NFTs x Real Estate: Part 2
NFT meets real estate
The realm of Web3 is beginning to change the way markets work, and the real estate space is no exception to this rapid evolution. The ease and ability to prove ownership via NFTs has been a massive game change to the real estate industry.
Through NFTs, the need for layers of intermediaries including estate agents and solicitors is abolished, significantly simplifying the transaction between property owner and buyer — not to mention, eradicating exorbitant fees in the process too.
The use of NFTs in the property market allows for fractional ownership in properties, virtual real estate and even NFT mortgages in the near future!
Fractional Ownership
Fractional ownership is a strategy that involves several unrelated parties to share in and mitigate the risk of ownership of high-valued assets, typically real-estate. These unrelated parties that are shareholders of the property, share the benefits of the asset such as usage rights, income sharing, priority access, and reduced rates. These benefits received by fractional owners are comparable to those of timeshare owners.
Through real estate tokenisation, tokens on the blockchain are assigned to real estate properties that are either under construction or already in existence. These tokens will represent fractional ownership of these real-world properties and buildings.
Due to the fact the tokens are backed by real-world assets, the value of the token will fluctuate and vary depending on the performance of the asset. Fortunately, with the utilisation of blockchain technology, the transfer of ownership is much smoother and reliable.
These real estate tokens can represent different things in the property market. From a portion of the property deed to equity interest in a legal entity or even ownership of collateralized debt, the token can be in any form of an asset related to the particular property or building.
Benefits of fractional ownership
- Liquidity
- Proof of ownership
- Reduced Costs
- Market Security
- Diversified Portfolios
For more information on the real estate market and how you can be more involved in the metaverse through real-world assets, please visit the Bricktrade website to find out more: https://bricktrade.co.uk/
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About Bricktrade
Bricktrade is the UK’s first property investment platform that is set to revolutionise and reinvent the purchase of real-world assets. Bricktrade will facilitate the tokenisation of real estate assets, opening them up to the possibility of investment from crypto market participants whilst simultaneously providing real asset-backed investments, as well as allowing property purchases entirely funded by cryptocurrencies.
