Introduction
The real estate industry has long been known for its cumbersome, time-consuming, and paperwork-heavy processes.
These traditional stumbling blocks, along with a high cost entry point, have been a barrier for many people to enter the property market, especially for younger generations. However, with the advent of blockchain technology, it has become possible to create a new paradigm for property ownership and investment.
Sway Estates is the marketplace that offers a solution to these problems by providing a fully digital end-to-end property marketplace. This white paper will explore the Sway Estates platform and how it offers a revolutionary new way for people to own, and trade, in property.
The Problem with Traditional Property Ownership
Traditional property ownership has always been associated with high costs and complexity. It often requires substantial capital to acquire a property and significant paperwork to complete a transaction. Furthermore, managing and maintaining properties is often expensive and time-consuming. These challenges often limit the pool of people who can participate in the property market, especially young people who have limited financial resources.
The current property market is also subject to local and national economic conditions, which can lead to fluctuations in the value of properties. This volatility can make it difficult to plan and invest for the long-term.
The Solution: Sway Estates
Sway Estates has created the world’s first fully digital end-to-end property marketplace, known as Sway Estates. At Sway Estates, members of the marketplace can buy NFTs representing fractional shares of a range of properties. The platform offers fractional ownership, which means that the property is divided into equal parts, or up to 1,000 equal parts, depending on the asset’s overall value. For instance, a €100,000 house may offer ten NFTs for sale at €10,000 each.
The use of blockchain technology allows for transparent, secure, and tamper-proof ownership of the property. Members of the Sway Estates marketplace can buy and sell NFTs in a matter of minutes, without the need for extensive paperwork or intermediaries. This process opens up the property market to a broader audience, including young people who may not have the capital to purchase a property outright.
Why use NFTs to Record Property Ownership?
Cardano NFTs can offer a more secure and efficient way to record property ownership than traditional land registry methods.
Properties at Sway Estatesare represented by NFTs on the Cardano blockchain, which are created natively on the platform and, unlike most other blockchains, do not require smart contracts to operate.
When an NFT is minted on Cardano, it is done so using a specific policy ID, which binds the NFT to the rules set by that policy, ensuring that it behaves according to its intended purpose. The policy ID also serves as a unique identifier for that particular type of token, allowing anyone to verify the authenticity and ownership of the NFT.
As each property on the Sway Estates platform is represented by an NFT collection with a unique policy and policy ID, when the fractionalisation of the property is complete (for example 100 “pieces” of a property with an initial sale price of £1000 each are created, for a £100,000 house), the policy is irreversibly locked to protect the value of the asset. This prevents additional NFTs from being created, diluting the value, or changing the details of the property, such as the land registry number, address, and physical details such as floor area.
The policy ID of each unique property is shown in the listing on the marketplace and can be independently verified online prior to purchase, adding even greater security for the buyer.
The transparency of blockchain enables anyone to check the policy and amount of NFTs minted for each property, including transaction and owner history. This can be very helpful in seeing any income that the NFT has previously distributed, perhaps as a result of rental income received for a property.
The use of NFTs for property transactions provides a transparent and immutable record of ownership and history. Each time an NFT is created, transferred, or sold, a new record is added to the blockchain that contains information about the transaction, including the sender and the recipient. This information is permanently recorded on the blockchain and cannot be altered, preventing issues such as fraud, money laundering, tax avoidance, and marital property disputes.
Ownership Structure
The properties on Sway Estates are all owned outright by the holders of the NFTs in each group. The legal structure for ownership is a Protected Cell Corporation (PCC) in the Isle of Man. The PCC is a licensed and regulated entity that allows for the division of assets into separate “cells.” Each cell has its assets and liabilities, allowing for a secure and straightforward fractional ownership structure.
The use of the PCC legal structure ensures that the assets in each cell are ring-fenced from each other, minimizing the risk of cross-contamination. This ring-fencing provides additional protection for Sway Estates members’ assets in the unlikely event of bankruptcy or insolvency of the PCC.
Property Management
Sway Estates uses independent property management companies to maintain and administer the properties for each group of members who own a single property. These companies are responsible for the day-to-day management of the property, including maintenance and repairs. Rental income from the properties is paid quarterly to the members’ digital wallets, after the deduction of property maintenance and management fees.
The use of independent property management companies ensures that the properties are managed professionally and efficiently, reducing the burden on Sway Estates members. Additionally, the rental income provides a regular income stream for Sway Estates members, creating a steady return on investment.
A Sway Estates Advantage
The Sway Estates platform offers several benefits over traditional property ownership and investment:
1. Fractional ownership: Sway Estates allows for fractional ownership of properties, making it more accessible to a broader audience, including young people who may not have the capital to purchase a property outright.
2. Reduced costs: The use of blockchain technology reduces the costs associated with traditional property
The world of property investment is changing rapidly, with the emergence of new technologies and innovative business models.
One of the most exciting developments in recent years is the advent of NFTs (Non-Fungible Tokens), which are digital assets that can represent ownership of virtually anything, including real estate.
Sway Estates has created the world’s first fully digital end-to-end property marketplace called Sway Estates, which enables users to buy and sell fractionalized pieces of property represented by NFTs.
This white paper will provide an in-depth overview of Sway Estates, including its features, benefits, and potential impact on the real estate industry.
Why choose Sway Estates for Real Estate Investment?
Sway Estates is the marketplace that enables users to buy and sell fractionalized pieces of real estate represented by NFTs.
Each NFT represents a specific percentage of ownership in a property, which can be as little as 1% or as much as 100%. For example, if a property is valued at €100,000, it can be divided into 10 NFTs, each valued at €10,000. The number of NFTs that can be created for a property depends on its overall value.
The properties on Sway Estates are managed by independent property management companies, which are responsible for maintaining and administering the properties on behalf of the NFT holders.
Rental income from the properties is paid quarterly to the NFT holders’ digital wallets, after the deduction of property maintenance and management fees. This ensures that NFT holders receive a steady stream of income from their investment in the property.
One of the key advantages of Sway Estates is that it enables users to invest in real estate with a relatively small amount of capital. By buying a fractionalized piece of a property, users can gain exposure to the real estate market without having to buy an entire property. This makes real estate investment more accessible to a wider range of people, including those who may not have sufficient funds to invest in a property outright.
Sway Estates also offers several other benefits to users, including transparency, liquidity, and security. Because NFTs are digital assets, they can be easily tracked and verified on the blockchain, which provides a high degree of transparency. Additionally, because NFTs are tradable, they offer greater liquidity than traditional real estate investments, which can take months to buy or sell. Finally, because NFTs are secured on the blockchain, they are highly secure and resistant to fraud and theft.
The Sway Estates Marketplace
The Sway Estates marketplace is designed to be user-friendly and accessible to anyone who wants to buy or sell NFTs representing real estate. The marketplace features a wide range of properties from around the world, with varying values and investment opportunities. Users can browse the marketplace and select properties that match their investment goals and budget.
Once a user has selected a property, they can purchase a fractionalized piece of the property by buying an NFT on the marketplace.
The price of each NFT is determined by the overall value of the property and the number of NFTs that have been created for it. Users can purchase NFTs using fiat currency or cryptocurrency, depending on their preference.
Once a user has purchased an NFT, they become a part owner of the property represented by the NFT. They are entitled to a percentage of the rental income generated by the property, which is paid out quarterly to their digital wallet. They can also sell their NFT on the marketplace at any time, enabling them to liquidate their investment quickly and easily.
The Sway Estates marketplace is highly secure and reliable, with advanced security features and protocols in place to protect users’ investments. The marketplace is built on the blockchain, which ensures that all transactions are transparent and immutable.
Additionally, the marketplace is protected by advanced security measures, including multi-factor authentication, encryption, and regular security audits. This ensures that users’ personal information and investments are kept safe and secure at all times.
Sway Estates Benefits
Sway Estates offers several key benefits to users, including:
1. Accessibility: Sway Estates makes real estate investment more accessible to a wider range of people, including those who may not have sufficient funds to invest in a property outright. By buying a fractionalized piece of a property, users can gain exposure to the real estate market with a relatively small amount of capital.
2. Liquidity: Sway Estates enables users to buy and sell fractionalized pieces of real estate quickly and easily, providing greater liquidity than traditional real estate investments. This makes it easier for users to liquidate their investments and access their funds when they need them.
3. Transparency: Because NFTs are digital assets that are tracked on the blockchain, they offer a high degree of transparency. Users can easily track the ownership and transaction history of their NFTs, ensuring that they have a clear understanding of their investment.
4. Security: Sway Estates is built on the blockchain, which provides advanced security features and protocols that protect users’ investments from fraud and theft. Additionally, the marketplace is protected by advanced security measures, including multi-factor authentication, encryption, and regular security audits.
5. Diversification: Sway Estates enables users to diversify their real estate investments by investing in a range of properties from around the world. This helps to spread risk and can potentially provide higher returns on investment.
The Potential Impact of Sway Estates on the Real Estate Industry
Sway Estates has the potential to revolutionize the real estate industry by making real estate investment more accessible, liquid, and secure. By fractionalizing real estate ownership and representing it as NFTs, Sway Estates can open up real estate investment to a wider range of people, including those who may not have the funds to invest in a property outright. This can potentially drive greater investment in the real estate market, leading to higher property values and increased economic activity.
Sway Estates can also provide greater liquidity in the real estate market by enabling users to buy and sell fractionalized pieces of real estate quickly and easily. This can potentially reduce the amount of time it takes to buy or sell a property, leading to a more dynamic and efficient real estate market.
Finally, Sway Estates can provide greater security to real estate investors by leveraging the advanced security features and protocols of the blockchain. By using NFTs to represent real estate ownership, Sway Estates can provide greater transparency and immutability to real estate transactions, reducing the risk of fraud and theft.
Conclusion
Sway Estates represents a significant innovation in the real estate industry, enabling users to buy and sell fractionalized pieces of real estate represented by NFTs.
By providing greater accessibility, liquidity, transparency, and security to real estate investments, Sway Estates has the potential to revolutionize the way that people invest in real estate.
With its advanced security features, user-friendly marketplace, and experienced management team, Sway Estates is poised to become a leader in the emerging market for NFT-based real estate investments.