Exploration of Tokenizing Property Ownership
- Hua Hin, Thailand -
Tokenizing Real Estate
Tokenization refers to a digital representation of an asset on a blockchain. Any asset can be tokenized, including investment tools like bonds and equities, physical assets like art and real estate properties, and intangible valuables like identity and data. Essentially, a real estate property is tokenized by dividing it into fractions and automating the operational process using smart contracts. The first step is to divide the property's value into smaller bits, depending on the property owner's choice. Then, the property can be purchased bit by bit through these tokens, either by many different investors or by one person.
Goals of Tokenization Exploration
Investing in real estate in a foreign country can be challenging, difficult to finance, and quite a commitment. For most people, the idea of retiring overseas is their dream, but they get stuck between throwing away rent money year after year, or risk having full ownership of an asset they cannot sell quickly if life changing events occur.
Fractional ownership has been around for decades, but until tokenization, the old system still required lots of paperwork, travel, and difficult to sell. With tokenization an asset can now be crowdsource funded from just about anyone in the work and the barrier to invest is much lower.
Advantages Of Real Estate Tokenization
One of the advantages of tokenizing real estate is that it opens up the real estate market to smaller investors, thereby increasing movement and demand for all properties. Let's say I have a property that is worth $100,000. I could create 100 tokens, each valued at $1,000. This would turn selling your property into a process similar to crowdsourcing. I wouldn't have to wait for one prominent investor to purchase my property. Instead, 100 small investors could do the trick.
Moreover, smart contracts handle the whole process of tokenizing and selling on-chain, leading to transparency, automation, and security. The role of costly intermediaries like agents, banks, and legal representatives are handled by smart contracts. A smart contract can automatically sell a token as soon as the conditions are met, which is much faster, cheaper, and error-free than a human intermediary.
Finally, the added benefit of blockchain technology appears in real estate tokenization as well: Security and transparency. All the sale and ownership processes take place and are recorded on-chain. This data is accessible to anyone and is almost impossible to tamper with. Therefore, all transactions remain trustworthy.
KandiPlaces is in the process of registering the business in Thailand and is not operational or monetizing in any way. The website is currently in exploration mode only to gauge interest, and build a community until the registration and full compliance is completed.
The Kandi token has not been minted, and will take to design the tokenomics which will be based on regulations to ensure there is no needed pivot to the business model. We appreciate your interest and hope you find the information provided by the website is beneficial until. Follow us on on our Facebook page for updates on our progress.
