Real estate investing that is fractional and seamless
For the first time, investors around the globe can buy into the Japan real estate market through fully-compliant, fractional, tokenized ownership. Powered by blockchain.
The sale of real estate is riddled with transaction costs. Once a buyer and seller agree to exchange the property, several third parties are brought into the transaction, such as bankers and real estate agents. Realtors charge an average 6% of the sale price, and legal fees and jurisdictional taxes add to this. Legal processes, sourcing of finance, and other red tape slow the process down, and add middleman costs
Private, Siloed Markets
Since there is no public market for real estate, exchange of property is achieved privately. Public markets offer constant price discovery and asset valuations, while the private market for real estate operates on an opaque, “as needed”, basis. Because properties are not frequently bought or sold, the valuation of a home must be analyzed for every exchange, which slows down and adds costs to the transaction.
As alluded to in the introduction above, real estate is the highest- valued industry in the world. This results in property ownership being prohibitively expensive for the majority of the world’s population. Even the most inexpensive homes often have too high a price for the average person to accept. For the middle class, the high cost of real estate makes the purchasing of a home closer to a cultural rite-of-passage, rather than a calculated investment decision.