You Can Now Own Your Home On The Back Of Bitcoin

(MENAFN- Khaleej Times)

It's a very exciting time right now for those interested in property‭; ‬we are seeing an intersection in the fields of‭ ‬crypto and real estate‭. ‬The two seemingly separate worlds are beginning to merge in exciting and‭ ‬
meaningful ways‭.‬

On the one hand‭, ‬fractional property investing on the blockchain is starting to give regular people access to real estate in ways that were never possible before‭. ‬And‭, ‬on the other‭, ‬using Bitcoin‭ ‬-‭ ‬and potentially other crypto‭ ‬-‭ ‬to secure a mortgage outside of the traditional banking system is no longer a pipe dream‭.‬

It's still in early stages‭, ‬yes‭. ‬But it's happening‭. ‬And for someone like me‭, ‬who has been boxed out of the real estate market in both Canada and the UAE for very different but equally frustrating reasons‭, ‬the potential feels enormous‭.‬

Locked out of the system

As an expat‭, ‬buying property back home is pretty much off the table‭. ‬The required down payment is staggeringly high‭ ‬-‭ ‬35‭ ‬or even 50‭ ‬per cent for non-residents in many cases‭. ‬I can't justify tying up that much capital‭. ‬In the UAE‭, ‬where I've lived for years‭, ‬while there are some ready-to-use properties‭, ‬many options are sold off-plan‭ ‬-‭ ‬meaning I'd be putting down big money on a development that won't be ready for two to three years‭, ‬minimum‭. ‬That leaves me paying rent and paying off a property I can't live in yet‭, ‬which again‭, ‬just doesn't work for me‭. ‬I'm also a long-time freelancer who just established my own business‭: ‬another barrier to getting a traditional mortgage‭. ‬

This is what the current system looks like‭: ‬rigid‭, ‬expensive‭, ‬and built around the assumption that everyone is salaried‭, ‬settled‭, ‬and playing by old rules‭. ‬But I don't live that way‭. ‬And I'm not alone‭.‬

So‭, ‬when I hear about the ability to invest in property through blockchain‭, ‬or to use Bitcoin to back a mortgage and actually buy a home‭ ‬-‭ ‬without involving a traditional bank‭ ‬-‭ ‬it sounds like something that could actually work‭. ‬

Blockchain buys

Let's start with fractional ownership‭.‬

Platforms like Lofty in the US and Prypco in Mena are tokenising real estate‭ ‬-‭ ‬turning ownership of real-world properties into digital tokens you can buy‭, ‬sell‭, ‬and earn income from‭.‬

Lofty works by offering shares in US rental properties where you earn daily passive income in USD Coin‭. ‬And if you want to sell‭ ‬your shares‭, ‬you can do that on its secondary marketplace‭. ‬It's global‭, ‬permission-less‭, ‬and on-chain‭. ‬With Prypco‭, ‬you can invest in property and buy and sell real estate tokens starting at‭ ‬Dh2,000‭.‬

With Prypco‭, ‬you can invest in property and buy and sell real estate tokens starting at‭ ‬Dh2,000‭"

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Companies are busy building infrastructure for fully on-chain real estate transactions‭ ‬-‭ ‬even including title deeds on the blockchain‭. ‬They're moving towards a future where you could purchase property directly through your digital wallet‭, ‬without title companies‭, ‬agents or reams of paperwork‭.‬

This is the direction we need to go‭. ‬It's more inclusive‭, ‬more transparent‭, ‬and infinitely more flexible than what we‭ ‬
have now‭.‬

I'm not invested in any of these projects yet‭, ‬but when the right opportunity comes along‭ ‬-‭ ‬one‭ ‬that fits my life and values‭ ‬-‭ ‬I'll be ready‭.‬

Mortgage minus a bank‭ ‬

Here's where it gets even more exciting‭: ‬using your Bitcoin to get a mortgage‭. ‬You collateralise your Bitcoin‭, ‬get a mortgage‭, ‬and buy your home‭ ‬-‭ ‬no credit check‭, ‬no bank‭.‬

Instead of selling off your Bitcoin‭ ‬-‭ ‬and missing out on future upside‭ ‬-‭ ‬you use it as collateral to borrow fiat‭, ‬keeping your Bitcoin intact and growing‭. ‬It's the best of both worlds‭. ‬And it means that people like me‭, ‬who are locked out of traditional lending‭, ‬might finally have a shot at buying a home‭.‬

Globally‭, ‬Ledn‭, ‬Figure‭, ‬Helio,and XBTO are all working on some version of this‭. ‬Ledn‭, ‬for instance‭, ‬is working on a Bitcoin mortgage product that lets you combine Bitcoin and real estate collateral to qualify for a loan‭.‬

I'm still researching where this is at in the Mena region‭, ‬but we're on the cusp‭. ‬Just this summer‭, ‬global Web3‭ ‬venture capital and market-making firm DWF Labs announced on X that they would be‭ ‬offering the first-ever crypto-backed mortgage in the region‭.‬

No need to ever sell digital gold‭. ‬Yes‭, ‬there's risk‭ ‬-‭ ‬market volatility‭, ‬margin calls‭, ‬others I can't foresee now‭ ‬-‭ ‬but the mechanisms are workable‭. ‬And they are only going to evolve and improve as the space matures‭"

And let's not forget‭: ‬people are already borrowing against their Bitcoin‭. ‬A number of companies offer Bitcoin-backed loans today‭. ‬You deposit your BTC‭, ‬receive stablecoins or fiat‭, ‬and pay back over time‭. ‬Some people have no intention of ever paying back their loans‭; ‬instead‭, ‬they are banking on Bitcoin rising‭, ‬and refinancing annually‭ ‬-‭ ‬until death do them part and the whole thing gets repaid‭.‬

No need to ever sell digital gold‭. ‬Yes‭, ‬there's risk‭ ‬-‭ ‬market volatility‭, ‬margin calls‭, ‬others I can't foresee now‭ ‬-‭ ‬but the mechanisms are workable‭. ‬And they are only going to evolve and improve as the space matures‭.‬

Why it matters

This isn't just about technology‭. ‬It's the shift in power‭. ‬For people like me‭ ‬-‭ ‬self-employed‭, ‬global‭, ‬financially aware‭, ‬but not conventionally bankable‭ ‬-‭ ‬these tools open up new doors‭. ‬They offer more than just convenience‭. ‬They offer agency‭.‬

Instead of being boxed out of the system‭, ‬I get to play a different game‭. ‬One that's more aligned with who I am‭, ‬how I live‭, ‬and what I believe about the future of money‭.‬

The current system doesn't work for me‭, ‬and many people who want to invest in real estate‭. ‬But this new one just might‭.‬

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