Real estate investment is changing for the better. Because of blockchain technology, more people can now invest in property than ever before.
Let's see how this happened. In the past, only rich people could invest in real estate. You needed a lot of money to buy buildings or land. Then crowdfunding arrived, and it changed everything.
In 2015, Spain passed new laws in order to make crowdfunding easier and safer. New platforms appeared where anyone could invest in real estate with as little as 100 euros. Those platforms had to be approved by Spain's financial watchdog and thus were reliable.
Now there is something newer: property tokenization. That is, changing real estate rights into digital tokens using blockchain. When you buy such tokens, you do not buy the building itself; rather, you buy rights in respect to things like rental income or profits when the property is sold.
Here is why people like tokenization:
- It is clear: everyone can see what is happening.
- It is fast: transactions happen quickly.
- It costs less: fewer people in between means lower prices.
- It is safe: blockchain technology keeps information secure.
Spain recently took a major step. The government gave permission to the first company to officially register investment tokens based on blockchain. This means that investing in real estate through tokens is now perfectly legal.
What does this mean for investors? Soon, people will be able to buy and sell these digital property tokens just like stocks. This is creating new ways for people to invest in real estate, making it easier and more available than ever before.
This is only the beginning. As more companies begin using this technology, we will probably see many new chances for regular people to invest in real estate.
Ready to get started? Ensure you are using approved platforms and always know what rights you are getting when investing in tokenized property.
Need me to advise? Contact me today.
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Helping businesses raise funds, is my job, it’s what I excel at.
I’ve successfully assisted over 300 clients in securing more than $20 million in funding.
