Blockchain technology is completely revamping the real estate investing scene, as people of all classes will no longer claim not having access to putting money into projects at home and abroad. Blockchain is already transforming many other aspects of the world, as it’s already established a strong presence in banking, legal services, healthcare, education, video streaming, and is now getting into real estate. Whether you’re looking at investing in Calgary real estate or something else, here are some of the major benefits of this new technology.
One of the greatest ways to implement blockchain technology in real estate is with smart contracts. There are several advantages to using them because they are secure, transparent and have immutability. With every single transaction, there is a record on the ledger which can then be viewed by the public, making fraudulent activity nearly impossible with smart contracts.
In the past, having the most lucrative hard assets meant that investors had to be wealthy with the ability to wait a number of years to liquidize. Now with tokenization, investors can split their assets into various tokens which are kept in the blockchain with cryptocurrency. This allows people in different tax brackets and geography locations to invest in certain real estate projects and sell their shares or fraction of shares on the open market when they want to. Now, landlords managing homes can sell portions of their properties they own to the masses.
Cost Saving and Efficiency
Transactions using cryptocurrency are very secure. Having a validation process such as this creates a foundation of trust using blockchains. In the long run, this method can save a lot of money thanks to being able to cut out the middleman as well as any extra fees.
When it comes to investing in real estate, the option has been primarily for people who are already financially abundant. Thanks to the use of blockchains, people with average salaries are now able to afford to make investments of their own by getting rid of the middle man and being able to do everything themselves directly. Having more investors is great for everyone involved, as lower salaried people can take part in investing in big projects just as easily as those who are wealthy and established.
Transactions with real estate are famous for taking a very long time to process, but thanks to blockchains and cryptocurrency, you can invest in just a matter of seconds. According to Medium.com, a recent survey found that well over half of Chinese investors spend more than a year finding their ideal US investment property. Taking that much time to get someone on board and in motion has been the cause of many missed opportunities in the past, which is why the use of blockchains has completely revolutionized this industry.