Real Estate Tokenization as a Solution to the Traditional Market

The real estate market in the United States has been recognized worldwide for being very stable since it helps build equity. It is not very sensitive to economic changes; it has attractive returns and long-term appreciation, which protects owners against inflation. Also, we are talking about the most robust economy on the planet, very stable and attractive to millions of people who want to invest here and protect their assets with a strong currency.

Investors worldwide are willing to enter the US real estate market under any conditions, as they recognize the great value of these assets, especially in Miami. Historically, this market has had positive returns for over 100 years and has been known for its stability. But this market is also characterized by its high barriers to entering long transaction processes and being one of the most illiquid markets in the world.

Investing in real estate through security tokens creates solutions to some of the disadvantages of this market.

  • Since each token is worth $100 and you can sell one faster than the whole property, you will be able to get the money from the sale much quicker, making transactions more liquid and efficient.
  • As a property backs them, the volatility risk is reduced since the investment is returned by rental income and appreciation (this will be received when you sell your fraction).
  • It’s a solution for inflation since prices rise at least as much as the inflation rate. According to NeighborhoodScout, Miami’s real estate market has appreciated 166% in the last ten years. Last year, rents increased by 45.8%, primarily due to inflation. This means that the appreciation is protected against risks and returns.
  • You don’t have to get a loan to buy property since you can choose how much to invest according to your budget. This means that any investor has access. Plus, you won’t have to worry about the rise in interest rates.
  • You have personal custody of the investment, and you can buy or sell security tokens any time of the day without needing a broker or asset manager. Since it is a digital process, its execution has no delays.
  • If you are not a US investor, it also protects you against currency risk, as you will be receiving a return in USD. Investments in a currency as substantial as the USD is always a good option, especially when the currency in your home country is constantly devaluing.
  • Investing in security tokens allows you to diversify your portfolio since you can buy tokens in different properties instead of investing a large amount of money in just one.
  • The only thing you have to do is constantly review the price of your token(s) and identify the ideal time to sell it. 

If you want to learn more about real estate tokenization, go to our website and be part of the evolution of investments in the real estate market by investing starting at only $100 in the United States with BRET Real Estate Tokenization.

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