Allows one to invest in one's own choice of verified properties, in an international platform. Also time based investment horizon is possible where one invests say for a 2 to 3 years time horizon. In addition due to lack of long process and waiting times due to banking intermediaries, the transactions and value transfer is instantaneous.
Normally when we buy managed assets there are extra hidden costs associated with these instruments. One risk of non-traded REITs (those that aren't publicly traded on an exchange) is that it can be difficult for investors to research them. And with advent of tokenized assets we have a direct verification for each of the assets that a person is invested into including the exact equity they hold. Totally transparent and the rates in a particular city, provice, city, country will be reflected in this market price action. Hence we have far better information outreach that can be leveraged to take better decisions.
The housing market overall will determine the effect of the macro factors such as interest rate. When rates increase leverage on the financial market for the real estate decreases as capital can be deployed in banks to get equivalent return. And lending becomes more expensive. Since on this platform we are dealing with assets which are very liquid and not leveraged, this effect will be very low. Here on a peer to peer basis people sell their assets to raise some capital for themselves. Thus temporary dip in prices of assets can be offset by the high demand from global customer base and higher liquidity.
Non-traded REITs have little liquidity, meaning it's difficult for investors to sell them. In this case the global platform removing the need of any centralised intermediary between buyer and seller, is ideally suited to remove this liquidity topic. Now we can buy/sell small amounts of assets and people with small capital 1000 USD can invest in an asset to buy 0.01% of equity for example.
Due to stringent checks on individual assets being hosted on this platform, we are able to assure stakeholders (buyers/sellers) on the condition of the asset and the owner/lender. This level of transparency for each and every asset would ensure high level of trust for all, and due to removing all the intermediaries like banks, agents etc, we are able to offer better deals / offers in the marketplace.