Real Estate - Ethically Combating the Housing System

[BennyBennassi]

Looking for critique from those experience in Blockchain and Decentralized Finance:

Housing market in Ireland:

•   government have failed to solve the problem of housing through their build schemes and their rent aid scheme.
•   private sector has a culture of not renting to those approved for rent assistance (the demand is so high for rental accommodation discrimination is difficult to prove).
•   Those traditionally capable of purchasing homes find it extremely difficult due to lending rules (after 2008 crash).

From my understanding of blockchain and DeFi I propose:

•   Tokenizing an entity that will purchase housing/property
•   Tokens sold will raise Cryptocurrency and FIAT currency
•   All assets raised from tokens will be held (to protect against fluctuations in Cryptocurrency)
•   Assets will be used as collateral to raise a loan (in Euro to purchase in Ireland)
•   With the Euro funds, housing/property will be purchased (conservatively leveraged)
•   Rental Income will be achieved. Those approved on government rental assistance would not be excluded.
•   Effectively a real estate venture but with a ethical goal to achieve drive fair housing access, the reduced upside is balanced by increased security due to government guaranteeing to pay rents.

My Profile: I am a rental tenant in one city and a landlord in another city. I have rented to private individuals and I have rented to those in the rent assisted scheme. So I experience all sides of the coins.

[Husires]

I do not know if there is a project that has effectively integrated real estate, financial systems and DeFi tokens.
you need to answer to this:

What is the current real estate problem that cryptocurrency or DeFi tokens can solve?

Ireland's housing market problem is the lending rules and value fluctuations. Tokenizing an entity will exacerbate the problem.
It becomes like someone who wants to install nails using his hands instead of using tools.

DeFi financing can increase your cash hold and use that profits to try to buy.

[BennyBennassi]

I do not know if there is a project that has effectively integrated real estate, financial systems and DeFi tokens.

Still researching but RealT.co seem to have excellent working model (profit orientated though). Listened to 3 podcasts by COO, BDO and Co-Owners (real estate people). Worth a listen on: Into the Ether, Crypto & Things and Payments Show.

The problems Blockchain and Defi solves as an investor are liquidity of a rigid asset, allow lower entry levels for small investors (RealT as low as 50USD), remove the chunking entry barriers of traditional real estate investments.

That is use on the investor side, the flip I am more interested in is can it also function at a certain ethos: can it drive access to housing, make affordable housing, socially equitable etc. In the same way blockchain tries remove barriers and reduce costs and puts forward democratization, can that ethos be brought to housing. It works in reality because the government did it in the 60s 70s, they just stopped the policy, allowing private developers drive the market that crashed in 2008. A decade on they are not moving to solve any situation so I believe Blockchain and DeFi at it core principles can.

Ireland's housing problem currently (and always has) is a supply shortage. The price correction in 2008, was correcting reckless lending and resulting overvaluations. The current lending restrictions top out the fluctuations (people cant over borrow) and lows recover over time (as has happened in the last 12 years). Tokenization will not impact those exposures or risks. Tokenization shares the brut of the risk as well as much more.

DeFi Apps seem to have excellent capabilities.

[Vod]

Hi BennyBennassi

Are you a licensed realtor?  If not, do you have one on your team yet?

[BennyBennassi]

Are you a licensed realtor?  If not, do you have one on your team yet?

hey, for North America nope.

[Ucy]

One of my preferred models would be to find talented developers that can build low cost housing quickly without compromising on good quality. If you could incentivize them to quickly build as many as homes as possible, that will likely drive down price especially if you encourage healthy competition among the sevelopers. Incentives could be inform of lands, equipments etc
You could create a token for that, and get them to accept it. The token can be printed and given to those who need shelter. This would work best in transparent and Blockchain-friendly manner.

[BennyBennassi]

One of my preferred models would be to find talented developers that can build low cost housing quickly without compromising on good quality. If you could incentivize them to quickly build as many as homes as possible, that will likely drive down price especially if you encourage healthy competition among the sevelopers. Incentives could be inform of lands, equipments etc
You could create a token for that, and get them to accept it. The token can be printed and given to those who need shelter. This would work best in transparent and Blockchain-friendly manner.

Yes, stages after using current available properties, would be to build and/or encourage builds, also rent to own (truly give back to the people, portion or rent allocated token of ownership to tenant). There are many layers/sections to the housing so to be effective you need to be involved in many corners.

[BennyBennassi]

Any experience or opinion of consensys.net and the Codefi Product Suite? Any suggests of alternatives.

[Theb]

If there is a problem of unaffordable housing system I don't think financing is really the main solution here. The government really needs to step up in these kinds of matter where they need to see how they can either boost the income for the ones who need it or control the rental prices which they can definitely do. But if we are strictly speaking about your propose solution makes me feel like this is an ambitious solution which you need to understand that your project must have partners first or rather people who will be ready to accept your token as a payment for their rental.

[BennyBennassi]

If there is a problem of unaffordable housing system I don't think financing is really the main solution here. The government really needs to step up in these kinds of matter where they need to see how they can either boost the income for the ones who need it or control the rental prices which they can definitely do. But if we are strictly speaking about your propose solution makes me feel like this is an ambitious solution which you need to understand that your project must have partners first or rather people who will be ready to accept your token as a payment for their rental.

Correct, is government role but government has stepped back from an interventionist role, so the tech lets the masses drive a piece of intervention (until market shifts, worst cause the hold real estate investments).

Rent by tenant would be paid in FIAT Currency as norm and rent distributed to token holders (investors) in a suitable fashion (stable coin or other, using tech efficiencies). The rent by the tenant is backed/paid by government via a rent assistance scheme.

The tenants are non the wiser of the ownership of the property. The investors are concerned of return and happy to access Real Estate investment (alternative to the traditional costs/methods).

Partners to beat the band in the old world, they don't fear property holdings.