Real Estate Tokenization: NFTs That Pay You Annual Returns

Today, I will tell you about a new revolutionary way to generate passive income while investing your money in a high-potential asset. Real Estate NFTs are making premium real estate investment accessible to everyone globally. With benefits such as higher liquidity, accessibility, and transparency, real estate tokenization is changing how people buy and trade properties. Visit bitstakeplatform.com for all-inclusive real estate tokenization and NFT services under one roof.

What is real estate tokenization (NFTs)?

Real Estate Tokenization is the practice of tokenizing real estate. It involves digitizing properties to be represented by crypto tokens on the blockchain.

Blockchain is a decentralized, distributed ledger that enables peer-to-peer transactions within its network. Blockchain operates through cryptocurrencies/ tokens that can be used to store digital value and transact through this network. NFTs, or non-fungible tokens, are special tokens that cannot be exchanged or replaced. They can be used to represent unique, high-value assets such as real estate.

In the real estate tokenization process, the property is divided into fractions such that each fraction is represented by a token on the blockchain. Each NFT token is unique and can be traded over the blockchain network, allowing property owners to sell and investors to buy fractionalized real estate seamlessly and securely anywhere in the world.

In this article, we’ll discuss the process of real estate tokenization in detail through the example of the Bitstake real estate NFT platform.

How is Bitstake revolutionizing the investment space and helping property developers and buyers?

Bitstake is a blockchain-based real estate investment platform that enables property owners/developers and buyers to connect to buy and sell tokenized properties through NFT tokens.

Bitstake partners with property developers and owners to tokenize their properties such as apartments, flats and houses and sell the ownership deed as non-fungible tokens through its marketplace.

A property owner looking to sell their property can create a Developer Account on Bitstake to start tokenizing the property. The asset is fractionalized and tokenized to be represented as NFTs. For example, the ‘Aspire Melbourne’ apartment listed on the Bitstake platform has been fractionalized into 1293 equal NFTs. This increases liquidity for developers, allowing them to sell their properties quickly and easily.

NFTs can be used to fractionalize and sell practically any type of property, from apartments and flats to standalone houses and land. Owners and developers looking to tokenize their apartments into NFTs for higher liquidity can visit bitstakeplatform.com.

Investors seeking to buy real estate can sign up on Bitstake to get access to fractionalized real estate through NFTs. They can buy fractions of an apartment at a relatively lower price per NFT rather than the need to buy an entire property. In the above example, the ‘Aspire Melbourne’ apartment listed on the Bitstake website can be purchased in the form of NFTs, with each token costing only A$500. For a fairly small amount, you can get a stake in a premium apartment in an upper-class locality in Melbourne VIC, Australia.

This improves accessibility and allows real estate investors to diversify their portfolios. Even buyers with low wallet sizes or based in countries other than Australia can invest in real estate NFTs online on the Bitstake platform.

Another benefit of purchasing fractionalized real estate on Bitstake is the Annual Percentage Yield.

What is APY in real estate NFT investment on Bitstake?

APY refers to the Annual Percentage Yield, which is the annual return an asset or investment can produce. All properties listed on the Bitstake platform offer an annual yield, which is a great way for investors to make a regular side income from their investments. This APY is generated from the monthly rent paid by the tenants occupying the property in question.

For the ‘Aspire Melbourne’ apartment listed on Bitstake, the estimated APY is 11 - 12%, which means stakeholders (NFT holders) get an annual return in the range of 11-12%. The actual amount is calculated based on their investment or stake in the property. Besides this, the apartment’s value is also expected to grow at an annual rate of 5 - 6%, producing massive returns for the investors when they sell.