For an industry with a primary emphasis on global collaboration and a significant reliance on manual processes, the potential of blockchain to simplify and automate these relationships is immense. Platforms like https://bitcoin-revolution.software use fundamental and technical analysis to provide you with the best trading calls. For example, using blockchain could streamline the escrow process in real time.
It would effectively eradicate many timing-sensitive issues that always seem to pop up during settlement (or even escrow) — lack of disclosure of physical property inspections, surveyors not releasing their reports in time for closings, title companies not being able to produce title commitments within 10 days from the receipt of all necessary documents from the lender etc.
As more transactions are sent to the blockchain, more real estate professionals would benefit from using this technology for their respective transactions. The below mentioned will explore some possible changes that could be brought about by the Bitcoin blockchain – in property management and real estate.
Liquidity in Real Estate:
One of the most significant issues in real estate today is the absence of liquidity in real estate. Of course, it’s always an issue when someone wants to buy or sell a property, but there are hardly any takers. It could be because either no one has the cash lying around or no one is interested.
With blockchain, you can buy or sell a property virtually any time with minimal effort (although it might require some work on your part.) Sellers might even accept cryptocurrency as cold hard currency when trying to offload their property — significantly if they can hedge against volatility using their holdings (house, bitcoin, gold etc.).
Fractional Ownership:
Blockchain allows fractional ownership and lowers the barriers to real estate investing. Just as bitcoin allows for ownership of fractions of a property, it will also allow a simplified process to own property such as smaller units in apartment complexes.
Allowing individuals or entities to own tiny amounts of real estate through fractional ownership will provide flexibility to those that may not be able to buy or sell real estate on the open markets. In addition, this means that the real estate market would eventually stabilize as there would only be a small amount outstanding at any time. Finally, it will allow individuals to capitalize on the real estate market in times of uncertainty by holding property not only as an asset but also as a hedge against price volatility.
These are some exciting changes that the introduction of blockchain technology could bring about. However, at this point, it would seem more beneficial for mortgage professionals and realtors to review and experiment with the possibility. By implementing blockchain into all transactions involving mortgage payments and title transfers, we will eventually eliminate many of these time-sensitive delays that plague our industry today.
Decentralization in Real Estate:
Real estate has a long history of centralization. Laws, restrictions, and rules apply to placing leases in real estate worldwide. It may have been necessary when the land was scarce and the only place to live was where you were born or raised. But with increasing global rights to own property and technological advancements, this type of governance is no longer necessary.
The future of real estate would be one in which owners have fewer limitations on who they rent or sell their property to (if any restrictions exist). In addition, those involved in sales and purchases would no longer need a third-party contract or a guarantor for their transactions.
Tokenization and Virtual Ownership:
The future of real estate would also be one in which property rights are tied to tokens (essentially, a digital representation of the property or real estate.) These tokens would be issued by the government or other governing bodies and can then be traded on exchanges.
There would be no need for physical properties, only digitized ones that live on a blockchain. Ownership of these tokens can then be pooled together and sold as shares in a trust (similar to investing in the stock market today.)
The limitations of the current way we govern land ownership could lead to a future where property rights are tied to shares in trusts and traded on exchanges rather than tied to physical properties. It is similar to what we see in the stock market today.
It is the future of real estate, where blockchain has become an essential part of real estate transactions, making them more accessible and efficient. With its ease of use, it will also go on to make document storage easier and provide avenues for both buyers and sellers to get into or out of specific asset classes.
Today, we have a lot of different avenues to buy and sell real estate. Some of the more traditional channels can be more difficult to use, while others, like tokenized real estate, provide an easier way to get into and out of this asset class. Blockchain would be the perfect technology to facilitate these transactions in the future — with time; it will also allow for new services such as investment portfolios that provide diversification between tokens.
