5 Reasons why Real Estate Tokenization is good for Investment 
Traditionally, investment has been perceived as a club affair with its own language and rules. However, with asset tokenization becoming real, the perception is changing fast. The only thing standing between asset tokenization and traditional form of investment is resistance to change.
Investing in digital assets might not ring bells into many investors’’ ears but the forth industrial revolution is set to shake many industries. Asset tokenization comes with many benefits and any asset under the sun can be tokenized through the blockchain technology. Here are some reasons why real estate tokenization is a must for the modern investor.
- Fractional Real Estate Ownership
Real estate tokenization adds value to the entire chain and fractional asset ownership only allows you to take as much or little you can afford. When shares are digitalized, they become highly divisible. You can buy the percentage that you are comfortable with. This opens up the market for small scale investors to onboard.
Simply put, tokenization does away with the analogue systems of doing business in the sector. You no longer need millions to buy a real estate asset. With as little as $1000, you can become a landlord in a few minutes.
- Real Estate Tokenization Showing Intermediaries the Door
If you have been investing in the traditional real estate market, you know how intermediaries have been slowing down transaction processes making them time consuming and expensive. Once these are shown the door, transactions will seamless and affordable.
Use of security tokens gives the industry a new structure which is automated. This makes transactions cheap, traceable and transparent. What’s more; the transactions are immutable and cannot be altered which means transactions are legal and cannot be compromised.
- Maximizing on Liquidity
Shifting to investment that is blockchain supported means a new era of frictionless transfer of assets in a compliant environment. Automation eases the complexity associated with fiat economy. With real estate tokenization, trading of real estate asset is on a P2P platform which is regulated and open 24 hours.
The use of regulated crypto exchanges, you can convert your security tokens into fiat. All the transactions are done online in a fool proof environment. You have the freedom to trade with other real estate investors globally. In addition, you decide when to sell your shares or increase your holdings.
- Real Estate Tokenization Gives Legal Protection
Security tokens are regulated and this covers your investment legally. You do not need to hire legal experts to transact in a tokenized economy. The blockchain in-built legal framework protects you and those you are transacting with.
- Improving on Existing Infrastructure
Real estate tokenization is a new product in the market and keeps on improving. With the tight knit security token regulations, you rest assured that your investment in a safe pair of hands. The security tokens have become the darling of market compliant exchanges and other market custodians and you cannot go wrong investing in a digitalized real estate.
Lastly, real estate tokenization is a value addition in the sector. The technology is set to shape the future of investing not only in the real estate but other sectors. Adopting the new investment opportunity is a surefire way of making your future bright.
