facebookHello David, what do you think of Real Estate Tokenization Using Blockchain? Is there a future to it? - Seedly

HB Tan

20 Jan 2021

βˆ™

SeedlyAMA

Hello David, what do you think of Real Estate Tokenization Using Blockchain? Is there a future to it?

AMA Mortgage Master

Discussion (1)

What are your thoughts?

Learn how to style your text

I believe Real Estate Tokenization is an investment vehicle in the same vein as a unit trust or a REIT.

It is no doubt innovative and allows people to invest in real estate across borders. As it is not yet regulated, investment opportunities are given to a global audience throughout each segment of the net-worth food chain.

Moreover, while there is a need for mandates and trustees to be created to manage REITs/unit trusts, there may be no need for that with Real Estate Tokenization. The use of blockchain technology could lead to lower costs, and that would allow more returns to flow back to the customer.

Ultimately, an investment is an investment is an investment. There will always be risks involved. At the end of the day, whether blockchain is used or not, this investment is still linked to the brick and mortar of the immovable asset, the rental yield or revenue yield (whether its a resort you are investing in or a solar power REIT).

Be ready for anything. Property prices may drop, the rental market may crash. We saw how COVID-19 caused resorts to take a significant hit to their business. Sustainable electricity may become super cheap, causing solar electricity returns to become insignificant.

Since we do not know the future, do not invest more than you can lose =)

Write your thoughts