Real Estate has been a great investment since a long time with great returns. One of the most promising assets with physical presence and growing demand. But, in this era of digitalization many investors are thinking of digital real estate investment as a good alternative to physical real estate.
Is Digital Real Estate similar to that of physical one? What are the benefits of owning such assets? How to earn profit from such investment? We will learn everything about digital real estate investment in this blog.
What is Digital Property Investment?
Any investment in real estate that is done through digitally through medium like website or apps is known as digital property investment. With growing market and high busy culture people want to get rid off all the demerits that come through buying physical real estate. These may include hustle in finding right property, avoiding disputed land or even travelling to other cities in search of finding the best one. So, to overcome these challenges, digital real estate investment has come into notice.
How to Invest in Digital Estate?
There are many ways through which investment in real estate can be done digitally. There are many platforms like Decentraland, Axie Infinity and Sandbox. Upon exploring more we can easily know the model and the work function of such platform. However, most of the platforms are based on Ethereum blockchains.
Once bought, it stores the amount in forms of tokens that is reflected in our wallet. Like, physical asset it should also be kept for a long time for the best returns.
How Valuable Is Digital Real Estate?
The prediction cannot be done similar to the physical investment as this is highly volatile, but it is expected that it certainly gives good returns over a long period of time. The returns on such investment is generally higher than that of physical assets as due to more incoming investment and hence assets under management increases. Platform, Sandbox stated that it has recorded returns of more than 300% over the period of 4 years that is considered very good investment in terms of ROI.
All investment go through ups and downs but over time it shows the upward trend. Volatility in such market is very high and hence it cannot be considered as fixed returns compared to the traditional investment like fixed deposits or bank bonds.
How To Earn Profit from Digital Real Estate?
There are many ways to earn profit from Digital Real Estate. We will discuss few of them to make a clear understanding of how one can benefit from this
Build online business
One can build a website or a blog and later monetize it. The benefit of such website or blog is that we can get good amount for the inventory in our blogs. The affiliate partner pays huge amount for the inventory present. Also, it is best to get some program from same niche.
Buy Land in Digital Form
There are many startups who works primarily on letting investors buy virtual land space. This helps investors to look the past returns and also makes it easy to invest according to their budget. There is transparency in terms of pricing and allows investors to learn more about locality and benefits.
Social Media is getting lot of attention these days. There are many influencer nowadays who invest lot of time investing in social space. Picking up a niche and working consistently on it creates a digital space. There are a lot of companies who invest in such influencer for promoting their products.
Advertisement is the best form of earning through digital real estate. Companies pay blog owners to create engaging content on their product. Also, bloggers earn affiliate commission through sale that goes through the link.
Cryptocurrency and NFTs
Cryptocurrency has witnessed immense growth since past few years. The end-to-end encrypted form of transaction that allows users to transact using blockchain is latest acceptable technology these days. Lot of companies has already started it to adopt it as currency same as that of physical one. With the passing time, more audience will accept this form of payment in the form of digital currency that will also help investors to accumulate and grow their digital real estate.
Best Websites for Buying Digital Real Estate
As mentioned, the most common platforms that can be used to buy digital real estate are The Sandbox (uses SAND tokens), Decentraland (uses MANA) and Axie (uses AXIE INFINITY). With growing technology and digitalization more platforms would certainly develop that would benefit investor and help them learn and earn more.
Should we do Digital Real Estate Investing?
Investing in any form always helps to grow wealth over a period of time. Digital Real Estate Investing is new but has witnessed great growth these days due to promising returns and easy accessibility.
Is Digital Real Estate Investing Safe?
High demand is created these days for investing and hence digital real estate investing has come into role. Although, it has not been much time but these investing has satisfied investors and is getting wide acceptance across the world.
Should I buy land in Metaverse?
Buying anything digitally is always a personal choice. Although, it does not sometimes create emotional attachment as that with physical land but nowadays recent studies has shown that metaverse is the world most people aspire to live in. People can transact through crypto to buy such place.
While digital real estate seems to offer lot of benefits, but there are lot of limitations that are associated with it. Not everyone has technology or learning to invest in digital space. Also, the trust factor is questionable as this is new for everyone. The prediction is not possible due to high volatility and lack of regulations which questions the security and safety of digital real estate transactions.
But with this, there are many merits of Digital Real Estate Investing, foremost being lower transaction cost, high transparency and high exposure to global markets. It also allows freedom to invest from any part of the world.