Miami condos for sale cost $ 31 million, or roughly 560 bitcoins

0

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

Arte Surfside

Two luxury condos are for sale in one of Florida’s most exclusive oceanfront properties for a combined price of $ 31 million – and the developers are accepting bitcoin payments.

The 16-residential, 12-story building in the town of Surfside near Miami is called Arte, and prices start at over $ 10 million each. Developers Alex Sapir and Giovanni Fasciano say interested buyers are welcome to bid 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.

Arte Surfside

Potential buyers have a choice of two apartments. A 6,982 square foot unit is for sale for $ 18.95 million and a second property, about half that size, is $ 11.9 million. Based on its most recent price, this would amount to 560 bitcoin. Both have panoramic ocean-view terraces, large walk-in closets, direct elevator entrance with fingerprint recognition technology, and floor-to-ceiling glass walls.

The equipment of the buildings is just as decadent.

There are indoor and outdoor pools, as well as a rooftop tennis court. Residents of Arte can also take lessons with famous 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.

Arte Surfside

Real estate boom meets crypto boom

Covid-related work and travel restrictions have been good for the real estate industry. Home prices have climbed at an all time high amid a nationwide housing boom.

The surge coincides with the recent rise in the prices of bitcoin and other cryptocurrencies, and the two trends are converging in Miami, which is trying to position itself as the crypto capital of the United States.

Miami real estate mogul Marc Roberts accepts crypto deposits for his condos, claims he sold a penthouse for $ 22 million in crypto and co-owner of E11even, which allows clients to trade in bitcoin.

There are also sites that have made it easier to locate properties available for purchase with crypto.

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

Arte Surfside

“We were overwhelmed by the number of calls we received from qualified buyers immediately after announcing our ability to facilitate cryptocurrency transactions for Arte condominiums,” said Sapir. “Real-world crypto transactions have not yet fully integrated with the general public, so it’s clear that major holders around the world are careful when new trading opportunities open up. “

The real estate couple told CNBC they believe they are “approaching a new audience looking to lock in their profits in coins by investing in a stable asset like real estate.”

The Arte team said the crypto transaction was smooth and even faster than a traditional cash transaction. The developers received an offer for the penthouses days after announcing they would accept crypto, and the sale closed two weeks later.

Real estate developers will not reveal the identity of the owner, or what form of cryptocurrency has been accepted for the property. However, they told CNBC how they proceeded with a virtual token real estate sale.

The deal is structured between two portfolios and the funds are converted to US dollars before the deed is transferred. At this point, the conventional mechanism of any real estate transaction kicks in, such as financing in escrow and disbursement of payments by a escrow agent.

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

Arte Surfside

But not everything is smooth.

Fluctuations in the price of cryptocurrency can create pricing and settlement issues. Additionally, the anonymity and privacy built into crypto transactions can make it difficult to track the source of funds, which is necessary for compliance checks. One possible solution is to transfer the conversion risk to the buyer and then perform independent compliance checks.

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

Arte Surfside

Capital gains affected

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

The IRS treats virtual currencies like bitcoin as property, which means they are taxed the same way as stocks or real estate.

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

At the time of a transaction, if the buyer’s crypto holdings have appreciated in value since the tokens were first purchased, this would subject the sale to long-term capital gains taxes or short term.

The best option, according to Chandrasekera, would be to leverage his crypto holdings in a real estate transaction.

“If your net worth is tied to cryptocurrency, I think it makes more sense to get a loan against your crypto and spend the money to buy a property,” he said. “This is because getting a loan against your crypto is not a taxable event. You get cash without triggering a taxable event.”

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

But in either case, the buyer will still have to repay the loan over a period of time. Chandrasekera says the rates may be higher than traditional mortgage rates, but “it’s ideal for people who don’t have a good credit history or who want to own a home without going through traditional institutions.”

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

Arte Surfside

Leave A Reply

Your email address will not be published.