Frequently Asked Questions about Real Estate Investment: Find out all you need to know
Real estate investment has long been a reliable and solid way to grow wealth. However, in an ever-evolving world, new ways of investing in real estate are emerging, and Equito is at the forefront of this revolution thanks to tokenisation. Here, we'll answer some of the most frequently asked questions, hopefully helping you to make informed decisions and access this exciting market from as little as €100.
1. What is tokenised real estate investment? Tokenisation is the process of converting an asset, in this case a property, into digital tokens or fractions of ownership. Equito uses this technology to allow investors to invest in parts of properties rather than acquiring the entire property. This makes real estate investment more accessible and liquid, as investors can buy, sell or these fractions more easily than in traditional real estate investment.
2. How does Equito work and how do I get started? Equito facilitates access to real estate investment through its app. Users must register, browse available properties, and choose the amount of tokens they wish to invest. Once you have the tokens, you are financially entitled to receive monthly rents and a proportionate share of the sale of the property.
3. What are the benefits of investing in real estate through Equito?
Diversification: By investing in fractions of different properties, you can diversify your portfolio and reduce the risks associated with investing in a single property.
Ease of access: You can start investing in real estate from as little as €100 in less than 2 minutes.
Improved liquidity: Unlike traditional real estate investment, tokenised fractions are more liquid, which means you can sell them more easily and eliminate most of the bureaucracy than in traditional investment.
4. What are the risks? Every investment carries risks, and real estate investment is no exception. Property prices can change, which could affect the value of your investments. Then there are the same risks involved in traditional real estate investment. For this we work on different solutions, so that the risk is reduced as much as possible. For example:
Empty rooms: For this, we analyse the areas, their demand, and their future growth. In addition, we carry out a detailed filtering in order to choose tenants who offer security and a long-term stay.
Spillages, unforeseen expenses, etc..: Within each property, you will see a maintenance reserve section, planned for all these unforeseen expenses.
5. Do I need to be a real estate expert to invest with Equito? You do not need to be a real estate expert to start investing with Equito. The platform provides detailed information on available properties. However, it is always advisable to educate yourself on the basics of real estate investing to make informed decisions.
6. Can I invest for the long term or do I need to sell at some point? You can choose your investment approach according to your financial goals. If you prefer to hold your investments for the long term and benefit from rental income and potential appreciation over time, you can do so. On the other hand, if you want to sell your tokens, before the sale of the property. We are currently launching buy-back programmes. We are also working to launch the secondary programme during 2024.
In short, Equito opens the door to a new era of real estate investment, allowing investors of all levels to access this market in an accessible and flexible way. Understanding the basics and benefits of real estate investing through tokenisation will help you make informed decisions that will help you diversify your portfolio and take advantage of the opportunities offered by this exciting investment approach. Start your journey into the world of real estate investing with Equito today!