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By Ieva Ernestovska
Just a few years ago, it was inconceivable to own fragments of a property and trade it any time without enduring high transaction costs. Real estate tokenization makes it possible! But how?
Tokenization of real estate means taking a physical property, splitting its value into shares (tokens), and selling these tokens to investors all over the world. Similar to the stock market where one would buy shares to own a fraction of the company, these security tokens represent shares of the real estate behind it.
Once purchased, the investor officially becomes a fractional owner and can claim dividends earned, make a profit on capital appreciation, and trade (buy and sell) tokens as they wish.
Where there used to be a lot of paperwork and man-hours involved to get everything done rightfully and legally, the blockchain with so-called "smart contracts" carries out all transactional activities without any human intervention. That means no more lengthy paperwork, long waiting times, and expensive middlemen are involved in the process, making real estate investing available and affordable to anyone.
Coreestate is a great example of how undervalued properties can be sustained, liquidated, and owned by everyday people who thought rental real estate investing was never attainable for them. Their recently launched tokenization project GREV55 represents a modern, spacious 5-apartment building complex situated in Velje, Denmark. So anyone who undergoes a quick KYC process on their platform can invest and become a fractional owner in a real estate property of their choice for as little as €100.
Real estate tokenization eliminates many of the typical entry barriers including unnecessary notary visits, considerable transaction costs, land transfer tax, and many other issues that no one seemed to address until the rise of technology. Before investing, make sure to do your own research first or contact a financial advisor to help you evaluate your options.
Author Bio
My name is Ieva Ernestovska, head of marketing at Coreestate. Crypto and NFT enthusiast and investor. Website - https://coreestate.io/
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.