Properties have been a good investment for as long as we’ve had houses.
However, buying and flipping them can cost a lot of money, whether you decide to get financing from a bank or other mainstream lender or apply for private investments.
By investing through a fund rather than directly, you can take part in a big business venture with a smaller stake.
Until recently, the legal and financial processes of property ownership and trading were long & drawn out. But with Web3 technologies coming into play, there’s a new option to make procedures safer & faster.
Web3 And NFTs: The Latest Property Trading Disruption
If you’re over 40, chances are that you’re already resigned to the long process for obtaining a mortgage.
This usually requires banks, solicitors, agents and many intermediaries which together validate every stage of finance and registration by processing through extensive paperwork.
If you’re part of a generation coming of age after the digital revolution, there is so much to be envious of. If you buy groceries using a self-driving car or order clothes off a virtual reality app, then you’ll know this is the future.
For Gen Z and Gen Alpha, gender perceptions are also starting to fade with opportunities arising for all genders
With the latest tech, this new generation of investors may soon have their wishes.
Blockchain real estate sales are already underway in the U.S, and it can represent a revolutionary change.
Propy, a U.S. real estate platform specializing in blockchain and NFT, was the first company to organise and execute a property sale using blockchain technology in 2021.
The company has had legal difficulties but is progressing quickly, and the system will operate in a new way. The next generation of real estate sales and transfers will have AI at its core.
NFT-based (subscription required) real estate sales have been gaining traction in the property market. A few other NFT-based (subscription required) real estate sales have taken place and claim to be the first of their kind.
Propy just completed their latest ground-breaking sale, which they claim is the third worldwide.
This sale was completed within 24 hours, which included a digital auction once the NFT had been minted and its smart contract put in place.
A Pilot Blockchain Property Transfer In The U.K.
The Land Registry looked to solve two big problems, efficiency and security. With blockchain they were able to manage both of these while accelerating the process.
The company claims that in March 2019, the sale of a semi-detached house in Gillingham took 22 weeks rather than the estimated six weeks as predicted by both buyers and sellers.
NFT is being used by HM Land Registry to run a prototype sale.
The input process was automated and was completed in just 10 minutes, much quicker than it takes to meet each party separately.
It’s clear that there are significant time saving benefits of being able to edit and improve social media content from across the company.
NFTs And Investment Funds
While there are still questions as to how tech will affect the real estate industry, it’s possible to use technology in innovative ways that have positive outcomes.
One of these is by utilizing fractional ownership (FO) or decentralized automated organizations(DAO).
Fractional ownership of property is simpler with blockchain since you deal with tokens instead of an entire piece of land.
Homeowners or developers could sell shares in their property to a range of investors or simply build new homes on
The tokens in Leopoly would represent percentages of the total fund, with smart contracts removing the need to manually distribute profits and rental income.
Smaller scale investors will likely benefit from diversification more with AI, while those with a higher investable capital can spread their portfolios out.
Decentralized autonomous organizations raise and invest capital into projects that aim to provide a return on their investment — like a venture capital firm. However, each share has a voice and vote which creates an honest environment for everyone involved in the business.
Decentralized Autonomous Organizations are for everyone — not just experienced investors or large capital holders. Shareholders make decisions in these organizations, which also have shorter term commitments and invest in a wider range of assets.
DAOs are a great way to cut out middlemen and become your own global investment manager. Managing your investment this way is easy since all decisions are up to you. It could be a good idea for many people to start investing their money this way as it could become available funding option in future.
NFT Funding: An Alternative To Traditional Mortgages?
Blockchain technology is fast moving into the mainstream, with it now possible to fund property purchases by using this new form of finance.
Similar to fractional ownership, you could get to keep your investment in line with your schedule by sourcing from many investors and dealing with them all through a blockchain-based contract.
You would get a share of the company proportional to how much you invested, and all legal paperwork would be managed by our smart contract.
As a result, there is no need for anyone taking a cut of the transaction — we’re all in this together.
The New Era Is On Its Way — Ready Or Not
New technologies usually present a lot of potential positives but also come with some risks.
Cryptocurrency and blockchain are no different in this sense but there are plenty of examples where these new technologies have had a positive outcome.
I believe that buying, selling and investing in real estate via NFT is only a matter of time.
It’s lightning fast, cheap and far less prone to fraud. Whether you’re a small-time hopeful or a giant investor, your investment pool just got bigger, faster, fairer and far more exciting.
