REALISTO PLATFORM: The Digital Equity and the Real Estate Market
The Market
The “hot” real estate market price is continually elevating. Thus, the average selling times are short and the volume of transactions is higher than the standard average operation. One of the distinctive and puzzling features of the real estate market is the dramatic variation in real prices and sales volume over time. The total sales of existing homes increased from 1.6 million in 1970 to 3.8 million in 1979. Over that time period, the price is steadily rising up to 41%.
Some have argued that the positive price-volume correlation in real estate is due to sellers while other have suggested that the volume decline in a down market may be a rational response by sellers who recognize that at current prices real estate investments have positive future returns. “Cold” markets have the opposite characteristics: prices are falling, liquidity is poor and the volume is low. It demonstrates the good liquidity when prices are high because the opportunity cost of failing to complete a transaction is high for both buyers and sellers. According to Krainer, J. (2001), A Theory of Liquidity in Residential Real Estate Markets, “It also shows that the state varying liquidity depends on the absence of smoothly functioning rental markets.”
Market Transactions
In order to foresee the above-average return on investment in real estate, it requires having vast amount of capital. However, some investors have fraught with inefficiency and disadvantages so even though they have so much conventional system applied. Therefore, investors must gain a foundation in the substantive law underlying real estate transactions. Second, understand the professional and ethical questions related to the subject matter. And third, develop the analytical and practical skills to address legal issues associated with the conveyancing and financing of real property.
Various system and method for tracking real estates transactions have increased the cost of transferring real property and it is provided to increase protection to the real estate brokers and the tenants in terms of property settlement. Real estate security will reduce risk-adjusted excess return. According to Sagalyn, L. (1990) Real Estate Risk and the Business Cycle: Evidence from Security Markets, “The ex-post performance of survivor REITs and RECs over a 14.5-year period covering several business cycles; results shows that the systematic risk and risk-adjusted returns of REITs and RECs are quite different, especially during periods of low growth in real GNP.”
The Digital Security
REALISTO uses Blockchain technology that enables the creation of decentralized currencies self-executing digital contracts (smart contracts) and intelligent assets that can be controlled over the Internet (smart property). Smart contract is self-fulfilling agreements between network members in which it correspond upon protocol. Every digital transaction must pass through a blockchain to verify that the transaction is protected by sophisticated cryptography.
By using the blockchain technology of Ethereum-based smart contracts and by applying expert industry savvy, REALISTO provides a platform that enables real estate experts to present projects, launch an asset-backed token, and virtually invites anybody with high-yield investment properties. REALISTO is a crowdfunding campaign in which investors will immediately receive value for their money, in the form of asset-backed tokens. “REALSTO offers a new, accessible way of investing in real estate, made possible by a platform with transparency, integrity, and industry expertise at its core.”
More information about REALISTO visit: https://realisto.io/
Whitepaper Link: https://realisto.io/files/papers/Whitepaper/REALISTO_Whitepaper_V1.2_EN.pdf
Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=1402538
