Fractional Ownership – Will we soon all become landowners?
Real estate is considered a relatively safe investment opportunity that can generate passive income for entire generations. For this reason, real estate is generally considered a sensible long-term investment, as in most cases the value increases over time.
NFTs and Fractional Ownership.
NFTs are suitable for representing ownership of physical items or real estate. Homeowners could sell a portion of their property to a large number of retail investors by issuing tokens on the blockchain. Investors could hold these tokens in exchange for rental income, a share of the capital appreciation on the sale, or both.
This fractional ownership trade could occur without intermediaries, making it equally accessible to all. This would open up the world of real estate investing to many more people and create better opportunities for those who need to release equity without borrowing or moving. We are excited to see if and to what extent fractional ownership changes the way we own real estate.
Real estate investments, and all other investments, involve risks that can result in loss of asset value, financial loss, or legal consequences. In this article, we only want to inform you, not give you financial advice. Seek the advice of a licensed real estate or financial professional before making any legal or financial commitments.