Blockchain is the most disruptive technology on the Internet that allows for more secure transactions without intermediaries. It is an encrypted data platform that also supports cryptocurrency. It is certain thet because of all this characteristics Blockchain in Real Estate is a promising industry.
One industry that is already benefiting from blockchain technology is real estate. Because of its transaction capacity and its transparency it can be a great tool to advance the processes between sellers, real estate agencies and buyers.
It will also make it possible for anyone to find all the information about a property when you want to buy or rent it (characteristics, terms of the agreement, payment dates, and rental time). In addition, the person who sells or rents accesses all the client’s information without any intermediaries. If one of the two parties doesn’t comply with what has been established, the property is automatically available, and the contract can be canceled immediately.
What is the Advantage of Blockchain in Real Estate?
The great advantage of blockchain in real estate is based on its capacity to carry out transactions in an agile, secure, efficient, and transparent way. It records the processes in an incorruptible platform; the transactions do not require the intermediation of third parties and are immediate. The great contribution is reliability, protection against fraud, and efficiency.
It will provide a permanent and immediate ‘data room‘ of the property and a more efficient process of payments, especially in international transactions, providing greater transparency, security, and speed. Transactions can be monitored and controlled at all times.
In commercial real estate, it streamlines contract and transaction administration processes. Payments can be received instantly outside business hours. Smart contracts also speed up due diligence processes before a lease and/or sale/purchase, making the verification process faster. The parties involved in a contract can access it with a personal digital key, reducing the possibility of fraud.
The technology is already being used in the registration of property titles. It makes it possible to know who the owner of a particular property is, the legal conditions in which it is located, the permits it has, the materials used for the construction, and its costs.
Alvaro Nunez, Founder and CEO of Super Luxury Group – an acclaimed luxury real estate media network that aims to revolutionize the luxury lifestyle and is incorporating NFT and crypto to their operations-, said to Expoverse that, “The key is to guide our clients on how to invest in a unique opportunity, help create an NFT of the property itself, and put money into virtual land (via Metaverse / Blockchain) as a key to open doors to new trends and possibilities that can be capitalized on.”
Also, using blockchain will make it possible to issue real estate asset securities to which investors worldwide will have access. This initiative will allow liquidity, efficiency, and access to smaller investors and reduce the costs of fine-tuning the real estate market.
How to Invest in Real Estate Using Cryptocurrencies?
There are more than 1,500 digital currencies in the market, each with its own price, depending on supply, demand, and speculation. Although they were born as a form of payment, they have also become a way to invest. And one of these new options is to do so in real estate through tokens or certificates backed by real estate assets.
Platforms where users can acquire cryptocurrencies with fractions of properties, commercial premises, or offices are becoming a reality. Therefore, before embarking on this option, it is necessary to analyze where to put your money.
The model works like this; by tokenizing real property, cryptocurrencies can be traded much like stocks on an exchange, and every transaction can be done online. For example, ATLANT has developed a blockchain platform to facilitate real estate and rental property transactions.
It is recommended to analyze the real benefit of acquiring real estate through cryptocurrencies. When you mix real estate with a cryptocurrency, you would have to, as an investor, ensure that the value of this currency is not affected by something other than the investment project itself – speculation, supply, or demand. If so, it can be a good vehicle.
Before investing, check this first:
- The platform you invest in must issue Real Estate Participation Certificates, which guarantee the property.
- Seek advice from an accountant so that they can explain to you what your tax obligations would be when you carry out this type of operation.
- Remember that anyone who promises you a guaranteed yield or dividend is probably swindling you.
- There are different platforms where you can invest. Look thoroughly into each to make a good choice.
- No investment is infallible, no matter how fashionable it may be. You should analyze if this option fits your profile.
- As with any investment, before entering and placing your money, investigate the company through which you will do it.