Currently, real estate is divided into investment units and sold to many people through cryptocurrency technology becoming a “craze” in the market. This method is called real estate tokenization on the blockchain platform.
So what is real estate tokenization?
Benefits of real estate tokenization?
To better understand the form of real estate tokenization. Let’s find out with “House Now” through the sharing below!
Currently, real estate is divided into investment units and sold to many people through cryptocurrency technology becoming a “craze” in the market. This method is called real estate tokenization on the blockchain platform. To better understand the form of real estate tokenization let’s find out with “House Now” through the sharing below!
1. What is real estate tokenization?
Tokenization is the process of creating, distributing, and managing digital tokens that represent owners of real estate assets. Replacing traditional paperwork real estate buyers and sellers can use tokens to make transactions in one process.
A token is a cryptocurrency that represents an asset. In the real estate tokenization process the token can represent the right to share in the profits earned from the use of the property. Equity interest in a legal entity that owns the token real estate. Interest in a tokenized debt instrument or ownership of a unit in real estate.
2. Benefits of real estate tokenization
Real estate tokenization is expected to create a revolutionary know-how in the field of real estate investment on a global scale. Providing outstanding advantages for participants compared to modern investment know-how.
2.1. Real estate tokenization – Low investment capital
The nature of real estate is tokenized allowing smaller ownership units to invest. Investing in real estate using blockchain will no longer be difficult. Customers can fully invest in crypto assets through debt or equity the units or tokens will be broken down to have the ability to pay the right investor. Therefore investment opportunities for those with limited financial resources and the top benefits of real estate tokenization.
2.2. Real estate tokenization – High liquidity
Due to the transactional flexibility factor pro-rata ownership of crypto real estate creates many revenue-generating opportunities for stakeholders. Real estate tokenization makes it easy to evaluate before during or after the transaction. In addition the process of using real estate tokens will shorten the processes. Thereby increasing the transaction frequency which means more operating fees.
2.3. Real estate tokenization – Clear transparency
Buying and selling real estate in the traditional way makes it difficult for people to give trust and credibility. But with completely different blockchain technology. Method helps you to record all transactions without paperwork while still ensuring publicity and transparency. Based on the data, transaction history the price and current value of the encrypted asset are analyzed right before making a new transaction.
2.4. Real estate tokenization – Raise new capital
The benefits of real estate encryption also help increase new development capital especially for real estate development projects in the private market. However the tokenization of commercial real estate creates new sources of capital for the development project.
Just reduce the amount into the investment process a larger number of investors can participate. Therefore the provision of capital is very necessary to finance the projects. Cryptography is now helping people raise capital through debt and equity instead of using traditional financing.
3. Is Token Real Estate a scam?
Token real estate can be said to be a fairly new market this way of raising capital takes more time to test and needs a few pilots to evaluate the efficiency and market demand. To answer correctly whether Token real estate is a scam or not it is necessary to understand the following criteria:
Firstly : The legal framework is required to ensure the safety of this type of transactions in accordance with regulations and law.
Second : The technology platform needs to be safe the security factor must ensure the stock market or the bank.
Third : Criteria for products should be clearly defined in terms of legality investor brand, commitments and accompanying conditions.
Fourth : Finally it takes time to change the investment habits of customers. Instead of a single-owner product, it is now possible to have multiple people owning an investment over a pre-determined term.
Based on the above criteria, investors participating in the market face many risks. Need to equip themselves with investment knowledge technology knowledge.. At this time investors will avoid maximum risks and fraud. Money in your hand should decide to invest or not and how to invest is up to each person.
4. Token real estate for project investors
Real Estate Token for project investors in order to remove obstacles to legal procedures – Access to capital from the community. The project investor needs a large capital to purchase tax build and start the construction of facilities buildings urban areas etc.
In order to access good capital preferential interest rates. It takes a lot of time and preparation so it will take a long time until the project is offered for sale to customers. The BDS Invest platform will allow project owners to list real estate through the appraisal process on the system. To attract investment capital from the community at a suitable interest rate without facing geographical obstacles and investment procedures.
In addition the BDS Invest platform also supports investors to wholesale products through the platform by using real estate tokens as a trading tool. This will help develop a variety of investment sources for the project as well as reduce a lot of time on procedures, the owner of the project only focuses on purchasing, building and offering customers to recover capital. fastest investment.
Your real estate risk tolerance will be your path as a project manager or investor. You should arm your experience with blockchain and cryptocurrencies before investing. Hopefully, the above sharing will help you understand what real estate tokenization is and whether to invest or not!
What is real estate valuation? What is the appraisal fee?
When deciding to buy and sell real estate , or apartments or in any other type of real estate everyone will wonder what price is appropriate. If the valuation is not appropriate. It will lead to many unpredictable consequences.
What is real estate valuation?
Before learning about real estate valuation what is it? We will learn about the value of land use rights and the meaning of land prices.
The 2013 Land Law defines the land price along with the value of land use rights as follows:
Land price is considered as the value of land use rights specified in a unit area.
The value of land use rights is understood in the sense that it is the monetary value of land use rights for a specific area of land in a specified time.
It can be understood simply: The value of land use rights and land price will be determined for a unit area of land belonging to the identified housing type.
From the land price: We are allowed to determine the necessary amount that the land user needs to pay to the state in the cases prescribed by law as follows.
Benefits of real estate valuation
Some of the benefits of real estate valuation are as follows:
Valuation of real estate in general is a necessary activity to help parties participating in transactions in the real estate market know the exact price of the real estate that you will transact. The parties involved in the transaction here can be understood as buyers sellers investors brokers banks appraisal organizations.
Housing valuation is also considered as one of the consulting activities a form of determining the value of a land lot. Valuation of real estate by individual owners is not statutory.
The sequence of real estate valuation is quite diverse chosen by the owner of that property to decide. If the prices set by the owner are in line with the market they will be accepted by the market. If this price is not suitable it needs to be adjusted to match the market at a certain time.
In addition you can also simply understand that this valuation is an estimate of the value of land and property converted in monetary form for the purpose of land use that has been determined in a specific time.
Land valuation should only be considered as an estimate of value and cannot accurately calculate the exact details of the valuation of other common properties. Because land is a special asset land prices are affected by many factors in terms of location economy space time psychology legal social etc.
How to value real estate?
In order to self-assess real estate, we need to rely on many different factors. To date, there are a number of effective land valuation methods as follows:
When valuing real estate, the first factor you must consider is the location. You need to confirm exactly what area your real estate is located in? The house is located in which district, on the main road, on the small road or in the side alley, which main alley?
From determining the location, you will have a basis for pricing: If the house is located in a large frontage, the business value will be higher, so the selling price will be higher than the products in the alley or in the street. locations that are not really convenient to connect.
Real estate valuation based on price list
Once you have determined the location of the real estate, you should take a moment to learn and refer to the state valuation method based on the latest land price in the area issued by the competent state agency. onion.
This method of real estate valuation is done according to the principle of applying the current house price calculation, which is 3-4 times higher than the land price list that the State regulates and promulgates in 2015 (this land price list will be adjusted in the future). adjusted every 5 years)
According to real estate experts, the estimated coefficient of 3.8 – 4.5 is the acceptable average difference of real estate products. In fact, most successful real estate transactions in the market have accepted this price gap.
