Buying Land 1 square meter at a time
I have been toying round with this idea for some time.
There have traditionally been three safe haven assets in the world:
- Gold
- Bonds
- Land
With stagnant inflation rates offered on government bonds there is now really any two. Gold and Land. Gold is the stable of any portfolio, but land is harder to invest in. How about an assert that enables you to buy 10 square meters of Manhattan and say 30 square meters of Hong Kong? This would enable people with smaller portfolios to diversify.
Just an idea
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@sevenearths - tokenization (or fractionalization) of real estate is starting to occur in the United States.
Look-up companies like QuantmRE, Unison, Point, HomeTap and Noah.
I know QuantmRE is looking to take Home Equity Agreements (Home Equity Interest) and eventually put them on a marketplace where individuals could buy into smaller quantities of them.
I'm an investor (small investor) in QuantmRE, which is why I'm familiar with the market.
You may want to check out their crowdfunding campaign on the Republic website to learn more about what they're doing.
It sounds like you'd like to see the same thing happen with land.
If the land is unoccupied or undeveloped, I don't see the major upside of selling microportions of the land via some form of Land Equity Agreement unless the land itself is in a highly desirable location that has very high likelihood of near-term development.
Yeah this is like that but based on the derivative model. I.e. you don’t own the asset be get exposure to the underlying price.
I’ll look into QuantmRE. Never heard of them but I’d be interested to see what they are doing
It sounds very similar to buying shares in a real estate investment trust. Or were you thinking of getting that land titled in the investor's name?
I was thinking a token on the ethereum blockchain pegged to real estate pricing data (much like stable coins like USDC)
I don't know if you've seen the ads on fb, but there's currently a huge promotion going on wherein if you buy a small patch of land in ireland? scotland? you are entitled to the label "lord". thus legally in their country you can buy yourself a royal title for a little cost, I think it was 1 sq foot.
You have to ask yourself, what does buying 10 sq m of land get me? Who manages it? Who pays the taxes on it? Do I get a say in managing it? Will it take decades for me to make a couple of dollars back on my investment?
I helps you retain wealth in a traditionally non-deflationary asset