The use of digital assets has been booming for several years now and the real estate tokenization has become a global trend.
It is no secret that the use of tokens and various types of digital assets. This has become much more than a global trend. This has led to the evolution of traditional investment mechanisms, including real estate. For some years now, digital assets have completely changed the ways of transacting and even investing. The emergence of cryptocurrencies, tokens or even NFTs has become completely normal nowadays. Investing has changed dramatically with the advent of technology. It is no longer necessary to buy a real asset. You can purchase digital assets linked to the value of the real asset.
Something similar is happening with the real estate market. Just as images such as NFT have been tokenized, real estate is being tokenized. This may dramatically change the way we invest in the real estate market.
What is real estate tokenization about?
Real estate tokenization is, in simple terms, a modern way of carrying out a fractional real estate investment. In this way, a physical asset, such as a property, is converted into several digital tokens. This means that everyone who owns a token owns a share of the financial capital in that property.
This has made it increasingly easy to access real estate investments. Since it is not necessary to make a huge investment to buy a token on a property. In some cases, properties can be split into many tokens, so there can be many users investing in parts of the same property and generating returns on their investment. As the value of a property is fractionalized, the amount that an investor who wishes to acquire a part of the property has to contribute is lower. This makes it a much more democratic and accessible market.
It is well known that real estate investments are among the most expensive for ordinary investors, as not everyone can afford to buy a shop or a flat. With tokenization, it is no longer necessary to purchase the entire property in order to make a real estate investment.
Advantages of real estate tokenization
The advantages of real estate tokenization are more than clear. Firstly, as we have already mentioned, there is the possibility of accessing the real estate market at a much more affordable price. Thanks to tokenization, it is not necessary to purchase an entire property, and the investment is customizable with lower entry tickets.
By making an investment through real estate tokenization, it is possible to generate passive income. As with any real estate investment, the idea is to make a return on the capital it generates. In this way, if the property is rented out, the token owner will receive the profits corresponding to the value of the token held based on the total value of the property.
In many cases, when making a fractional investment in a property, it is necessary to hire an administrator to manage profits . This is no longer necessary in the case of real estate tokenization.
Trading in digital assets also tends to be much easier than in the traditional way. Thanks to these technologies it is much simpler to buy and sell parts of a property.
How to invest in real estate tokenisation?
As an innovative means of investment, it is common for there to be doubts about how to access these markets. There are specific platforms for investing in real estate tokens.
Bimount, for example, is characterized as a platform that offers trust and transparency with its technology. It gives you the opportunity to tokenize your assets and list them globally, while offering investors greater security through the use of blockchain technology.
Asset tokenisation has become one of the biggest trends in the investment world in recent years. Today, it has been possible to tokenize very simple things such as images, gifs or even memes. This technology has evolved to the point of being able to tokenize high-value assets, such as real estate.
When it comes to real estate tokenization, there is a great investment opportunity, as there are currently very few tokenized properties worldwide. It is evident that, little by little, the market will expand, and these types of tokens will be increasingly sought after and coveted. The demand for asset tokenization is increasing, so token values could rise significantly in the coming years.
That’s why many investors are looking to anticipate these trends and get their hands on a large number of real estate tokens.
If you are a digital investor, we recommend that you take a closer look at real estate tokenization, as it can be a unique investment opportunity.