UPRETS INSIGHTS | Blockchain for Real Estate — Reasons to Digitalize Your Property!
The real estate industry has become complicated. Be it you want to analyze the property or want to invest in a venture, you have to keep a close watch on umpteen things such as legal complications, stakeholder rules, transactional expenses, lack of transparency, and change in the prices & additional fees. It would make this market intimidating for many in this 21st century. If you would like to play your cards safe, many experts are suggesting using blockchain technology in real estate. The blockchain and digitalization are going hand in hand in this sector. The real estate digitalization is the need of hour to streamline the real estate market.
The best part of using blockchain technology in real estate is that it makes the documentation process a piece of cake and promotes transparency. It is easy to trace, easy to access, boosts the security and reduces the cost involved in the whole real estate transaction process.
Digitalization is a stringent process to transfer a part of ownership interest in an article with the help of blockchain-based digital securities. The person who has the digital security, i.e., the private key, would own the piece of asset related to the digital security. Real estate digitalization is a process to show the ownership interest on a piece of real estate property using the digital securities.
Complete Control over Assets!
You can issue, manage, and exchange the digital securities through the blockchain-based network. The blockchain would enable you to enjoy the benefits of a distributed ledger. When digitalization is implemented at full fledge in the real estate, it helps the owners who own property to have complete control over their assets. For instance, John owns a property that is worth USD 20 million, where Michael wants to invest the real estate property by paying USD 1000, and then John would divide the property in the form of digital securities or assets. These digital securities are sold to institutional or individual investors. The returns that you get through the investment are managed through smart contracts. The earnings from the investment would be sent to the digital securities holders.
Here are a few reasons to use digitalization in real estate property!
Easy to Manage Assets
With the help of smart contracts and self-regulated logic, it becomes a piece of cake for the investors to manage the assets with ease using the real estate digitalization. You can buy a share in the asset by purchasing a digital security through this platform. The same procedure will go if you want to sell the digital securities. There is absolutely no intermediary involved in the transaction between the buyer and the seller. The process goes smoothly without any hindrances. No paperwork would cause a delay in the process of buying or selling an asset. The purchasing and selling would be made pretty easy using voting. In case if several owners would receive an offer to buy a property, they must vote whether or not to accept the offer. No matter whatsoever, you want to do with the property you have purchased, but the process becomes streamlined. There is no involvement of legal complications. It is easy to create digital securities by aligning to various regulations such as the area where the property is located, type of asset, and history of the buyer.
Proof of Ownership
The immutability of blockchain is what makes is a smart option to use in the real estate sector. The history of transactions that are performed on an asset or property would be stored in the blockchain ledger. This history will help the stakeholder and investors to prove that they are the owners of the property without any kind of doubt. It is the structure that keeps the chances of getting prone to fraud at bay. The excellent thing is that no other user will be able to sell the digital securities or blockchain of other investors without giving the right private key. If the asset owner tries to sell the same digital security to multiple users or sell the token multiple times, the blockchain will have the history of the ownership, which makes it impossible for the investors to fall prey to the fraud. Investors can check the transaction history of the asset before investing.
Reduce the Entry Obstacles
There was a time where investment in the real estate property was only for the affluent people. However, with the digitalization concept in the real estate sector, it is opening up many opportunities for the real estate investors, i.e., even the ordinary ones, to invest in the real estate assets. You can now invest USD 1000 to 2000 dollars in a big digital security funded project since it would not pose any harm to your investment. The whole system would be depended on the execution of smart contracts. It becomes easier for ordinary people to become a fractional owner of a property. It is the best option for the people who want to invest thousands of dollars in an authentic property
Promote Market Security and Transparency
The best thing that is offered by the digitalization of real estate property is security. The cryptographic encryption would provide high protection to the digital securities that would represent the assets. The person can gain access to the piece of property through the use of a private key. The digital security owner would hold the right to possession. Another best thing about the real estate digitalization is transparency, which is the lacking thing in the real estate market for a long time. The blockchain ledge would have every minuscule detail about the digital securities that you are using for transactions. The condition at which you have exchange the digital securities would be tracked in the ledge and can be seen by all. It becomes easy for the investors to investigate the past dealings on the property.
They can also see whether the price demanded by the seller for the property is realistic or not. There will be no room for you to overpay or underpay.
Easy to Transfer Assets Legally through Blockchain
As long as the private key for the property is with you, then definitely, you would be the legal owner of the property. This blockchain platform allows you to transfer the ownership rights to the people to whom you are selling the piece of property legally without any issues.
These are a few reasons to digitalize the property. Digitalization will reduce the transitional issues to a great extent and wipe off all the woes that are faced by the realtors currently embracing the traditional method of transaction.
About UPRETS:
UPRETS is a platform focused on simplifying investment in real estate.
We are dedicated to providing a convenient, compliant and advanced real estate digital securitization platform for property developers, asset owners and investors globally.
By utilizing UPRETS platform, real estate developers and assets owners can create digital securities for their properties, allowing investors to benefit from the rental dividends and capital appreciation of the properties in major global cities.
Backed by a publicly listed real estate conglomerate (NYSE:XIN) and our award-winning, patented blockchain technology, Xbolt, we bring a network, experience and luxury assets to the platform.
For more information about UPRETS,
visit www.uprets.com
LinkedIn: linkedin.com/company/uprets2019
Medium：https://medium.com/uprets
Twitter: https://twitter.com/uprets_io
Facebook: fb.me/uprets2019
YouTube: https://www.youtube.com/channel/UC5Te7mLRV5mK64tAfqhj_Pw
