Not all real estate investments go smoothly due to lack of transparency, poor communication and weak financial and/or project controls, but the Instant Assets Tokens (IAT) serves as a platform in linking the gap between the real estate developers and investors.
Generally, a real estate developer is someone who develops new properties and prepares it for development and manages the construction process while a real estate investor focuses on investing a certain amount of money for the purpose of buying an investment property to rent it out or even sell it as soon as it was renovated or furnished.
Real estate investors might find it hard to invest in a property especially when there is no accuracy and transparency in annual budget costs and unclear assessment and explanation of budget variances. It will also be difficult for them to invest when there is no centralized document storage, no security or adequate sharing and access controls and no auditable system of record for documents that have been exchanged all throughout the transaction.
On a more positive note, a new trend of buying properties online has been reported and has been growing in some Asian markets. This trend indicates that global investors are always on the look-out for investment opportunities and are fairly comfortable to edge away from the traditional process of buying a property. With the right amount of information provided to them via online platforms and the degree of security in place to ensure that the transaction get completed smoothly and securely, this emerging group of investors are very willing to transact online.
IAT aims to mitigate the risk of a transaction between the real estate developers and investors wherein it allows them to track costs, monitor the progress, audit processes, and set benchmarks. Through this innovative real estate platform, there will be a speedier transaction, lower cost of capital, and at the same time ensuring documentations are immutable. In fact, a 2013 study by the Oxford University estimated that AI has a 98% chance of replacing real estate agents.
With this, developers will be able to achieve a huge cost savings when marketing their projects overseas, especially when the cost of setting an office, roadshow, show room or a model unit is a huge chunk of their marketing budget. In turn, developers could divert that cost savings into providing investors with a bigger discount and thus increasing the investor’s returns.
IAT will serve as the bridge in fulfilling the gap of real estate developers and investors because it is a platform that maximize the benefits and lessen the inefficiencies as much as possible through the use of blockchain technology in real estate transactions.
