Can You Buy a House With Gold? Your Gold and Real Estate Asset Questions Answered
Posted at 14:12hin Uncategorizedbypeggyhoag
The value of gold is at a high and you’re wondering, can I use my gold assets to buy a house?
The answer is yes!
Your next questions are likely:
- How do you use gold assets to buy a house?
- Should you use your gold assets to buy a house?
- Is using gold assets to buy a house a common practice?
In this guide, we will share answers to all of your questions and more.
Table of Contents
- The History Behind Purchasing Homes With Gold
- Can You Use Gold to Buy a House?
- Can You Use Gold as a Down Payment?
- How You Can Buy a House With Gold: 2 Basic Steps
- Step #1: Liquidate Your Gold With a Professional Bullion Dealer
- Step #2: Work With a Trusted and Knowledgeable Real Estate Team to Buy Your New Home
- PEGGY HOAG REAL ESTATE: Your Trusted Source for Luxury Real Estate in Oregon and Washington
The History Behind Purchasing Homes With Gold
Real estate and gold are two assets that have had a historical relationship for decades. Gold has been used to purchase homes since the 1800s.
You can calculate how much gold it will take to purchase a home at any given time based on the real estate to gold ratio. Click here to view the real estate to gold ratio from 1890 to the present day.
Can You Use Gold to Buy a House?
Yes, it is possible to purchase a home with gold. However, you can’t just take your gold stash to the title company for processing. The gold must first be liquidated and transferred directly to the title company in U.S. dollars.
Can You Use Gold as a Down Payment?
Absolutely! Once the gold has been liquidated and transferred into U.S. dollars, the title company will accept it as a down payment.
Why Would You Want to Buy a House With Gold?
Gold and real estate are both hard assets, meaning they are tangible resources with fundamental value. Historically, these assets have been found to be inversely related at times. As one asset becomes over-valued, the other tends to become under-valued.
For example, in 2011, 96 ounces of gold was enough to purchase the average single family home. That’s only 18% of the amount of gold it took to purchase a single-family home in 2001, which cost a whopping 543 ounces of gold at the time.
If the stars align and your home purchasing window falls during a time when the real estate to gold ratio is favorable, your gold assets could be used to purchase a house at a lower cost than cash.
Buying an Investment Property With Gold
Remember how gold and real estate can sometimes have inverse value? This aspect can make buying an investment property with gold a particularly attractive option when market conditions are right. One can verify market conditions by looking at the Gold vs.Case-Shiller Home Price Index.
If you’re planning on using your gold assets to purchase an investment property, you need a reliable property management company that is going to work hard to protect your investment.
This is where the PEGGY HOAG REAL ESTATE team comes in. Our property management team helps clients:
- Continue building equity in their properties
- Find and maintain long-term tenants
- Reduce the costs associated with owning a second home
- And more
Contact us today to learn more about how we can help you manage your investment properties in the Portland Metro Area and Clark County.
Is It Common to Buy a House With Gold?
Surprisingly, people are not liquidating their gold assets on the regular to purchase homes. Using gold to buy a home is a strategic investment move. As mentioned above, the market conditions have to be favorable to financially benefit from liquidating gold assets to purchase a home.
How You Can Buy a House With Gold: 2 Basic Steps
You can use your gold assets to purchase a home in two simple steps.
Step #1: Liquidate Your Gold With a Professional Bullion Dealer
You first must liquidate and transfer the asset into cash to use your gold assets to purchase a home.
Unfortunately, gold assets aren’t something that can be exchanged for cash at most banks. While some private and community banks may deal with transferring gold, many banks are not willing to bear buying risks due to potential counterfeits and incorrect evaluations.
However, you won’t want to try to sell your gold at a pawn shop or “cash for gold” business. These types of businesses will offer less money for your gold so they can re-sell it at a mark-up and make profits.
Look for a professional bullion dealer that will offer you a fair market price for your gold. You should always verify:
- That the bullion dealer you are working with is experienced in buying and selling gold
- Whether there are any fees associated with your transaction and how much they will cost you
- That they are an accredited precious metal dealer
Click here to browse accredited and professional bullion dealers in the Portland Area.
Step #2: Work With a Trusted and Knowledgeable Real Estate Team to Buy Your New Home
If you’re planning on liquidating gold assets to purchase a home, you want to make sure it pays off.
Like gold, real estate is an investment. A knowledgeable real estate team can help make sure you’re investing in a high-value, luxury property that you also happen to love!
PEGGY HOAG REAL ESTATE: Your Trusted Source for Luxury Real Estate in Oregon and Washington
PEGGY HOAG REAL ESTATE is the “gold standard” for luxury real estate.
If you’re looking to use your gold assets for a down payment or to purchase a luxury home in Oregon and Washington, our highly experienced team of luxury realtors can help.
PEGGY HOAG REAL ESTATE has provided an unparalleled luxury home buying experience in the Pacific Northwest for over 30 years. Whether you’re interested in buying a home in the Portland Area, Clark County, or Columbia Gorge, our team can make finding the perfect luxury home for you a reality.
