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The dream of assets ownership has become rapidly unattainable for the average earner, especially in Europe. While capital-rich investors buy many properties, increase housing prices, many potential buyers are priced out of the market, making homeowners a special privilege for rich people.
This issue has become so serious for the common people that it is now causing a democratic backlash in major European countries. For example, Spain’s Prime Minister Pedro Sanchhez is suggested 100 percent tax on a citizen of any non-European Union who bought a house in Spain. This is due to disappointment on foreign investors monopoly in the Spanish property market.
While the problem is continental-wide, Spain has faced a unique-scale habitat inequality. Speaking to an economic platform in Madrid, Prime Minister mentioned How the social residence is only 2.5 percent of the Spain market, which falls significantly below other major European Union countries, such as 14 percent in France and 34 percent in the Netherlands.
In addition, the Spanish coalition government plans to accelerate the construction of new houses. Bank of Spain is Said By the end of 2025 600,000 new homes are required but only 90,000 units are being built annually. According to Mr. Sanchez, an essential reference to consider is that people outside the European Union, when bought 27,000 houses in Spain, including post-breaks.
The proposal to introduce a 100 percent tax, approximately, created disagreement among many non-European Union investors, such as Britain, who feel that the Spanish government is wrongly targeting them. There are internal formulas of industries like Blackatover Financial Management Group Wags That property levy can only discourage investment in the country without solving the root problem of housing strength and reduction in supply.
Current obstacles for property investment
There are already significant obstacles for international investors, including notary fees, potential language barriers and strict requirements for local financing. Therefore, strict regulation of foreign investment alone cannot effectively address this versatile issue.
Investing in new digital tools that increase property investment and democrats are a possible long -term solution for government and industry leaders for the cheapness of European property.
One of these new devices is tokennail, which is the process of changing a real -world property, such as in real estate, digital tokens, which can be track, transferred or traded on blockchain. Each token represents a fraction of ownership in the property, which makes it easier to divide, stores and exchange digitally. In the physical world, assets are converted into digital tokens and transferred or traded to blockchain such as atherium (ath) or solana (soul). These tokens serve as evidence of the ownership of real -world property.
Tokens and property asset management
The token of real estate can provide a fresh, innovative approach to Europe’s property ownership crisis. In particular, it promises to deal with the lack of housing and enable wide access to the ownership of the property.
Currently, to invest in property start-ups or real estate investment funds, one needs to be either a recognized investor or they have an initial large amount of capital, which are accessible to those with access to property ladder Seriously limits.
Using blockchain technology, Tokenization affects the installed paradigm. Instead, a property can be converted into a digital token representing a fraction of legal ownership. With calibration, the property of the token property is divided into small stocks that enable all investors, whether the size of their portfolio does not matter, to exposure to immovable property.
One of the immediate benefits of tokens in the real estate market is that it causes liquidity to make the investment accessible and flexible for almost any with a laptop or mobile device. By enabling property investors to traditionally buy a portion of an asset, instead of going through the tedious and bureaucratic process of purchasing a property, tokrification negates the requirement to investors to carry forward significant deposits. It completes two things: First, it immediately provides a piece of property for local and global investors. Secondly, it enables more investors to come into contact with each property.
Toknification also opens assets for a global pool of investors. Since the property is divided into several tokens that represent a fraction of each property, investors can buy or sell tokens on an exchange that is accessible to global players. With tokening, complications such as government rules, cumbersome paperwork, and other localized discomfort become almost nothing, removing great difficulties in facing international investors in buying local property.
However, instead of continuing local investors, the tokens together to open access to those without existing large amounts, as well as reduce the obstacles to enter the revenue from international investors to generate obstacles to generate further revenue from international investors. For.
Effect on fraud and misconduct
Tokenings offer a streamlined route for all investors, whether they have low -risk hunger or small portfolio, they have property opportunity, even if it has only pieces. Since tokens are made on platforms blockchain laser, all tokens are managed by the real -world assets, which facilitates how the transactions and bookkeeping are managed. Real estate contracts are kept on-chains, but remain separate.
In addition, through increased transparency and security of blockchain, each transaction or ownership transfer is recorded and cannot be converted, reducing the risk of fraud or corruption. This, in turn, creates confidence among investors who can traditionally hesitate to enter opaque real estate market. With more people relying on the system, it encourages market stability and access to local and global investors.
A modern solution of a heritage problem
Given that the issues facing property market are multidimensional and are not limited to the domination of foreign investors in the market, taking advantage of these new forms of investment can open the way for the ownership of the property that does not come. Concern to separate possible fiscal injections in the country or encourage capital flight.
European countries trying to support more local citizens to invest more local citizens to invest in property should remove obstacles and obstacles that make it difficult for small investors to compete with more established global buyers with large wallets . Instead of imposing taxes on rich foreign investors, which will only create mistrust and remove investment, European governments and real estate agents can embrace blockchain technology by tokening parts of a property on the market, immovable property Small and more divided into more economical pieces, which are available to all. By doing this, now at every investor, both home and abroad, there is a chance to benefit from appreciation in their property markets as well.
