RE: IS FUTURE TOKENIZATION OF PROPERTY MARKET something we should all be aware of?
Dear @ulqu3 and @everyone else reading my comment
I've been researching for quite some time about future of STO (security token offerings) and I came several times accross idea of tokenizing property market. And to be honest I don't know what to think about it.
Most of us already understand the difference between "housing market" and "property investment market".
How will tokenization of property market impact both of those markets in most popular places? Like Mumbai?
In my opinion we will witness even more empty appartments, which are being nothing but investment. At the same time prices in prime locations will increase most likely to the point that REGULAR JOE will completely not be able to afford.
I think that inequality in those prime locations and living standards will change immensly.
Yours
Piotr
There will certainly be a transition period. I believe, as other other areas innovate, like transportation and ability to earn, tokenization of real estate will mature. While this is probably far down the road, asset-backed tokens will demonstrate what is possible and begin to open the eyes of the world.
In the coming years, projects like JPMorgan Coin, IBM and Oracle's blockchain investments, and Amazon cloud services, will spur interest. It will be more of a follow the leader type of thing until the generation that grows up with blockchain makes its use comfortable.
I doubt blockchain will be used for anything like twitter (crypto-kitties) for much of the population over the first five years that every phone comes standard with a blockchain app. But then, quickly we will see a global (not nation or great firewalls) shift. Making things real creates real change.
Hey @crypto.piotr,
I came across this platform sometime back in Oct or Nov 2017 I guess. I am not really sure though. Brickblock is conducting their pre ICO during those days. I was excited about the idea after going through the whitepaper of this project. As far as I remember I will put the information here.
This project works like an apartment. In Apartment there will be so many flats. Each flat is owned by a particular individual. And they have their own rights. Apartments have different rules compared to individual houses. In the same way Brickblock will find a property which is for sale. That will be kept on sale for token holders. If the token holders are interested they can invest like 1000 dollars or what ever they desire in the form of BBK tokens. It might be of any amount. This will go on till the property acquires full amount. So technically here the property will have multiple owners depending on their investment. So if they want to rent out that property they will be getting rent as per agreement and for the individual part.
Coming to the legal implications BBK has separate legal cell which will handle these things initially before auction and they will keep the property or land for sale.
I hope this clears the confusion.
What I would like to see is the investing into the development of housing projects where rather than just buy and sell, the tokens own a stake of the property itself so that investors carry liability. If the development is not done well or not demanded, the investors lose out. However, this can also be used to build all kinds of developments and get projects up and running faster than currently.
I agree. this would force innovation, raise the standard of housing and raise competition. Which in the end, would benefit the person occupying the house.
Dear @tarazkp and @crypto.piotr
Starting from this point, it would also be very beneficial for investors. since they would also have a tangible asset under their investment.
This is what crypto needs to start doing, buying back into the real world with crypto, not cash.
Ok.Like @crypto.piotr, I am also a bit ambivalent with the whole project because:
Pros:
But, the downsides are:
Why not just do a rent to own program for now just to see how things are in real time?
Dear @tarazkp
Thank you for sharing your thoughts on this particular topic. Seriously appreciate it.
ps.
I NEED YOUR HELP :) Nothing serious really. But I still hope you can spare few minutes of your time :)
I found out about great contest where winning community can receive a year's delegation worth of 20k SP!
I realized that receiving such a delegation could help greatly to grow our community. After all I'm upvoting each valuable comment. On top of that, I'm doing my best to promote quality content published by other authors and again: I like to reward those who engage with those authors.
I know that it's probably a long shot and most likely our community won't stand a chance in this contest. But I love being the underdog! Let's give them a fair fight :)
Which brings me to my next question, I was wondering if I could count on your support? At this stage I would only need to ask you to comment this post and suggest myself for the contest. Perhaps you could also make another suggestion: @ help.venezuela (this is run by my dear friend @ achim03).
https://steemit.com/dpoll/@theycallmedan/20k-steem-delegation-poll
This is just a first round attempt. I hope we can make it to second round hahha :) Naturally I would appreciate if you could ask your friends to help with our little "quest" :)
Let me know what you think? Perhaps you can also share some advises and hopefully we can "do little bit of brainstorming". Would be awesome to win :)
Yours
Piotr
Seems this page takes too long to load for me, and it doesn't show the comments.
Hi Piotr Sir,
The problems pestering the investors during the purchase of either a plot of land/independent house/an apartment are many. If they're not aware of the cheating practices involved in the buying and selling of properties, they will be losing their hard-earned money just like that.
I would like to tell you one mind-blowing case that shook our state top to bottom and the purchasers of a prime property in T.Nagar as well. The strange thing that happened and that needs special mention here is that the very same property has been sold to five different parties and queerest thing worth mentioning here is that all of the five parties involved in the purchase of the same were given five original documents for that very same property!
I checked with the net to get more details, but couldn't get it. Instead I am posting another link which explains about the property fraud extensively.
[https://www.google.co.in/amp/s/m.timesofindia.com/city/chennai/south-chennai-is-hub-of-property-fraud-in-city/amp_articleshow/65919840.cms]
If the STO is adopted with full force, then we can put a full stop to all these sorts of malpractices once for all!
I just read your amazing comment @marvyinnovation
Thanks for sharing your knowledge and for your effort.
yours
Piotr
Notwithstanding the speculative wave that is bound to occur if tokenisation of real estate really takes off, the pros outweigh the cons when you consider the immense benefits offered by a transparent process and the elimination of cumbersome paper work and agent fees.
Posted using Partiko Android
Dear @investprosper
Thank you for sharing your thoughts on this particular topic. Seriously appreciate it.
ps.
I NEED YOUR HELP :) Nothing serious really. But I still hope you can spare few minutes of your time :)
I found out about great contest where winning community can receive a year's delegation worth of 20k SP!
I realized that receiving such a delegation could help greatly to grow our community. After all I'm upvoting each valuable comment. On top of that, I'm doing my best to promote quality content published by other authors and again: I like to reward those who engage with those authors.
I know that it's probably a long shot and most likely our community won't stand a chance in this contest. But I love being the underdog! Let's give them a fair fight :)
Which brings me to my next question, I was wondering if I could count on your support? At this stage I would only need to ask you to comment this post and suggest myself for the contest. Perhaps you could also make another suggestion: @ help.venezuela (this is run by my dear friend @ achim03).
https://steemit.com/dpoll/@theycallmedan/20k-steem-delegation-poll
This is just a first round attempt. I hope we can make it to second round hahha :) Naturally I would appreciate if you could ask your friends to help with our little "quest" :)
Let me know what you think? Perhaps you can also share some advises and hopefully we can "do little bit of brainstorming". Would be awesome to win :)
Yours
Piotr
Absolutely @investprosper. There is no second thought about it.
Posted using Partiko Android
Great comment @crypto.piotr. The biggest problem I can see if it comes to tokenization of property market and STOs is that this "revolution" is charged with very serious restrictions. We all love crypto because it is something independent of the whole system, banks and governments. The decentralisation is real and everyone can feel like an important part of the blockchain.
If it comes to securities, I am afraid that this "spirit" of crypto is lost. We need to fit into all regulations, blacklist users from certain countries due to the law and collect data about them through KYC. I know some of these changes are necessary, but I have the feeling that we are further and further from the vision of Satoshi Nakamoto.
The article assumes that local laws and regulations will be bypassed. I don't see that happening because of things like laws against tax evasion and the necessity to maintain public titles. So, I don't see the speculation developing as a result of the privatization of ledgers.
Still, there is room for tokens to simplify and publicize now opaque processes and reduce transaction costs. In fact, publicity will reduce money laundering and capital flight. Dictators and their cronies won't be able to purchase foreign properties unnoticed.
One problem I haven't seen addressed is liens like mortgages and legal penalties.
Posted using Partiko Android
Dear friend @crypto.piotr, In that aspect I totally agree with you, and I think so, for the following reason: The world as a whole still does not fully manage tokenization, that is, only a small percentage of citizens in the world are adopting is a form of currency, which would leave without options to a large number of people around the world, who would see how a few investors who have large fortunes in cryptocurrencies are still taking over the planet.
With this I do not underestimate the opportunity that this technology represents for all, and the opportunities it gives you to be decentralized. Being honest, I think it would be some time before a project like this represents investment opportunities for all and that there is equality.
I would also ask: What regulations would there be to recognize a property that I bought in another country if there is a claim? Would there be a physical support (documents) to prove the property?
Forgive me if the questions seem vague and you do not understand much, but it is the doubts that I have.
Pr E-V
I agree with you about it adding to the empty apartment problem. Beijing and Shanghai are full of apartment buildings that many people cannot afford and are also not bringing in money to the owners other than speculative house flipping. If tokenization of real estate occurred, especially with ICOs on real estate, you would likely see a major boom in the contruction industry, but it would likely result in another bubble.
I only owned a house once for a brief time and hated it. I don't really follow anything about real estate and have very superficial knowledge of crypto issues. I think it will be a fight to remove government control from any facet of life, but it can not happen too soon.