Tokenization Of Real Estate: Based on Blockchain
Investment of money in real estate itself is a great way,
The investment that leads to only increase the value of that asset.
But because of high values, real estate assets are difficult to liquidate.
Tokenization has the great potential to convert this illiquidity to liquidable
With tokenization the opportunity for the investors is truly global.Anyone who have
the sufficient capital can buy,sell,hold the real estate anywhere in the world via internet.
so,let us understand what is Tokenization really means in real estate.
for this we take one simple example.
Consider the above picture,suppose the owner of the single property wants to sell his property,then he need one potential buyer/investor which is difficult to get,because the high price of the property.So dividing the entire property into multiple tokens(virtual) leads to offer the fractional ownership to the small potential investors into the property.
Now you got some idea about tokenization in real estate.
A virtual token is simply the fractional ownership of the property/asset.This fractional ownership is really helpful for the investors who could not otherwise participate into the bigger investments in real estate.
Advantages of tokenization & thanks to the Blockchain:
Thanks to the blockchain technology,because it is present beneath of the tokenization.
The presence of Standardized smart contracts in the blockchain enables to sell ,buy the real estate tokens and do not have to be individually negotiated which is going to reduce the transaction cost substantially.