NFTs: How the real estate industry could be revolutionised
Yesterday we introduced a new theme to the blog, Non-Fungible Tokens (NFTs as most of us know them), and if you haven’t read it yet, I recommend you give it a quick read before carrying on with today’s article to fill in the gaps in context. As a quick reminder for everyone to make sure we are all on the same page, these blockchain based tokens are unique and can be created and bought by anyone with Ethereum cryptocurrency, an interesting concept which really took off this year.
Today we will take this idea and dive into real-world industry, more specifically, real estate, and hopefully by the end we will both be a bit more prepared for what could well be reality in the near future. As of right now, if any of us were to want to move to a new house, we would get in touch with a real estate agent, put our place on the market, view a few possible candidates for our new home and then comes all of the paperwork, contracts, deposits etc. Basically, it is not a quick process, so surely a revolutionary change would be welcome, right?
But why NFTs?
If I quickly jump back to yesterday’s article, we learned how NFTs store more information than a cryptocoin, and this information leads to the uniqueness of the token. Taking this and adding it to the fact that they hold the credentials of the person who owns the token on the blockchain, secure documentation could be transferred onto NFTs so that, for example, property deeds can be held in the form of a token, immediately there is less paperwork and as a by-product less physical printing is necessary which would harm the environment.
Can NFTs be used in real estate investment?
You’ll be glad to know the benefits to NFTs do not end simply with the identification side of things, for any of you interested in investing in property, NFTs could be the way forward. This does seem like something from a sci-fi movie, but it actually does seem to make a lot of sense once it’s been explained so hear me out.
Let’s use an example, the year is 2030 and Paul from the UK wants to sell a share of his house to investors who want to be involved in a fractional ownership situation, how does he do it? It is possible that by generating NFTs of certain values, he can sell part of the value of his house and investors who buy the tokens can make money from rental and also benefit from gains Paul should make if he were to sell the house and actually move.
It’s an interesting idea which I’m sure we can all agree seems intriguing, and although this may not be the way you’re investing in your next property, it is something worth remembering for when the process becomes a little clearer, because one thing is for certain, industry is changing, and NFTs look like the light at the end of the tunnel for real estate investment.
So, if you are interested in finding out more, contact us today! Below this article you will find a link to set up a free fifteen-minute consultation with us to discuss your options further. At Creimerman, our team of professional global citizens would be happy to help you with your personal or professional cross-border ventures and help make them a success.