquidity without triggering a taxable event.”

It is also possible to take out a mortgage against a non-fungible token.

In both cases, however, the buyer has to pay off the loan over a certain period of time. Chandrasekera says the interest rates may be higher than traditional mortgage rates, but “this is great for people who don’t have good credit or want to own an apartment without going through traditional institutions.”

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The Arte condominium in the Surfside neighborhood of Miami Beach has 16 luxury units.

Surfside art

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