UPRETS Research | How Digital Securities Ease the Way People Invest in Real Estate Properties?
The real estate market offers a range of investment opportunities. But while investors have a lot of ways to participate, the amount required for investment usually keep an average investor away, especially when it comes to investing in prestigious properties. However, that’s changing with digital securities. Those who want to invest in real estate can now easily do it with the help of digital securities, even if they have a small amount of money to invest. It is because digital securities allow them to make a fractional investment.
Not only investors but property owners or sellers are also benefitting from digital securities as they can sell even a small piece of property to make money. Breaking investments up into smaller sizes or fractions makes it easier to sell and buy in the secondary market. This helps prevent investors from getting stuck, as the process of sale and purchase keeps on moving.
Here is how the real estate property investors would benefit through digital securities:
Buy/ Sell A Small Portion of the Property with Ease
Without digital securities, people can’t sell a small share of the property through digitalized method and trade on secondary market, as they will be required to sell the whole asset in a lump sum. There are no accessible tools for homeowners to make income by selling a portion of property other than digital securities. With these, one can generate a considerable amount of money by selling a fraction of the property as a fractional investment can be made. For instance, if the property’s worth is USD2,000,000, with digital securities, you can divide the property into 200 shares where the value of each share would be 100 dollars. The owner can sell five shares to make $10,000 dollars that can be used to renovate the home. Digitalization would allow the homeowners to sell the property’s share by listing it in the secondary markets. The small portion of the property would be converted into digital securities that can be sold in the global market.
Gain Access to the Global Market
The real estate market has a lot of regulations. When geography is considered, it becomes challenging for the owner to sell the property. It takes years for them to sell or even buy the property. The liquidity would be blocked. Digital securities would change the dynamics of selling property in the real estate market. It opens many possibilities for you to sell the property in the form of digital securities in the global market, which is not confined to the asset’s geographical location. Property owners can use digital securities to make the selling or buying process hassle-free. For instance, — the investors from the USA that are interested in buying the property in Mauritius can buy the property’s digital securities. They can also invest in multiple real estate properties globally.
Get Promising Liquidity Instantly
When you want to buy a property or invest in any real estate asset, you would need high liquidity. The investment would be blocked for a certain period. It becomes difficult for you to get wealth. If you have a huge property and are not getting the right buyers for it, you need to wait for a long time. But with the help of digital securities, you can free up the liquidity by selling a fractional share of the property. It gives a huge benefit to those property owners who need quick access to the liquidity.
No Third-party Intermediaries
When you want to invest or sell a property, you must pay a hefty amount of money to the broker. It is now weeded out using digital securities. There is no need for a bunch of middlemen to finish the real estate deal. Many people are involved in buying or selling a property, and there is a lot of money incurred. When you use the blockchain technology in real estate, the transaction can be carried out peer-to-peer. The smart contracts backed by the blockchain will remove brokers to sell or buy real estate property. No investor has to pay the fee to the broker. You can also enlist the property that you want to sell on the international platform if it supports digital securities.
Conclusion
The rise of digital securities is making a big difference in the way investments are made in the real estate. Traditionally, investors had to put in a huge amount in the initial offering and, in most cases, needed a personal connection to the deal. Now, the scenario has changed. Platforms like UPRETS, with the collaboration of digital securities exchanges like MERJ, allow investors to browse, sell, and buy property shares at more attainable and much lower amounts. The digital securities marketplace is entering a new phase of maturation, and real estate is going to gain a lot from it. By creating more affordable, accessible offerings, digital securities are unleashing the full potential of the real estate market.
About UPRETS:
UPRETS is a platform focused on simplifying investment in real estate by advising on and digitalizing assets and securities.
We are dedicated to providing a convenient, legally compliant and advanced real estate digital securitization platform for property developers, asset owners and investors globally.
By utilizing our UPRETS platform, real estate developers and assets owners can create digital securities for their properties, providing investors with various low-barrier, secure and convenient forms of investments.
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.
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