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Been diving down the mortgage rabbit hole again lately

I’ve learnt about “alt doc” loan structures here in Australia

Essentially debt that can be issued against 1) a property and 2) an accountants signature

It’s very helpful for people who don’t want to sell BTC & might struggle to show serviceability

You certainly get stung on the interest rate of 8% plus (but would you rather pay for a more expensive loan by a few basis points or sell BTC & lose the cap growth potential?)

The irony being a 150k aud salary is easier to get a loan against than a strong balance sheet…

🤔

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Discussion

Low Information Voter 1y ago

I can see a lot of good arguments for paying more and keeping the BTC. If the worst happens and the bank forecloses, you still have the BTC.

Just make sure there's no KYC breadcrumb trail...

Jake Woodhouse 1y ago

Or the flip side of that, if you use BTC to leverage, and get margin called

You lose the BTC, which is bad, but what’s the point of money? To buy things

So if you keep the house and lose the BTC later down then maybe it’s a fair trade

Quite a few variables to consider

The Ben Gunn 1y ago

and your 8% reflects the flow as it is - not as it could be, that is also something you can expect to fall.

These are bitcoin's overnight funding markets emerging.

Jake Woodhouse 1y ago

Can you detail this a little further. In this idea:

What is the flow?

What is a “funding market”?

The Ben Gunn 1y ago

fiat money a very simple market for the overnight price of money, very deep liquid markets usually. Literally the price to borrow money from the close to the next open.

very similar structure to the one youre describing with a non property mortgage.

and being that it is new/unique, you could assume that a larger market will bring more flow (volume), and desks might compete to push that price down to the borrower.

Jake Woodhouse 1y ago

Brilliant

Startup opportunity?

No doubt the fiat, btc, real estate rails could do with improving

Plus plenty of demand from people who’s btc is appreciating