Posted on 20-05-2022

Today there are many people who feel confused by so many new things, such as the great phenomenon of housing tokenization, and it is what comes after the tokenization of companies, that is why we will take care of addressing this issue with a background so that you do not have any doubts about it and you become an expert on the subject, such as the risks that you can face in housing tokenization.

First of all, we will start with the basics, what does tokenization of homes or real estate mean, since the phenomenon of tokenization is about taking care of digitizing an asset, but in such a way that the token represents and captures the best way the value that that asset possesses. , because the definitive one deals with the tokenization of financial assets.

The token

Another way of seeing housing tokenization is that a digital representation is made of a good through a blockchain. Let's try another way in case you still can't fully understand the concept, if some deeds are responsible for representing ownership of a property, how would it be done in the digital world? This is where the token comes into play.

A token can even represent the exploitation rights that exist on a property and the royalties that it generates once it has been sold. Before you start to practice the tokenization of homes, it is better that we delve a little into the previous steps that must be carried out for it.

Start by opening a wallet

For those who have knowledge in the world of cryptocurrencies and everything related to that subject, you will know the term wallet well, which is a cryptocurrency purse.

It can be said that it becomes a kind of bank account but that it is dedicated to storing cryptos, especially the most annealed ones such as ETH, BNB, and of course, real estate tokens that are responsible for representing some asset that is tokenized.

Sale and purchase of tokens

These actions of purchase and sale of tokens are carried out through the wallet, which before carrying out a procedure will request authorization in order to carry out the desired transactions.

In order to carry out a token sale, the first thing you must do is locate it in the wallet, then you will proceed to select it, and then you will choose the type of currency you want to receive in exchange for what you want to sell. In this way, you will be able to obtain the currency you chose for each of your tokens placed for sale.

As Erick Sánchez explains to us, an investor who makes his purchase in cryptocurrencies makes the decision to invest in tokens.

Something of vital importance must be kept in mind, which is that each token has a value of 100 euros, so regardless of the crypto that has been chosen to use, a quick change to euros is always made at the time of purchase, and there there is the capital that was used to invest.

As long as this process is carried out, the corresponding dividends must be paid monthly in USDT, which are dollars embodied in the blockchain. Once the property has been sold, the capital gain must be returned, and the capital in the same way in USDT.


Advantages of USDT

One of the many advantages that USDT possess is that you can always use them to be able to reinvest in the tokenization of homes or any project that includes cryptos.

In addition, these dollars have a very simple process to be converted to euros at the time you like or need through Exchange, a page that is responsible for sending the euros to the bank you have requested.

Real estate tokenization

Finally, we can start with our star topic today which is the tokenization of homes. It is well known by almost everyone that to be able to invest in the world of real estate in a traditional way quickly for the first time, you must know the entry barrier, a place where a certain amount of capital must be counted in order to acquire a good.


This will always apply, whether it is in search of profitability, rent, or if it is to sell it later. When performing tokenization, that barrier to entry disappears, since once the asset is tokenized, you will find yourself dividing the asset into shares that are digital, which makes everything a little easier, since they are much more accessible and subtly transferable.

Next, we will bring you an example that makes it easier for you to understand the subject, if a platform owns a property, which is tokenized in Benimámet, in Valencia, which has a value of 99,000 euros, this property has a size of 87 square meters where there are 4 bedrooms.

The token that must be offered to enter, that is, we are talking about the minimum investment that must be made to be part, has a cost of 100 euros, it must issue a total of 994 tokens, that is, we are talking about 994 participations. In this example, the company hopes that in the end there will be an annual return of 11.05%


Investment risks

If it is not rented and there are defaults, despite working with guarantee insurance, these are risks that people are exposed to when making the decision to start with the tokenization of homesAnother risk that is always present and makes investors' hair stand on end is that there comes a time when the property loses its initial value.

Something that is always made very clear is that the interests that are offered have a very speculative nature, which brings with it a very high risk, due to this it is recommended that only those people who can afford to lose all the investment they placed in the tokenization of homes they practice it.

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