Four in five respondents, or 80 per cent, said they have reduced some kind of spending in the last few months, with 57 per cent reporting they have trimmed discretionary expenses.
Three quarters of Canadians say they are stressed about money. While July inflation decreased to 7.6 per cent from a 39-year high of 8.1 in June, indicating that inflation has slowed down for the first time in over a year, food prices have risen 10 per cent since last year.
If there's one thing that all Canadians agree on, as indicated by this survey, it's a belief that grocery chains are taking advantage of high inflation to hike prices and boost their profits — a phenomenon coined "greedflation."
Inflation in Canada falls to 7.6% in first slowdown since June 2021
ANALYSISInflation's hit to consumer spending power means retailers may refocus on the low end
Seventy-eight per cent of Canadians were aligned in believing this is happening, regardless of demographics, though major grocery chains like Empire and Loblaws have denied it, saying they've become more efficient.
To help afford the necessities:
Over 40 per cent of Canadians say they are delaying a major purchase and driving less.
Thirty-two per cent cancelled or curtailed travel plans this year, while over a quarter opted to scale back on charitable donations as they adjust their budgets.
Nineteen per cent said they are deferring contributions to their tax-free savings accounts and retirement savings plans.
Canadians were given a scenario in which they would receive a non-conditional gift of $5,000 — and 10 per cent said they would use it to address immediate financial obligations, while 38 per cent would use it for long-term needs; 43 per cent would save the money while nine per cent would make a pricey purchase.
But if the opposite happened — in which they incurred a surprise expense of $1,000 or more — half said they would not be able to shoulder the expense. Thirteen per cent say any unplanned expense would be "too much," the polling firm said in its report.
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Three quarters of Canadians say they are stressed about money. While July inflation decreased to 7.6 per cent from a 39-year high of 8.1 in June, indicating that inflation has slowed down for the first time in over a year, food prices have risen 10 per cent since last year.
If there's one thing that all Canadians agree on, as indicated by this survey, it's a belief that grocery chains are taking advantage of high inflation to hike prices and boost their profits — a phenomenon coined "greedflation."
Inflation in Canada falls to 7.6% in first slowdown since June 2021
ANALYSISInflation's hit to consumer spending power means retailers may refocus on the low end
Seventy-eight per cent of Canadians were aligned in believing this is happening, regardless of demographics, though major grocery chains like Empire and Loblaws have denied it, saying they've become more efficient.
To help afford the necessities:
Over 40 per cent of Canadians say they are delaying a major purchase and driving less.
Thirty-two per cent cancelled or curtailed travel plans this year, while over a quarter opted to scale back on charitable donations as they adjust their budgets.
Nineteen per cent said they are deferring contributions to their tax-free savings accounts and retirement savings plans.
Canadians were given a scenario in which they would receive a non-conditional gift of $5,000 — and 10 per cent said they would use it to address immediate financial obligations, while 38 per cent would use it for long-term needs; 43 per cent would save the money while nine per cent would make a pricey purchase.
But if the opposite happened — in which they incurred a surprise expense of $1,000 or more — half said they would not be able to shoulder the expense. Thirteen per cent say any unplanned expense would be "too much," the polling firm said in its report.
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▪️حمام گرفتن در وان یا استفاده از دوش، مسئله این است.
▪️موسسه QS Supplies در تحقیق اخیر خود نشان داده که کانادایی ها ترجیح می دهند بیشتر در وان حمام کنند تا دوش بگیرند. از 46 شهر بزرگ کانادا ساکنان 33 شهر تمایل به استفاده از وان دارند. مارکهام، می سی ساگا، بری، و اوکویل از شهرهایی هستند که بیشتر ساکنان آن دوش گرفتن را به استفاده از وان ترجیح می دهند.
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▪️موسسه QS Supplies در تحقیق اخیر خود نشان داده که کانادایی ها ترجیح می دهند بیشتر در وان حمام کنند تا دوش بگیرند. از 46 شهر بزرگ کانادا ساکنان 33 شهر تمایل به استفاده از وان دارند. مارکهام، می سی ساگا، بری، و اوکویل از شهرهایی هستند که بیشتر ساکنان آن دوش گرفتن را به استفاده از وان ترجیح می دهند.
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More trouble incoming for the Canadian housing market
The Canadian housing sector must brace for more turbulent waters ahead, building on the significant deceleration seen over the past few months, according to BMO chief economist Doug Porter.
Recent figures show that despite some positive developments, the Canadian housing market has essentially entered bear territory, Porter warned.
“The inventory of unsold homes has risen to 3.4 months (seasonally adjusted) from an incredibly skinny 1.7 at the start of the year,” he said. “That’s getting back close to the much calmer conditions prevailing just before the pandemic when they were a bit above four months’ supply.”
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The Canadian housing sector must brace for more turbulent waters ahead, building on the significant deceleration seen over the past few months, according to BMO chief economist Doug Porter.
Recent figures show that despite some positive developments, the Canadian housing market has essentially entered bear territory, Porter warned.
“The inventory of unsold homes has risen to 3.4 months (seasonally adjusted) from an incredibly skinny 1.7 at the start of the year,” he said. “That’s getting back close to the much calmer conditions prevailing just before the pandemic when they were a bit above four months’ supply.”
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“A metric that’s a bit more concerning for the near term outlook is the ratio of sales to new listings, which has plunged to just above the 50 level after holding well above a record high 75 for all of 2021. In Ontario, that ratio has dropped to barely above 40, a level it has seen only once in the past 25 years (in the depths of the 2008/09 downturn).”
The decline was most apparent in sales prices. The latest data from the Canadian Real Estate Association showed that the actual (non-seasonally adjusted) national average home sales price was $629,971 in July, representing a 5% year-over-year drop.
“Prices have famously started to drop in many Ontario cities in recent months, including the GTA, but they’re still up a tad from a year ago,” Porter said. “This ratio says there is more weakness coming, and soon.”
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The decline was most apparent in sales prices. The latest data from the Canadian Real Estate Association showed that the actual (non-seasonally adjusted) national average home sales price was $629,971 in July, representing a 5% year-over-year drop.
“Prices have famously started to drop in many Ontario cities in recent months, including the GTA, but they’re still up a tad from a year ago,” Porter said. “This ratio says there is more weakness coming, and soon.”
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Scarborough Single Family
$870,000
Closing Date: FLEXIBLE
OVERVIEW
Cliffcrest bungalow with prime location! This Scarborough single family home is located minutes away from the Scarborough GO Station and many amenities. This property boasts a large 40 × 185ft allowing the future development of new builds as seen in the neighborhood
ENDLESS POTENTIAL!
PROPERTY DETAILS
• Single Family Bungalow
• 3 Bed & 2 Bath
• Building size ~ 1,700 Sq.ft
• Detached Garage
• Finish Basement
• Lot Size 40ft × 185ft
• Copper/PVC Plumbing
• Gas Furnace 2017
• AC 2015
• 100 amp breaker
HOW does this work?
If you decide you want the property, making an offer is easy.
Contact Hojjatollah Izady regarding your offer, or for any other questions on the property.
We have showings available!
Please DO NOT go directly to the address.
Interested In this Property?
If you have any questions, please contact Hojjatollah Izady:
647-772-9502
hoizady@yahoo.com
.
$870,000
Closing Date: FLEXIBLE
OVERVIEW
Cliffcrest bungalow with prime location! This Scarborough single family home is located minutes away from the Scarborough GO Station and many amenities. This property boasts a large 40 × 185ft allowing the future development of new builds as seen in the neighborhood
ENDLESS POTENTIAL!
PROPERTY DETAILS
• Single Family Bungalow
• 3 Bed & 2 Bath
• Building size ~ 1,700 Sq.ft
• Detached Garage
• Finish Basement
• Lot Size 40ft × 185ft
• Copper/PVC Plumbing
• Gas Furnace 2017
• AC 2015
• 100 amp breaker
HOW does this work?
If you decide you want the property, making an offer is easy.
Contact Hojjatollah Izady regarding your offer, or for any other questions on the property.
We have showings available!
Please DO NOT go directly to the address.
Interested In this Property?
If you have any questions, please contact Hojjatollah Izady:
647-772-9502
hoizady@yahoo.com
.
80,000 Mortgage Borrowers to Hit “Trigger Point” as BoC Keeps Hiking Rates
As the Bank of Canada continues to hike its trend-setting policy interest rate, the cost of borrowing for variable-rate mortgage holders rises in tandem. Now, a number of these borrowers could be facing down their “trigger rate”, when their monthly payments have increased to the point that they only cover the mortgage’s interest, with nothing going toward the principal debt.
In a bank earnings conference call, Neil McLaughlin, the head of Royal Bank of Canada’s personal and commercial banking department, said the lender anticipates “about 80,000 mortgages” will hit this point over the next several months, should the BoC continue its hiking trajectory.
It’s widely anticipated that the central bank will administer at least 75 basis-points-worth of increases before it achieves its neutral range of around 3.25%, with another rate bump assured in its September 7 announcement. The policy rate currently sits at 2.5%.
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As the Bank of Canada continues to hike its trend-setting policy interest rate, the cost of borrowing for variable-rate mortgage holders rises in tandem. Now, a number of these borrowers could be facing down their “trigger rate”, when their monthly payments have increased to the point that they only cover the mortgage’s interest, with nothing going toward the principal debt.
In a bank earnings conference call, Neil McLaughlin, the head of Royal Bank of Canada’s personal and commercial banking department, said the lender anticipates “about 80,000 mortgages” will hit this point over the next several months, should the BoC continue its hiking trajectory.
It’s widely anticipated that the central bank will administer at least 75 basis-points-worth of increases before it achieves its neutral range of around 3.25%, with another rate bump assured in its September 7 announcement. The policy rate currently sits at 2.5%.
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However, as McLaughlin points out, while a considerable number of borrowers could be impacted by their trigger rate, the hit should be minimal, with “an average increase” of $200.
As well, less than a third of RBC’s renewable mortgage balances will mature before 2025, “providing flexibility afforded with time,” stated an investor slide presented on the call.
“Those benefits include wage and income inflation, principal amortization and “proactive client outreach.”
Variable mortgage rates soared in popularity over the course of the pandemic, as the BoC kept its policy rate at a record low of 0.25%. As a result, as of this February, rates as low as 1.3% could be found at the most competitive lenders.
That spurred an uptick in floating-rate debt, especially as housing prices soared; data from the Canada Mortgage and Housing Corporation finds 53% of Canadians who took out a mortgage in the second half of last year chose variable, compared to 34% in the first half of 2021.
However, today’s rates are now in the 4.3% range, and floating-debt borrowers have been directly exposed to that increase, whether through higher monthly payments, or less going toward their mortgage principal.
But, as McLaughlin pointed out on RBC’s call, fixed mortgage rates remain the dominant rate type in the Canadian marketplace, which helps reduce — or prolong — the shock of higher rates on the economy. He stated that as the majority of the bank’s borrowers are locked into fixed rates, they’ll only need to contend with a higher interest rate environment at renewal time.
The Semi-Annual State of the Housing Market report from Mortgage Professionals Canada states that 66% of current mortgage holders have a fixed rate. According to a survey conducted by the organization, 26% of respondents reported having a variable rate, an increase from 21% last year. The MPC study also found that 37% of mortgage holders will need to renew within the next two years and “will likely renew at higher rates.”
However, several prominent mortgage analysts are raising the red flag when it comes to the impact hitting the trigger rate will have on borrowers.
“This ain’t a good thing,” said Ron Butler, mortgage broker at Butler Mortgages, in a tweet earlier today. “Imagine making mortgage payments for five years, the [sic] mortgage renewal date hits and the borrower has a triple disaster. Your mortgage amount increased. Amortization had to go from 30 years to 25 years. All available rates have greatly increased since you first bought the home. Sweet Jaysus, worst possible outcome.”
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As well, less than a third of RBC’s renewable mortgage balances will mature before 2025, “providing flexibility afforded with time,” stated an investor slide presented on the call.
“Those benefits include wage and income inflation, principal amortization and “proactive client outreach.”
Variable mortgage rates soared in popularity over the course of the pandemic, as the BoC kept its policy rate at a record low of 0.25%. As a result, as of this February, rates as low as 1.3% could be found at the most competitive lenders.
That spurred an uptick in floating-rate debt, especially as housing prices soared; data from the Canada Mortgage and Housing Corporation finds 53% of Canadians who took out a mortgage in the second half of last year chose variable, compared to 34% in the first half of 2021.
However, today’s rates are now in the 4.3% range, and floating-debt borrowers have been directly exposed to that increase, whether through higher monthly payments, or less going toward their mortgage principal.
But, as McLaughlin pointed out on RBC’s call, fixed mortgage rates remain the dominant rate type in the Canadian marketplace, which helps reduce — or prolong — the shock of higher rates on the economy. He stated that as the majority of the bank’s borrowers are locked into fixed rates, they’ll only need to contend with a higher interest rate environment at renewal time.
The Semi-Annual State of the Housing Market report from Mortgage Professionals Canada states that 66% of current mortgage holders have a fixed rate. According to a survey conducted by the organization, 26% of respondents reported having a variable rate, an increase from 21% last year. The MPC study also found that 37% of mortgage holders will need to renew within the next two years and “will likely renew at higher rates.”
However, several prominent mortgage analysts are raising the red flag when it comes to the impact hitting the trigger rate will have on borrowers.
“This ain’t a good thing,” said Ron Butler, mortgage broker at Butler Mortgages, in a tweet earlier today. “Imagine making mortgage payments for five years, the [sic] mortgage renewal date hits and the borrower has a triple disaster. Your mortgage amount increased. Amortization had to go from 30 years to 25 years. All available rates have greatly increased since you first bought the home. Sweet Jaysus, worst possible outcome.”
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What Shifting Ontario Housing Markets Mean for Sellers
Over the last several months, rising interest rates have resulted in shifting Ontario real estate markets. What was once solidly sellers’ territory has teetered, offering an opportunity for buyers to pounce with planning and precision.
But just because the province’s markets have moved from a primarily sellers’ stance doesn’t mean that anyone looking to relocate is out of luck.
According to Raj Masrani, Broker of Record in Ontario for FairSquare Group Realty, the trick to listing a home for sale in current market conditions is simple: be pragmatic — and be informed.
“Those who sell just need to be realistic when pricing a home,” Masrani tells STOREYS. “It’s easy to get caught up with what homes were selling for in the last few months, however, the market has shifted, so sellers do need to make some adjustments in their list price.”
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Over the last several months, rising interest rates have resulted in shifting Ontario real estate markets. What was once solidly sellers’ territory has teetered, offering an opportunity for buyers to pounce with planning and precision.
But just because the province’s markets have moved from a primarily sellers’ stance doesn’t mean that anyone looking to relocate is out of luck.
According to Raj Masrani, Broker of Record in Ontario for FairSquare Group Realty, the trick to listing a home for sale in current market conditions is simple: be pragmatic — and be informed.
“Those who sell just need to be realistic when pricing a home,” Masrani tells STOREYS. “It’s easy to get caught up with what homes were selling for in the last few months, however, the market has shifted, so sellers do need to make some adjustments in their list price.”
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On the flip side, Masrani notes that anything a seller prepares to buy will have seen similar price adjustments. So long as the seller enters their transaction with an idea of their real estate priorities, and they understand what those corresponding list prices may look like, they needn’t hold back from entering the market at this time.
Of course, sellers must also consider their location. Depending on where in Ontario a property is being listed, how much its value has shifted will vary.
“It all depends on the area — in the GTA, you’re seeing detached and semi-detached home prices declining more than those of townhomes or condos,” Masrani explains, adding the ever-present real estate truth: “[It’s all about] location, location, location.”
Regardless of where one is listing their home, a few tips Masrani suggests for setup and staging remain consistent.
“Your home should be in tip-top shape,” he says. “Think of it as opening night. Most buyers buy through emotion, so your home should be decluttered, freshly painted, minimalist.”
He also notes the importance of landscaping and curb appeal, particularly at this time of year.
“The lighting of the house is important; change those lightbulbs to 100w, so it’s nice and bright. The ambiance of the home — the music, the aroma — everything matters. And again, really investigate — in detail — your list price. You want to attract the most buyers in the first few days after listing.”
When it comes to the other side of the seller’s situation — purchasing — Masrani encourages not buying firm, and instead putting a conditional offer on a new home when yours hits the market. And then, once you secure a conditional offer on your own home, you’ll have space to firm up your purchase. Above all, he encourages seeking support from a qualified professional.
Beyond this tangible advice, Masrani also offers some general takeaways relevant any time someone is gearing up to sell their home.
“You can never time the market. Do what’s right for your circumstances, and do not panic sell, or buy. Make a well-informed decision,” he says. “Make sure you do your research, and don’t get caught up with what you could have got a few months ago — focus on the now.”
.
Of course, sellers must also consider their location. Depending on where in Ontario a property is being listed, how much its value has shifted will vary.
“It all depends on the area — in the GTA, you’re seeing detached and semi-detached home prices declining more than those of townhomes or condos,” Masrani explains, adding the ever-present real estate truth: “[It’s all about] location, location, location.”
Regardless of where one is listing their home, a few tips Masrani suggests for setup and staging remain consistent.
“Your home should be in tip-top shape,” he says. “Think of it as opening night. Most buyers buy through emotion, so your home should be decluttered, freshly painted, minimalist.”
He also notes the importance of landscaping and curb appeal, particularly at this time of year.
“The lighting of the house is important; change those lightbulbs to 100w, so it’s nice and bright. The ambiance of the home — the music, the aroma — everything matters. And again, really investigate — in detail — your list price. You want to attract the most buyers in the first few days after listing.”
When it comes to the other side of the seller’s situation — purchasing — Masrani encourages not buying firm, and instead putting a conditional offer on a new home when yours hits the market. And then, once you secure a conditional offer on your own home, you’ll have space to firm up your purchase. Above all, he encourages seeking support from a qualified professional.
Beyond this tangible advice, Masrani also offers some general takeaways relevant any time someone is gearing up to sell their home.
“You can never time the market. Do what’s right for your circumstances, and do not panic sell, or buy. Make a well-informed decision,” he says. “Make sure you do your research, and don’t get caught up with what you could have got a few months ago — focus on the now.”
.
WATCH: Recent Changes in the Canadian Housing Market Explained by CREA’s Senior Economist
“The National Aggregate MLS® Home Price Index edged down 1.7% in July compared to June (probably not a huge surprise there), but the decline was smaller than in June, which was the first sign of deceleration on the price side.”
Shaun Cathcart, CREA’s Senior Economist and Director of Housing Data and Market Analysis, breaks down the July 2022 Canadian housing market report.
“The National Aggregate MLS® Home Price Index edged down 1.7% in July compared to June (probably not a huge surprise there), but the decline was smaller than in June, which was the first sign of deceleration on the price side.”
Shaun Cathcart, CREA’s Senior Economist and Director of Housing Data and Market Analysis, breaks down the July 2022 Canadian housing market report.
Is Crypto The Future For Real Estate?
Buyers broke numerous cryptocurrency records in 2021, and 2022 looks bright.
“There is an upward trend of people using digital assets to buy luxury goods,” says Max Dilendorf, partner, Dilendorf Law Firm, who specializes in structuring real estate transactions using cryptocurrencies. “We represent a lot of clients in these transactions as lawyers and escrow agents.”
While Dilendorf recognizes that some sellers may be hesitant to take bitcoin or other cryptocurrencies by virtue of how new they are, “by accepting bitcoin for real estate or any other luxury good, you increase your chance of selling,” he says.
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Buyers broke numerous cryptocurrency records in 2021, and 2022 looks bright.
“There is an upward trend of people using digital assets to buy luxury goods,” says Max Dilendorf, partner, Dilendorf Law Firm, who specializes in structuring real estate transactions using cryptocurrencies. “We represent a lot of clients in these transactions as lawyers and escrow agents.”
While Dilendorf recognizes that some sellers may be hesitant to take bitcoin or other cryptocurrencies by virtue of how new they are, “by accepting bitcoin for real estate or any other luxury good, you increase your chance of selling,” he says.
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In May, a Miami penthouse made headlines when it sold for the equivalent of US$22.5 million in cryptocurrency. In September, the property hit the market again with some renovations and a US$28 million price tag. Again, the realtors would accept cryptocurrency. But one reason this particular deal made headlines is that at the moment, it’s rare.
In Bucharest, Monica Barbu, CEO, Romania Sotheby’s International Realty, is representing a seller who will accept cryptocurrency for the sale of a pop art–themed penthouse. It’s the first luxury property in their office to be made available for purchase by bitcoin, she says.
Barbu says the seller may consider other forms of cryptocurrency, but the preference is bitcoin, since the seller is invested in it already.
In New York City, the seller of a limestone mansion located half a block away from Central Park will accept cryptocurrency. Cathy Taub, senior global real estate advisor, Sotheby’s International Realty–East Side Manhattan Brokerage, represents the seller and said it wouldn’t be the first time her clients have dealt in cryptocurrency.
“Generally, in my experience, sellers who accept crypto think of bitcoin and certain other crypto as digital gold. They have a concern about inflation eating away at their fiat cash,” Taub says. “Given the immense global interest in crypto, there’s no doubt in my mind that it will become increasingly popular as ‘consideration’ for real estate.”
POTENTIAL UPSIDES AND DOWNSIDES
As a medium of exchange, cryptocurrency has benefits. It can be useful for buyers who need to initiate international exchanges and who want to avoid traditional banking fees. Compared with standard wire transfers, cryptocurrency transaction costs are lower. On the other hand, when two American parties conduct a transaction using a digital asset, the buyer will pay capital-gains taxes, Dilendorf explains.
“Under the U.S. tax code, bitcoin is considered property, and so is real estate. It isn’t a cash payment, so it’s a barter where you’re exchanging one type of asset for another type of asset. Both assets have tax rates, so it’s not convenient from a tax perspective,” Dilendorf explains.
Some buyers may also be hesitant to part with their bitcoin—hoping it may go up in value.
“When bitcoin was US$65,000, we were getting a lot of interest from clients who wanted to buy real estate or yachts through crypto,” Dilendorf says. “If bitcoin breaks US$80,000 or US$100,000, I would expect a lot of people to complete these types of transactions.” Early adopters of bitcoin could see that valuation as an excellent time to liquidate and invest in luxury goods or other assets. (In the first three quarters of 2021, bitcoin ranged from US$29,413.29 to US$64,899 per coin.)
A group of researchers at global bank Standard Chartered forecast values will continue to increase, and bitcoin could reach US$100,000 by early 2022. “As a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world,” Geoffrey Kendrick, head of crypto research, Standard Chartered, said in a statement.
Still, regulatory compliance presents an added layer of complexity. “When you make a payment with bitcoin or Ethereum, and the seller accepts it, the seller becomes a minibank,” Dilendorf says. Sellers must complete a KYC—a “know your customer” or “know your client”—check and anti-money-laundering check.
“You can think of this as a title check on a bitcoin. You can see how and where this bitcoin was traded. If the order came from a sanctioned jurisdiction like Iran, it could raise questions,” Dilendorf says. “Naturally, many sellers aren’t equipped to accept bitcoin.”
Thus, Dilendorf says most transactions have involved converting bitcoin into cash to expedite the process of buying real estate, green cards through the EB-5 program, yachts, and art.
.
In Bucharest, Monica Barbu, CEO, Romania Sotheby’s International Realty, is representing a seller who will accept cryptocurrency for the sale of a pop art–themed penthouse. It’s the first luxury property in their office to be made available for purchase by bitcoin, she says.
Barbu says the seller may consider other forms of cryptocurrency, but the preference is bitcoin, since the seller is invested in it already.
In New York City, the seller of a limestone mansion located half a block away from Central Park will accept cryptocurrency. Cathy Taub, senior global real estate advisor, Sotheby’s International Realty–East Side Manhattan Brokerage, represents the seller and said it wouldn’t be the first time her clients have dealt in cryptocurrency.
“Generally, in my experience, sellers who accept crypto think of bitcoin and certain other crypto as digital gold. They have a concern about inflation eating away at their fiat cash,” Taub says. “Given the immense global interest in crypto, there’s no doubt in my mind that it will become increasingly popular as ‘consideration’ for real estate.”
POTENTIAL UPSIDES AND DOWNSIDES
As a medium of exchange, cryptocurrency has benefits. It can be useful for buyers who need to initiate international exchanges and who want to avoid traditional banking fees. Compared with standard wire transfers, cryptocurrency transaction costs are lower. On the other hand, when two American parties conduct a transaction using a digital asset, the buyer will pay capital-gains taxes, Dilendorf explains.
“Under the U.S. tax code, bitcoin is considered property, and so is real estate. It isn’t a cash payment, so it’s a barter where you’re exchanging one type of asset for another type of asset. Both assets have tax rates, so it’s not convenient from a tax perspective,” Dilendorf explains.
Some buyers may also be hesitant to part with their bitcoin—hoping it may go up in value.
“When bitcoin was US$65,000, we were getting a lot of interest from clients who wanted to buy real estate or yachts through crypto,” Dilendorf says. “If bitcoin breaks US$80,000 or US$100,000, I would expect a lot of people to complete these types of transactions.” Early adopters of bitcoin could see that valuation as an excellent time to liquidate and invest in luxury goods or other assets. (In the first three quarters of 2021, bitcoin ranged from US$29,413.29 to US$64,899 per coin.)
A group of researchers at global bank Standard Chartered forecast values will continue to increase, and bitcoin could reach US$100,000 by early 2022. “As a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world,” Geoffrey Kendrick, head of crypto research, Standard Chartered, said in a statement.
Still, regulatory compliance presents an added layer of complexity. “When you make a payment with bitcoin or Ethereum, and the seller accepts it, the seller becomes a minibank,” Dilendorf says. Sellers must complete a KYC—a “know your customer” or “know your client”—check and anti-money-laundering check.
“You can think of this as a title check on a bitcoin. You can see how and where this bitcoin was traded. If the order came from a sanctioned jurisdiction like Iran, it could raise questions,” Dilendorf says. “Naturally, many sellers aren’t equipped to accept bitcoin.”
Thus, Dilendorf says most transactions have involved converting bitcoin into cash to expedite the process of buying real estate, green cards through the EB-5 program, yachts, and art.
.
Bitcoin and Ethereum, the two most common cryptocurrencies used for luxury purchases, are already regulated with the U.S. Securities and Exchange Commission, and as such, there’s more certainty in terms of regulations, Dilendorf says.
In 2022, more businesses could set up in-house support for cryptocurrency sales, or accept mix-and-match currencies for luxury goods, as buyers and sellers alike become more open to it.
For now, Dilendorf says he asks every real estate agent he works with in New York City why they aren’t listing prices in bitcoin. “It’s a marketing pitch, and if someone wants to pay in bitcoin, it doesn’t cost anything to the seller. Why not price it in bitcoin?” he says.
.
In 2022, more businesses could set up in-house support for cryptocurrency sales, or accept mix-and-match currencies for luxury goods, as buyers and sellers alike become more open to it.
For now, Dilendorf says he asks every real estate agent he works with in New York City why they aren’t listing prices in bitcoin. “It’s a marketing pitch, and if someone wants to pay in bitcoin, it doesn’t cost anything to the seller. Why not price it in bitcoin?” he says.
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Leslie St/Elgin Mills Road East
Richmond Hill New Single Family Development
$2,899,990
OVERVIEW
Richmond Hill is home to early learning centres, some of the province’s top-ranked public schools, and prestigious private schools, making it an extremely attractive choice for families looking to raise a family just outside the big city. The area surrounding this houses is also home to a wide variety of extracurricular and recreational activities with the Richmond Green Sports Centre located within walking distance and a local YMCA situated nearby. The community is also home to a local hospital, places of worship, and public libraries.
ENDLESS POTENTIAL!
PROPERTY DETAILS
Size (Sf): 3,460
No. of Bedrooms: 4 Bedroom
Home Type: 2 Storey
Product Type: Detached
Tenure: Freehold
Interested In this Property?
If you have any questions, please contact Hojjatollah Izady:
647-772-9502
hoizady@yahoo.com
.
Richmond Hill New Single Family Development
$2,899,990
OVERVIEW
Richmond Hill is home to early learning centres, some of the province’s top-ranked public schools, and prestigious private schools, making it an extremely attractive choice for families looking to raise a family just outside the big city. The area surrounding this houses is also home to a wide variety of extracurricular and recreational activities with the Richmond Green Sports Centre located within walking distance and a local YMCA situated nearby. The community is also home to a local hospital, places of worship, and public libraries.
ENDLESS POTENTIAL!
PROPERTY DETAILS
Size (Sf): 3,460
No. of Bedrooms: 4 Bedroom
Home Type: 2 Storey
Product Type: Detached
Tenure: Freehold
Interested In this Property?
If you have any questions, please contact Hojjatollah Izady:
647-772-9502
hoizady@yahoo.com
.