Real Estate Tokenization is a mode of providing fractional ownership of a property to an investor through tokenization. In the stage of technology development, NFT forms a trend because it is applied to encrypt many Real assets. Let’s learn five benefits of tokenizing real estate with Moonka.

1. Increase liquidity

A real estate is always a form of investment with liquidity and added value. However, investors may experience difficulties in the exchange or transaction process, causing them to miss out on land fevers. Therefore, the field of real estate investment often causes some difficulties for new real estate agents.

However, through real estate tokenization, investors can participate easily, assets are divided, thus increasing the liquidity of the token. As a result, Real Estate can be more than simply buying a house, and emerge as one of the top revenue-generating industries.

2. Types of customers can buy token

Real estate investment is often considered a game for the rich and the elite. However, real estate tokenization changes this mindset and expands the investor pool. Anyone with sufficient capital and an internet connection can sell, buy or hold real estate assets from anywhere in the world. Since the tokens (or assets) are forked, you don’t even need to sell the entire token.

Blockchain businesses like Moonka aim to provide minimalist investment solutions suitable for a wide range of customers. Now, owning a piece of real estate is just a few clicks away and many new customers and investors can also join.
From contract terms and transaction details to your interest details and interest due dates. Every data is programmed into a secure, digital token. Therefore, there is complete transparency between the investor and the seller. Plus, with fewer middlemen and less administrative work, the whole home-buying process becomes less expensive.

3. Transactions are transparent and less expensive

From contract terms and transaction details to your interest details and interest due dates. Every data is programmed into a secure, digital token. Therefore, there is complete transparency between the investor and the seller. Plus, with fewer middlemen and less administrative work, the whole home-buying process becomes less expensive.

4. Immutable proof of ownership

The real estate industry regularly sees fierce legal battles over ownership and rights. These can not only be financially draining but can also impact the brand value. Tokenization erases the possible cause of dubiety. Encryption is the solution to a possible cause of ambiguity. The data stored in the blockchain ledger cannot tamper with.

Besides, NFT is a non-fungible, non-copyable type of token. Each real estate NFT is identified by a wallet address. NFT will protect copyright and help investors better manage assets.

5. Asset Management

Delayed monthly rent payments or lease renewals often pose a challenge for both tenants and property owners. Blockchain-based smart contracts or tokens can streamline this process. Through smart contracts, buyers and sellers set out agreements and automate the execution process.

For example, a buyer agrees to participate in the NFT purchase of a property. The smart contract will appear in the transaction history and connect to the buyer’s wallet address and the seller’s asset contract. After the buyer confirms, the real estate NFT is transferred to the buyer’s wallet. At the same time, the NFT equivalent is transferred to the merchant’s smart contract. This operation is automatic, transparent, and fast.

Thank you for reading Five benefits of real estate tokenization. Wishing Moonka investors a successful investment!

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