Blockchain will revolutionize the property investment market via connecting buyers, sellers and investors through online communities of interest and investment.
Real estate is historically one of the more stable forms of investment. It is one that also involves the least amount of risk as an investment mechanism. The global value of the developed real estate is over USD $217 trillion. This is a larger annual total than all traded equities and securitized debt instruments put together.
However, this enormous market is highly fragmented and still relatively unpenetrated by technological innovation. The cost of entry is also very high. And there are many variables – to the kind of financing available for individual buyers to verify the information about the property itself.
According to industry analysts like Deloitte decentralized ledgers and digital tokens are the “new kid on the block” in this industry. And blockchain absolutely has the potential to reinvent if not upend the traditional way property is bought and sold. Not to mention invested in.
Etherty is a blockchain-based international real estate investment platform. The idea is to make the purchase of property – anywhere in the world – more accessible and easier. The company intends to cut across traditional barriers to allow seamless international property trading. Imagine the ability to participate in a country’s real estate boom, from anywhere, and not have to deal with local (if not foreign) bureaucracy? And further be able to do it with an amount that previously could not even buy the cost of the plane ticket to get there?
How do Etherty plan on doing this? They intend to lower the minimum threshold required for property investment using tokenized real estate units to create a marketplace for the trading of global real estate shares.
The platform provides all the tools necessary throughout the transaction chain – from assistance in creating the right kind of listings, inspecting properties, valuing them accurately, and providing stock market-esque indicators through the end of the transaction.
The platform is also intended to become a one-stop solution for all property transactions – accessible from any mobile device, allowing users to network with other property investors.
The elements of the Etherty system include:
Property Listings: Both properties themselves and property ICOs will be listed on an easy-to-access portal.
The Etherty Trading Platform: The ETP is envisioned to be a “social network” for buyers who are new to the property market and seasoned investors. It is a custom-built, decentralized exchange where the system’s property tokens can be liquidated or exchanged for other property tokens, other cryptocurrencies or even fiat currency.
Smart Contracts & Blockchain registry: The registry will list properties for sale, ICOs, and provide rental service contracts as well as a decentralized token exchange.
In contrast to the tedious and involved process of real estate purchasing and selling, Etherty enables everything to be done in the comfort of the user’s home.
Real estate investors can begin to invest in the platform’s property portfolio with an investment that starts with a minimum of USD $1,000. By keeping the bid in escrow, the platform will then facilitate the sale of the property to multiple shareholders, creating the right legal structure, using the smart contracts of the blockchained engine. Custom tokens are also created for each project, to prevent a dilution of investment by any one party or individual. This means that a user who has invested in a successful project in Thailand with a 10% return will not be penalized because of the poor returns of another project elsewhere.
The web portal will also allow users to rent properties on short or long-term leases. The rental property will be managed by Etherty directly or in agreement with local affiliates. Rental income will then be distributed automatically using the smart rental contracts generated by the platform.
How easy is it to use the platform? Super easy.
Sellers post their intention to sell a property or accept a buyer offer, list what is for sale, and give a summary of the sale. A buyer (or group of investors) places an intent to buy order or agree to accept the seller’s offer. They then transfer funds, including transaction fees, with the use of the platform’s tokens, and also receive a summary of the purchase.
The Etherty platform works in between these communications to lock tokens upon an offer, transfer funds, update the ownership and smart contract ledger, and transfer tokens and funds to the right parties.
Investors in the crowd sale can exchange their tokens immediately for real-estate in the company’s existing property portfolio that already exists on three continents.
Users of the Etherty system can look forward to the following benefits:
List your property or development: List properties anywhere in the world for either sale or investment.
Create smart contracts: The contracts can be used for all of the transactions on the platform – and include rental agreements, investments, and payment for additional services.
Access advertising and promotion services: Promote your project, investment opportunity or property to a community of engaged users and investors.
Book property shares: Crowd offerings for both temporary rentals or property purchases.
Obtain accurate information about properties: Valuations and inspections are all linked to the properties listed.
Regulatory assistance: Obtain the correct and timely help in setting up the right legal frameworks and get government verification of the completion of the transaction.
Trade your property shares: Exchange your property shares for any of the listed properties on the platform – anywhere they are located.
Search global listings: Use the platform’s analytics to maximize value.
Book your service: Use the platform’s one-stop offerings in all their locations. Need a handyman for repairs or investors for your new condo development? Look no further than the Etherty network. Book and pay with the system token. Nothing could be easier and less stressful.
Access the Property Investors Network: Share tips across the Etherty property investor network.
Here are the details of the upcoming Etherty token sale:
Token name: ETY
Token base: ERC-20 utility token
Token supply: 240 million
Token Accepted: ETH, BTC, fiat currency
Token sale duration: Currently in a private sale (with 50% discount on tokens). Pre-sale (with a 30% token discount) is between February 1 – March 8, 2018. Public sale is between March 15- April 30.
Token sale target: USD $2 million (soft cap), $20 million (hard cap)
Token price: Varies, depending on discounting schedule. With 50% discount, the price of the token is 7.5 ETY per dollar invested.