After disrupting the financial industry, blockchain technology is slowly trickling down to other industries. You may be wondering, ‘Is Blockchain Technology set to ‘rattle cages’ in the construction industry?’ The simple answer is yes. BitRent is an upcoming platform that relies on blockchain technology to improve capitalization and accessibility of the real estate industry to investors.
The current state of the real estate industry
The industry is one of the most attractive industry for investors. It is relatively stable, and the appreciation rate is always greater than the inflation rate. Many business people have made millions by properly leveraging the real estate industry. Furthermore, advances in construction technology have slowly improved the speed of construction or the environmental friendliness of the materials used.
Despite the benefits, few investors can leverage the industry due to its conservative nature. Some of the limitations that potential investors get include:
- The high cost of investment—The purchase and construction of buildings is an expensive endeavour, and most investors are unable to afford to make such investments on their own.
- The high fees charged by investment funds—Anyone who wants to invest in the real estate industry, but they do not have enough capital to do it directly can do it through investment firms. However, these firms charge exorbitant registration and administrative fees. This deters many potential investors.
- Geographical limitations—There are many legislations set by various countries that limit the ability of foreigners to invest in real estate. Such restrictions make it difficult for investors in certain regions to gain access to lucrative markets.
How BitRent will change the industry
BitRent will provide a platform where investors from all over the world can combine their capital to allow architects and building developers to create the next generation of buildings. BitRent will solve the following problems in the real estate industry by using smart contracts and blockchain technology. Why does construction need blockchain and smart contracts? The reason is that this technology can allow BitRent to add features to the platform that solve the existing issues. They include:
- Shared construction
The only way to lower the amount required to invest in the real estate industry is by adopting shared construction. Shared construction requires a lot of legal contracts to be used to ensure that the capital is not embezzled and that every investor gets his or her fair share of the project. Instead of relying on centralized authorities to manage these projects, blockchain smart contracts provide a more effective way of controlling the shared construction. It will also cost significantly less to manage the platform lowering transaction fees to less than five percent. This is substantially lower than the 10-20 percent charged by real estate funds.
- Architectural advancement
There are many new construction techniques and materials developed in the construction industry, but there has been little proliferation into mainstream construction projects. BitRent allows architects and construction managers to build houses while using modern technology like building informative modelling, RFID, prefabrication and green construction. As a result, the buildings will be more energy efficient and cheaper to construct and more artistic. This is possible only through the pooling of resources by investors on the platform.
- Geographical freedom
Investors can circumvent the geographical restrictions by investing in the platform. As long as you own BitRent tokens, you will be able to invest in any of the multiple construction projects around the world. No other real estate business offers such freedom to investors.
- Increasing liquidity
Investors are normally hesitant to invest in the real estate industry because it is not liquid. It takes weeks or months to sell property, making it restrictive for investors with a limited amount of capital. However, you will be able to purchase and sell real estate assets on the platform with ease. The smart contract technology allows the transfer of assets and remittance in moments. This gives you greater freedom of your wealth.
- Control over the construction process
The use of RFID and BIM will allow investors to have full control over the construction process regardless of their geographical location. The choice of materials used and setting of project milestones will be controlled by the investors in the construction project.
If any of the features highlighted appeals to you, you should take advantage of the upcoming ICO to be one of the first people to own BitRent tokens. They will be offered at a discounted price before the platform is launched to other investors around the world. As an investor, you can hold the tokens and use it to own real estate assets when the platform launches or you can trade the token at a higher value.
Our advice would be to use ICO to buy discounted tokens that will allow you to invest in whatever real estate projects you want regardless of geographical location. Grow your portfolio by investing in this next generation real estate platform.