Tokenized Real Estate versus Traditional Real Estate
Adopting new technologies has always been met with resistance but when its user cases become real, users jump in. This is the case with tokenization of real estate where traditional investors in the sector are not sure whether to adopt the change or stick to the old systems.
However, when you look at the tokenized real estate and the traditional real estate, the tokenized landscape comes with more benefits both to the asset owner and the investor. Here are some comparisons between the two investment options to help you make the right decision before investing in the industry.
Better Asset Management 
Tokenization of assets free up much of your time helping you concentrate on your other businesses. In a tokenized economy, purchases of assets change of ownership and sale of shares is automated. You do not have to physically hop from one office to the next to transact in the rea estate sector.
When processes are automated, transaction costs are drastically reduced and are more transparent. You can see all your transactions on your smartphone from the comfort of your living room. In addition, transactions are permanently recorded and cannot be changed without your consent.
Traditional real estate has always remained complex since there are many players in the market. This tends to sow down transaction times and cases of fraud are common. It also exposed you to double ownership leading to unending court battles as a result of middlemen who are untrustworthy.
Real Estate Tokenization and Access to Global Market
Tokenization of real estate opens up the industry across the borders and you can own a piece of property anywhere in the world. Once an asset is tokenized through a blockchain backed network, any investor can participate in the ecosystem to buy asset backed tokens and trade online.
With the traditional real estate model, property ownership is restricted to geographical locations and you have to purchase the entire property you are interested in as opposed to a tokenized one where you can own a fraction that you can afford.
24 Hour Tokenized Economy
Real estate tokenization is set to transform the sector to a 24 hour economy. Transactions are online through a blockchain and investors can transact anytime, anywhere; a factor that increases the real estate vibrancy. There is no dull moment for the real estate stakeholders in a tokenized environment.
Traditional real estate has been restricted to certain working hours as a result of global time differences. This slows down the speed of transaction which ends up making the whole process expensive. Most of the processes are paper based and manual and this is not healthy for the investor at this digital age.
Asset Movement Freedom
Some good news about real estate tokenization is that your investment is never “locked” awaiting maturity. You can sell your digital assets anytime you deem apt. This allows you to make decisions on the right time to sell and make profits. On the flip side, you can buy more digital assets when other investor are selling ad grow your portfolio in the market.
With traditional real estate asset ownership, you cannot dispose of your funds at will. There are some conditions to be met before you exit the market. This is tedious and time consuming and tends to tie down your funds when you really need it.
With the above comparison, it is clear that the benefits of real estate tokenization outweigh those of the traditional real estate. However, the tokenized economy concept is still in its infancy and better things seem to be in the offing. It is up to you as an investor to make the right decision at the right time.
