The New York City real estate market is one of the most exclusive investment opportunities in the world. The New York Real Estate Fund (NYREF) has decided that everyone should be able to get a slice, or at least a token, of the market, even if they don’t have $1 million to invest.
NYREF has made this a possibility by tokenizing a property valued at $18 million in one of the city’s most valued neighborhoods. The property is being traded on the Avalanche blockchain in the form of 18,000 tokens, of which 14,400 are for sale at a starting price of $1,000. Every token is a recognized certificate of ownership, and the holder can expect to receive rental income and profits following sales.
Fractional ownership, enabled by tokenization, allows multiple investors to own a share of an asset, such as a property. This is achieved by dividing ownership into smaller units, making it more affordable and accessible.
This approach solves typical luxury real estate market issues, such as high entry barriers and limited liquidity. By dividing ownership into smaller fractions, it allows a wider range of investors to participate and benefit from potential appreciation and rental income.
The NYREF tokenization venture has changed the property game for good. Now, anyone can become a property investor in New York City.
New York City: One Of The World’s Most Appealing Real Estate Markets
According to Redfin, the median property sale price in New York is just above $800,000. This is an astounding figure and is a testament to the value that property in this market holds. While the constant increase in property prices is great for existing investors and property owners, it has isolated newcomers to the market, especially those who lack the ability to invest massive sums of money.
This high barrier to entry has made the market inaccessible to many, preventing them from participating in the potential gains and benefits of real estate investment. It has also created a significant wealth gap, as those with existing property ownership continue to benefit from rising prices while others are left behind.
Furthermore, this exclusivity has led to poor liquidity in the market. With fewer buyers able to afford properties, it becomes more difficult for sellers to find suitable purchasers. This can lead to longer transaction times and a less efficient market overall.
Despite these challenges, there is high demand among investors to gain exposure to the New York City real estate market. Its reputation for stability, growth, and desirability makes it an attractive investment opportunity. However, most people simply can’t afford to add New York City real estate to their portfolios. Or at least couldn’t until now.
Real Estate In New York City Made Accessible
NYREF has turned the New York City real estate market into a highly accessible and liquid investment venture. This is a turning point for how investors diversify their portfolios into real estate. No longer is this market, which has historically been one of the most stable and profitable, off-limits to the majority of people.
Tokenization involves dividing ownership of an asset, such as a property, into digital tokens on a blockchain. Each token represents a fraction of the asset’s ownership, making it possible to buy and sell smaller, more affordable units. This process democratizes access to high-value assets like real estate, allowing a wider range of investors to participate.
NYREF’s first tokenized property, 3187 Grand Concourse, LLC, is a modern multi-family building in the Bronx’s Bedford Park neighborhood. It features 32 residential units and offers residents spacious living areas, ample natural light, and convenient access to transportation and amenities.
The property generates rental income through a lease agreement with the US Government, providing a secure and reliable income stream for token holders. The property generates a 5.52% annual return for token holders, with a minimum 3% yearly increase.
Last year, rental prices increased by 13.2%, demonstrating the potential for strong income growth. For example, a $10,000 investment could initially yield $552 in annual rental income.
When the property is eventually sold, token holders will receive a share of the profits proportionate to their ownership. The NYREF marketplace allows investors to buy these tokens with ease, using cryptocurrencies like USTD, USDC, AVAX, and ETH. To get started, simply create an account on the platform, complete the KYC process, and make your purchase.
Join the Real Estate Revolution
NYREF Website: https://nyref.io/
NYREF Marketplace: https://marketplace.nyref.io/auth/sign-in
Telegram: https://t.me/NyrefPortal
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