It’s 2022 but trouble in the housing market doesn’t seem to be coming to an end any time soon. Whilst you may think the global Covid-19 pandemic has put a damper on the economy as a whole, the housing market has defied the odds with values rising 20% since the start of the pandemic in 2020.
Moreover, inflation has hit an all-time high in 30 years with an increase in energy bills, taxes and interest rates to further fuel the ownership dilemma. It is no surprise that first-time homeowners are struggling to find any affordable housing or opportunity to invest in the property market.
Fortunately, the real estate industry has branched out into the blockchain revolution, creating fairer opportunities for people to participate in the market by reducing the barriers to entry. Here’s how:
Tokenisation – Fractional Ownership
Through the use of blockchain technology, real estate property can be tokenised. This means that a company can leverage blockchain technology to create tokens on the blockchain then assign them to properties that are either in existence or under construction.
These tokens can then be sold as either a form of ownership of collateralised debt or a share of the deed equal to the equity interest in a property. In simpler terms, tokenisation in real estate represents fractional ownership in the market.
Fortunately, platforms such as Bricktrade, the blockchain-based digital marketplace, where property can be traded between buyers and sellers are on a mission to help people not only become investors but help in aiding the global housing crisis too. On its way to becoming FCA-regulated, Bricktrade is the first real estate platform in the UK to facilitate the tokenisation of real estate assets and open them up to the possibility of funding these investments through both fiat and cryptocurrency.
As a property investor, you can rest assured that Bricktrade is setting itself apart with not only its unique focus on accessibility but also its brilliant approach to making the investing process as smooth as possible for all investors.
By facilitating tokenisation, Bricktrade is able to open doors for investors to:
A diversified portfolio
Whether you are in Scotland or Japan, cross-country barriers are not of concern when it comes to tokenisation. As an investor on Bricktrade’s platform, you will be able to participate in investment opportunities across the UK’s bustling property market worth £8.2 trillion as well as around the globe!
The beauty of blockchain is the immutability of this distributed ledger technology. This means that all data on the blockchain is shared with all viewers and users of the blockchain. Furthermore, this implies that every transaction is validated and sent by the network that the marketplace is built on – making data transparent and immutable. Therefore, the argument of ownership will never be of concern through tokenisation because the technology mitigates such issues.
As a result of network participants being able to access holdings and transactions of public addresses, security and transparency are a given.
Bricktrade’s tokens are asset-backed. This means that every single token on the platform is assigned to a property project or development, which reduces the risks around your invested capital. This emphasises the vital value of safety that Bricktrade holds close to its heart.
Investing in property is more than just the hassle of affording a mortgage and property; it is also about the legal and intermediary fees that come along with the process.
Through Bricktrade, property investors will be able to directly invest in a property on the platform for as little as £500 without the need of a solicitor or financial institutions. Investors will be allowed to buy and sell real-estate tokens without incurring the typical closing costs on property, which in turn, reduced transaction costs significantly.
Compliance is a priority
Granted, Bricktrade carries out its due diligence on projects that are on board and ensures all compliance-related matters are fulfilled. To not only meet but exceed their compliance expectations, Bricktrade is proud to be partnered with Crowd for Angels, an FCA-approved platform.
This partnership is significant to the growth of Bricktrade as Crowd For Angels is a platform focused on innovation and both Bricktrade and Crowd For Angels feel strongly about bringing innovation and appealing investment opportunities to the real estate market.
Evidently, Bricktrade is a pioneer in the evolution of the real estate industry in the blockchain revolution. If you would like to find out more information about Bricktrade, you can visit their website here: https://bricktrade.co.uk