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What's next: You'll be able to buy properties without dollars in hand - La Nacion Propiedades
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Lo que viene: se podrá comprar propiedades sin los dólares en la mano
Los especialistas en tecnología aseguran que la tokenización Inmobiliaria es una transformación silenciosa que irrumpirá en el mercado de un día para el otro
www.lanacion.com.ar
July 28, 2024
Technology specialists say that real estate tokenization is a silent transformation that will break into the market overnight
Carla Quiroga
Real estate tokenization will disrupt the real estate market overnight
In the vast universe of real estate , the emergence of real estate tokenization signals a silent, but profound and unstoppable transformation . What exactly is tokenization and how is it changing the way in which different players in the real estate market interact, from project financing to marketing? These are some of the answers given by Rodolfo Vigliano, CEO and Co-founder of Pala Blockchain , the company specialized in technological solutions based on blockchain, about a technology still unknown to the world of bricks and mortar .
Rodolfo Vigliano, CEO and Co-founder of Pala Blockchain
What is tokenization?
Tokenization, a blockchain-based process, allows assets to be divided into smaller parts represented by digital tokens . For tokenization to exist, a token must exist. The fundamental fact to understand this process is that blockchain allows assets to exist digitally in a new layer of the Internet without the need for a third party to keep them; that function is handled by the network itself. The example we all know is money: it is physical and becomes digital when we keep it in a bank (a third party). However, no one thinks of going with a pendrive to withdraw money from a bank account, since the money must “become physical” to withdraw it, the paper acts as a validator or “third party”. With blockchain, that custody is not necessary since money can exist digitally .How can it be applied to the real estate market?
Being able to divide something into smaller portions generates many advantages in any industry , but especially in one like real estate , where the amounts involved are considerably high. And, if after dividing it, blockchain technology allows that fractioned asset to exist digitally without depending on someone to validate it, it could be freely sold as many times as the rules of the free market allow .
Does this mean that you can buy a property without having the full value of what the property costs?
Yes, because it can be leveraged . So is it easier to find someone who has $87,000*, or 87 people who each have $1,000? What if we break it down even further? How many people could we find willing to pay $50 a month to partially buy a property or invest in real estate? This could allow a real estate developer to have a broader universe of potential buyers . All of this brings us to 3 key concepts: liquidity, acceleration and scale . Blockchain and tokenization are meant to bring dynamism to the real estate market , a paradigm shift that will democratize access to housing.
What about the legal framework?
Today, the regulatory framework allows 3 tokenization models : cost trusts, financial trusts and corporations. Tokenization does not impact real rights , since well-designed tokens are a blockchain folder of documentation that exists in the real world. However, it is key to talk about “quality tokens”, defined as those that comply with the law, consider the legal framework and protect the consumer who acquires it, either by complying with the current CNV regulations or by going to a cost trust tokenization model where a Notary certifies the adherence. Projects that can generate this offer will undoubtedly lead the transformation of the market
You can buy a property without having the full value of what a property costs
But properties are sold for cash today... How will this paradigm shift be achieved?
It is a profound change that goes from how the client is managed and what the regulatory framework is, to how the collection and closing of the projects is carried out. Today, the means of payment in the industry are transfer or cash . Tokenization will bring to the real estate market the implementation of mass consumption means of payment such as credit card, debit card and QR . In addition, in the current context with mortgage loans, the possibilities are wide. A real estate developer, for example, could begin to tokenize properties from the well stage . Upon completion of construction, they could establish an agreement with a financial institution that allows investors to use the previously acquired tokens as part of payment for the advance of the mortgage loan. This synergy not only speeds up the financing process, but also the closing of projects, opening a range of opportunities for both buyers and developers.What is the process of purchasing in the pit?
The person acquires a percentage of a certain functional unit. Then, when the project is finished , the unit goes on sale and the buyer of 100% of the unit buys 100% of the tokens and a deed of ownership is generated .What happens if the apartment is sold for less than originally planned?
No target sale value is defined. Only tokens are sold at market price and the functional unit is also traded at market price.What if the apartment doesn't sell?
People will be able to sell their tokens whenever they want , either by individual sale or by sale of the property. The sale times are defined by the market.Who decides at what price, when, and to whom the apartment is sold?
The agent to whom each buyer gives his consent to carry out the sale. This may be the developer himself or an assigned auctioneer.
Is it necessary to have a bank account in Argentina?
Yes, in pesos. Or a wallet with crypto .
Do you have to sign a purchase agreement?
No. At the time of purchase, the platform is responsible for certifying the transfer. The platform itself changes the assignment of ownership of the tokens .
In order to buy a property with tokens it is necessary to have a savings account in pesos in Argentina or a wallet with crypto
What happens if a token holder dies, disappears, gets divorced, is seized, convicted of a crime, or declared bankrupt?
Once acquired, the Token enters the trust flow process and , in the event of any of these eventualities , it continues its operational life until the sale is made . While the securities are deposited in the account assigned by its owner. If this were seized or cancelled, the securities remain in the custody of the Trust Administrator, just as happens today with any trust .
If you had to summarize the advantages of real estate tokenization, how would you do it?
It represents much more than a technical breakthrough ; it opens up the real estate market by lowering barriers to entry, democratises property ownership and promotes unprecedented financial inclusion – all you need is a mobile phone with internet access . With promises of greater agility, transparency and accessibility, we are on the threshold of a new era for real estate . As we enter into this silent transformation, the real challenge will be our ability to adapt and evolve , ensuring a future where the dream of home ownership is attainable for all .
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