Blockchain technology has gone far and beyond Bitcoin and is now making new ways. It has reached real estate markets as well. Both residential and commercial real estate markets have risen substantially worldwide showing strong signs of growth and appear to be on a continued upward course.
According to the International Monetary Fund (IMF), the global housing market has continued its long recovery from the massive sell-off of 2008 and is now moving to a healthier and steadier pattern. Moreover, rental lease prices have gone up mostly because low supply and higher demand of logistic spaces which has resulted in higher prices for commercial and residential real estate properties.
This sounds like a good time invest, right? But, let’s analyse a few thing and see if Blockchain technology can bring betterment to the industry.
- Be careful while you invest in a real estate property. Sure it’s becoming easier to access foreign real estate markets while sitting anywhere in the world but making sure you have the right legal protections in place while you sit in another part of the world is not an easy job.
- Investing in a real estate property that is all-or-nothing deal is risky. Try and avoid that. Buying shares in a property rather than the entire property is better and less risky. One option that allows investors to buy shares in real estate is a Real Estate Investment Trust (REIT) which is a company that allows investors to buy shares in real estate and thus letting them own partial stake. REITs have been a really popular way among real estate investors but the growing risk associated with their methods and their high amounts of profits for themselves forced investors to choose a different route.
- This is where the newer technology and players in the industry comes in. A new player in the market real estate blockchain ICO Etherty has revolutionised the shareholding in real estate. They have ‘tokenized’ real estate transactions similar to using Bitcoin as digital currency and involve Blockchain technology. Etherty has created a platform that allows investors to purchase shares of real estate all over the world using tokens. Just like Bitcoin, investors buy tokens using Ethereum and then use it as digital currency to buy shares in real estate anywhere in the world.
- This system of Etherty’s using Ethereum technology and tokens is better than REITs mainly because they don’t have a centralised system of taking profits and that attracts the investors because it reduces the fee per transaction and also allows them to cash out any time.
- Also, Etherty’s system which is based on blockchain is way more secure and allows buyers, sellers and renters to store legal and important real estate documents for free. This digital method of uploading and accessing documents is secure and transparent and does not allow anyone to alter them.
If you want to invest in real estate and wish to do so overseas, using Etherty’s tokens is the best way. Its high time investors dove into this market now as the supply and demand numbers suggest.