Redefining Property Investment: How MetaWealth's Tokenization Is Changing The Real Estate Landscape
Real estate, one of the most profitable asset classes, has been inaccessible to most people because of the complex legal paperwork, management, selection process, and, most importantly, capital required. That might all change as two little-known technologies, tokenization, and fractional investment, go mainstream.
Tokenization is a process in which real estate assets are converted into digital tokens stored on a blockchain, allowing for digital ownership and the transfer of fractional shares. With a market cap of approximately $200 million and a market share of about 40%, real estate tokens have become one of the most popular digital securities investments. MetaWealth is one such platform that offers fractional ownership of tokenized real estate properties, breaking down conventional barriers to the market.
MetaWealth wants to ensure that the risk their users take is minimal when selecting properties or projects. To achieve this they have implemented a 60-point checklist, breaking down aspects such as a macro and micro market overview, flexible renting options, and the ability to liquidate the asset.
The company aims to assist individuals with limited financial knowledge or those not born into wealth to effectively diversify their investments. To achieve this, the company takes the workload on itself, bringing in a fully managed process, vetting assets, taking care of legal paperwork, asset management, and finding and managing renters.
MetaWealth addresses the historical inaccessibility of real estate investments by providing a user-friendly platform that allows individuals to explore and invest in real estate packages with as little as a hundred dollars. The platform's success is evident, having sold 66 tokenized apartments to users across 25 countries in less than one year, distributing $130,000 in rent and yields to its diverse user base.
"We want to break down barriers for investors, particularly younger generations who want to create passive income while maintaining their full-time jobs," says Amr Adawi, co-founder of MetaWealth.
The company caters to a wide spectrum of investors, including real estate beginners, portfolio managers, crypto enthusiasts, and family offices. By tokenizing real estate and issuing tokens on the blockchain, MetaWealth ensures accessibility to a broad demographic, allowing anyone to invest in the global real estate market no matter their location.
This investment platform's overarching goal is to assist millennials and Gen Z in achieving financial freedom. MetaWealth goes beyond being a mere investment platform and app, offering a suite of tools, including a personalized financial calculator, to guide users on their wealth-building journey. "We're not providing a quick solution but a disciplined, long-term approach to financial success," the co-founder articulates.
MetaWealth provides users with flexible exit strategies, in case they wish to do so. The users will soon be able to utilize a secondary marketplace, allowing users to sell their tokens to others. The second option allows individuals to vote on what happens to their property, giving them the flexibility of real estate ownership. MetaWealth will sell the asset for them, right from finding a buyer to the legal process that comes with selling a property. Finally, the company has provided a novel approach to exit its platform that involves pre-construction assets. These assets are two-year commitment plans, where MetaWealth will sell the asset upon construction completion.
MetaWealth has recently launched its newest pre-construction asset in Marbella, Spain. This 2-year commitment offers a 45.5% estimated return on investment. The deal includes a bank guarantee on the asset to protect consumers in the case of developer default. Banks finance these projects but only release funds to developers if milestones are met. This is a unique feature offered for this project, that ensures users are protected.
Looking forward, MetaWealth aspires to become a super app for managing wealth and creating prosperity. The company is constantly expanding, with assets in Athens on the horizon.
© Copyright IBTimes 2024. All rights reserved.