How NFT and DeFi are revolutionizing real estate investing and home ownership

The NFT continues to impact many sectors. It opens up new possibilities and reveals new trends for blockchain technology.

Recently, the real estate sector has shown interest in blockchain technology due to its potential for fractional ownership, crypto-backed mortgages and ownership models, sponsorships, and other unique payments.

Here are some real estate focused blockchain projects to bring DeFi, crypto payments and NFT to the industry.

Property

Propy is the largest real estate-focused protocol in the crypto market. It focuses on automating the home buying process and making the checkout process faster and safer.

After becoming the first company to launch a real estate NFT in 2021, Propy caused quite a stir at the recent US real estate NFT auction thereafter Selling a house in Tampa, Florida for 210 Ether (worth about $650,000).

“The first real estate NFT auction in the United States is history. Thank you to everyone who took part and cheered us on. Congratulations to the lucky winner, we can’t wait to see what you make with Propy next!“.

In addition to proof of ownership for owners, real estate NFTs generated by Propy can also be used as proof of collateral for electricity-based loans and loans.

Milo offers crypto-based mortgages

When it comes to paying off a mortgage, crypto holders are currently struggling with choosing which tokens to cash out and are also subject to a taxable event as there are few options to choose from.

Milo is a Miami-based fintech startup that claims to offer the world’s first “crypto-collateral” by allowing customers to use Bitcoin (BTC) as collateral to qualify for a loan.30 years.

Once launched, the service will be open to US and international clients looking to buy real estate in the United States.

The company has processed a number of loans during the ongoing Early Access period, but those interested are encouraged to sign up for the waitlist.

Home equity is moving to DeFi

Evidence of the growing popularity of real estate-focused projects in the blockchain ecosystem can be found by looking at some of the projects that have emerged in 2022.

Vista Equity is a recently launched project that aims to become the world’s first leading peer-to-peer (P2P) marketplace for property-backed NFT investments.

“We have debuted! A home can now be fully encrypted to give consumers new financial freedoms. Investors can now buy real estate-backed NFTs as securities.”

Vesta Equity’s goal is to enable homeowners to tap into equity in their homes through tokenization. According to the company, holders can then sell part of it as a partial NFT.

Typically, property owners unlock their equity through refinancing or sales, and tokenization overcomes this problem by providing investors with a simplified way to invest in assets.

QuantumRE is a similar project that has just started. As with Vista Equity, QuantumRE’s goal is to match homeowners with investors to make it easier for homeowners to access debt-free financing while giving investors access to residential real estate.

To that end, QuantumRE supports the creation of a Home Ownership Agreement (HEA), a type of financial instrument that allows homeowners to receive a cash payment for equity in their home without monthly payments, interest, or additional debt.

The deal can be resolved by selling the home, refinancing, or extending the contract. By creating a liquidity and trading platform for HEA, QuantumRE supports a secondary trading market for HEA that can be tokenized and segmented.

QuantumRE says the first segmented HEAs will be available on the platform in Q1 2022.

An interesting note is that both Vista Equity and QuantumRE are launching their products on the Algorand blockchain, citing the network’s fast processing speeds and low gas fees compared to the Ethereum network.

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