Real Estate with NFTs
let’s first look at the some of the problem’s in the Real Estate.
- Either selling or buying property the paper work is heavy. Takes a lot of time. As markets move fast this time delay in deal makes losses to business and individuals.
- You can’t fractional own a property which limits you purchase power.
- No historical data of previous sell prices.
Let’s look at how blockchain solves a this problems
Secure, High-Speed Transfers
With NFTS, transfers of assets are secure and almost immediate. Imagine how you currently buy a property. By traditional methods, it can take weeks and even months to go through the complete process. Even with an agreement in place, signing and exchanging contracts can take a couple of weeks.
For assets and payments — using crypto or fiscal currency — you can make those transfers without the traditional middleman. Imagine how much time you could save? I believe NFT has the potential to deliver a far more cost-conscious option.
Fractional Ownership
One of the key practical uses is how investors can organize multiple investor projects. Fractional ownership tokenization breaks down each property into tokens that operate like shares.
Splitting a single deed into tokens offers advantages to joint investors but also for shared ownerships (e.g., joint mortgages between married couples or partners). Smart contracts can include various elements with their own rules and automation. For example, they could hold individual parties independently responsible for their contributions, and where multiple investors are involved, hold each to account over majority vote decisions.
It should be noted that entire asset tokenization is one of the regulatory areas that demand attention in these early stages, where, for now, fractional ownership tokenization is managing to take a side step around that particular area of legislation.
Historical data
Since all the transitions are recorded on chain. All the data about previous buyers and prices can accessed.
Cool other thing possible
Royalties. Agents and brokers who help consumers to NFT their homes could be rewarded with royalty fees automatically paid to their digital wallets automatically when the NFT is bought or sold. These “NFT Miners” can receive small royalties for every future purchase as compensation for packaging all of the data and the property to make it transferable.
Defi loans: Taking loans by staking property NFTs
Still there are many regulation clarity required around Real Estate property as NFTs.
