10 Ways Blockchain is Revolutionizing Real Estate
For the past ten years, blockchain and cryptocurrency have grown and become increasingly relevant in today’s economy. Blockchain has changed from an obscure currency used mainly online to a brand new, transparent way to make business transactions. The real estate market has not been left out in this economic revolution. Blockchain has been providing significant improvements to real estate; from more accessible forms of investment to faster transactions, we’ll explore the different ways blockchain and crypto are revolutionizing the housing market.
- Tokenizing real estate
Tokenizing real estate through blockchain has made transactions significantly easier to trade, sell, and liquify. Not only does it make transactions more secure, but it allows for faster processing. Tokenization can also divide real estate properties into tokens that can be purchased independently instead of large properties in whole, like in the traditional market.
- Online real estate transactions
While typically, real estate transactions require hefty paperwork and searching for the right people to connect with, blockchain is bringing the whole process online. Not only does this process save time, but it makes transactions more efficient and straightforward.
- No Middle Man
Without the need for intermediaries such as; agents, lawyers, or banks, blockchain makes the process of investing in properties all the more affordable; there’s no longer a need to pay extra fees and individuals to secure an investment. Since real estate transactions can be completed solely online with all paperwork necessary covered, investing in properties becomes more efficient.
Real estate has long been considered an illiquid asset, making it an inaccessible form of investment for most. By making real estate assets liquid, they can be sold and traded much easier. Buyers don’t need to afford the entirety of the property and can invest in small fractions. Being able to divide property investments easily makes these investments more affordable and manageable.
- Smart Contracts
Smart contracts take away the hassle of mountains of paperwork, fees, lawyers, and agents to navigate them. These contracts can be drafted online to meet any legal and financial requirements of any state that considers smart contracts admissible records.
- Invest in real estate faster
Closing a property sale can take up to a few months; blockchain reduces that time frame to just a few moments. Investors no longer have to jump through legal hoops and trench through finances and filing paperwork; the time to complete a real estate transaction is cut in half.
- Affordable investing
Fewer fees, shared assets, and decentralized networks mean investing in real estate has become much less costly. What usually would be a long process of saving up and budgeting finances to afford a property has become as simple and cost-effective as investing in stocks. Investing in real estate is no longer just for wealthy corporations and individuals.
- Investment accessible to all
With faster processing, affordable investment portions, and safer transactions investing in real estate has become increasingly easier to understand and take part in. Blockchain is creating an investment market that is not just open to those with the time and money necessary to cover all the fees and steps that go into property investment. With the added security of blockchain and smart contracts, all a potential investor needs is the money to invest in their desired property share.
- Increased transparency
Decentralization means that information is stored on the blockchain and is accessible to everyone. Decentralized networks are also well known for their security, making real estate transactions more transparent than ever before. Investors can now access all of their data from one place where third parties cannot interfere with assets, pricing or information.
- Partnered ownership
Buying and selling an entire property can be time-consuming and costly. Sellers can fragment their properties by liquifying real estate assets, allowing multiple people to invest in a single property. Shared investments are cheaper and allow for a shared responsibility to manage a said property, saving money on upkeep and maintenance costs.
Real estate investment is now more secure and has opened to wider audiences by making transactions more convenient and efficient. Anyone can buy a share in real estate faster, more securely, and cost-effectively than ever before in the property market.