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How can NFTs be used in Real Estate- the new place to invest!

September 7, 2022

What is meant by virtual land in the metaverse and why buying some could add some value to your investment portfolio? Real estate in the Metaverse might be the right place for you to invest now so you can get a good return of investment in the future.

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In the metaverse one can now find all different kinds of investment opportunities and buying virtual land can be one of those. So let’s list a few options of where and how.

NFTs Real Estate in the Real World

  • NFTs can be used to represent ownership of real-world property – through use of NFTs no middlemen are needed to make sure the deed is in place as blockchains verify ownership.
  • Fractionalized investments – this is when you can sell part of a property you own to several investors by issuing tokens on the blockchain (NFTs). Those investors could then gain some rent for having those tokens or alternatively gain on the appreciation of the property should it be sold. Revenue is issued to token holders pro rata on a continuous basis.
  • Loyalty programs – offer clients to take part in a raffle or lottery and award them with NFTs to gain special benefits later and gain loyalty points. This 

NFTs Real Estate in the Metaverse

Buying virtual land in the metaverse is like investing in digital real estate. Here’s what you need to know if you want to buy a virtual property:

  • Have a Crypto wallet - There are several different crypto currencies on the market, you can decide which coin you want to buy and have in your wallet. There are some properties that also enable the use of tokens which can be bought using a credit card within games. 
  • Buying NFT virtual land- comparable to any other online purchase, as in once you choose a plot of virtual land to buy that fits your budget you will be prompted through the steps to complete the process. After purchasing a virtual plot, the transaction is recorded on the blockchain, and the NFT will be transferred to your digital wallet.
  • Becoming an Owner - Once the transaction is complete you can check your NFT marketplace or in-game account and see that you now own a NFT virtual property. 

Conclusion

 Due to the security the blockchain provides, NFTs provide a more simple and secure way of transferring ownership of real estate or shares in real estate investments, on- as well as offline. Virtual real estate or NFT real estate is a commodity of the metaverse that should be considered as an investment opportunity. Although some research is required to understand what property is best for you to purchase, the process itself should be quite straightforward. 

FAQ's

Can you buy a house with NFT money?

Already today, NFTs can be used to represent ownership of real-world property and of course you can purchase property in the metaverse as well. Currently there are plots for sale with the potential to build an actual house. An interesting space to watch!

Are NFTs digital real estate?

They can be, yet as an NFT represents something unique and can be attached to any physical item, it could also be real world real estate and not just the digital, metaverse kind. 

What does NFT mean in real estate?

It refers to the blockchain technology to allow investors to buy and sell property tokens. Each token is unique (NFT), making it a more secure investment than traditional real estate.