Those under the age of 35 who have witnessed the rise of modern technologies like cellphones are more likely to struggle with the desire for rapid pleasure.
As an investment, real estate is about as unappealing as it gets in the eyes of today’s young adults. Purchasing real estate is a time-consuming and antiquated procedure. A generation that is rising into wealth, power, and influence will unconsciously see “modern” real estate investing as outmoded and in need of an upgrade to the digital world.
A new breed of investors and homeowners are on the lookout for a means of acquiring real estate that doesn’t include the high costs, lengthy timelines, and questionable credibility of the traditional methods. NFTs, DeFi, and the broader web3 real estate app development ecosystem may offer the “Easy Buy” button for property that many people are looking for.
The definition of a Real Estate NFT.
A real estate NFT is created when all the necessary ownership documents of a property are minted as an NFT, and then when the property is purchased, ownership is immediately transferred to the buyer without the need for a middleman, resulting in lower costs, faster processing times, and increased security when compared to conventional real estate transactions.
The need for real estate NFTs to be used in the modern real estate market is perfectly outlined by the CEO of Propy, a real estate transaction platform that focuses on property NFTs and uses blockchain to make transactions faster, safer, and more efficient.
They want a “one-click” system that is quick, efficient, and indicative of the era in which they live since they are not accustomed to the expensive and lengthy, drawn-out process of purchasing a home, which relies on old techniques of transacting business and several middlemen. People avoid the home-buying process because it is so unpleasant.”
Many people in the United States, especially millennials, cannot afford to go through the procedure, which is problematic in and of itself. Seventy percent of respondents to a national study shared the view that entering the housing market is more challenging for today’s young adults than it was for their parents’ age. A possible countermeasure would be to use cutting-edge technology to bring the real estate market into the 21st century and therefore drive down prices.
Minting your property as an NFT makes the process of transferring and proving ownership easier and faster. With the recent $650,000 sale of a Tampa property as an NFT, Propy has demonstrated the viability of the strategy. However, Natalia Karayaneva, CEO of Propy, claimed they experienced a few logistical and legal issues:
Developing the genuine NFT for a property
Fitting the NFT into the judicial system of the United States
\sInventing the “know your customer” approach since most art NFT transactions are anonymous
Natalia explained how they were able to circumvent these problems in articles she wrote for Forbes.
After deciding to transfer property ownership from private hands to that of a corporation established in the United States, they formed the NFT. The NFT ownership transfer then gave them legal title to the land.
As the entity had the property title, they didn’t need to record the title again with the county, which according to Natalia, saved a great amount of time and money.
She continued, “Then we designed a protocol that would move an asset from one wallet to another, collect individual names, and conduct basic background checks to guarantee the legitimacy of the exchange.”
Propy has already opened up its application procedure to more folks to begin minting their homes as NFTs. Similarly, Utah developer Dave Wilkes is constructing a home with the express purpose of flipping it as an NFT.
Possibility of Implementing Blockchain Technology
In recent years, blockchain technology has gained traction as the next revolutionary invention set to “Revolutionize” numerous industries, including the previously mentioned Financial Services and the latter Real Estate. Still, what is it that Blockchain actually modifies or enhances?
You’ll have to learn about “Blockchain” technology to get the answer. Blockchain, in its simplest form, is a digital ledger of all financial transactions. Once recorded on the Blockchain, the data can no longer be changed, making it the most reliable method of data verification and storage currently in existence.
Faster, cheaper transactions are available through many cryptographic networks, the most popular of which being Bitcoin, Ethereum, and Solana.
While blockchain technology won’t be able to entirely revolutionize the real estate industry, it will help push it to new heights.
The key ways in which Blockchain will improve the current real estate business are, first, by drastically reducing the time it takes to conduct real estate transactions.
The entire process, from applying for a mortgage to signing the final paperwork, can take up to 16 weeks. There are a lot of people in that deal who will want a piece of the action.
With the help of technologies like real estate NFTs, we could use a smart contract to read and validate all of the documents included in the NFT.
Which, depending on the depth of verification required, might be done in a matter of minutes. This would ultimately remove dozens of middlemen and their costs, making homeownership and investment cheaper.
In addition to lowering entry barriers, increasing participation in the real estate market can be accomplished by exposure to actual markets via digital real estate.
We can also address a prevalent issue in the conventional real estate market by providing investors with greater liquidity. Liquidity pools allow us to provide reliable access to capital for both buyers and sellers.
The Future of Mortgages Is Backed By Cryptocurrencies
Over the past few years, the ability to use cryptocurrency holdings to purchase a home has been a top priority for many crypto investors.
You had to wait a long time before you could use crypto earnings to pay for a mortgage, but today, thanks to companies like Milo, you can borrow up to $5 million for a 30-year mortgage term without having to register those gains. Their rates range from 3.95% to 5.95%.
With the use of blockchain technology and startups like Milo and Propy, we could eliminate the risk of mortgage fraud, which currently stands at 1 in every 120 applications.