Living on income is the dream of many people and receiving rent is one of the ways to turn ownership of real estate into cash. But investment in real estate, in addition to being expensive, is still bureaucratic, which practically makes financial support by small retailers unfeasible. However, this reality begins to change due to the “fragmentation” of real estate into smaller parts, which are linked to crypto assets, a process known as real estate tokenization.
That’s what Netspaces did, a platform for creating, trading and managing digital properties that has just sold 400 non-fungible tokens (NFTs) linked to the deed and registration of a commercial room in Porto Alegre. Which entitles each NFT holder to receive part of the nearly R$1,000 per month for which the 32-square-meter room in the Santa Cruz building, the tallest in Porto Alegre, is rented, according to information from Exame.
According to the publication, the owner of the property decided to put 100% ownership of the property up for sale in June of this year, which made the room become “the first digital property in the country”, according to statements by the CEO of Netspaces, Andreas Blazoudakis .
“As a result, transactions arise that until then were not possible or economically viable, such as buying and selling in small fractions. People who couldn’t access the real estate market because of very high tickets now have the opportunity to accumulate properties over time, fraction by fraction, with all the benefits and opportunities of the real estate market in general”, explained the executive.
Netspaces also reported that the sale of the property’s NFTs continues, as the goal is to divide the room into 500 digital owners through peer-to-peer (P2P) transactions within digital wallets on the fintech platform.
For the time being, 400 NFTs were sold over 120 days, purchased for amounts ranging from R$ 2.50 to R$ 4.8 thousand. This is because each NFT represents a certain fraction of the property, which is why the receipt of part of the rents is proportional to the percentage that each NFT represents in relation to the total property, currently valued between R$ 150 thousand and R$ 250 thousand, according to with the values for which the NFTs were traded. On the other hand, if the property is left empty, the payment of the Property Tax and Urban Land Tax (IPTU) is apportioned among the holders of the tokens.
The company also facilitated the purchase of a house by a day laborer who could not get credit to fulfill her dream of owning her own home, through the use of her own NFT as a guarantee for the BRL 129,000 that represented the tokenized property.
Participating in Construsumitt 2022, an event that took place in Florianópolis in September of this year, Andreas Blazoudakis estimated that tokenized properties will account for US$ 40 trillion of the real estate market in 10 years, as reported by Cointelegraph Brasil.