Brik by Brik launches BRIKN, the property investment ecosystem
By Joy Dumasia
Brik by Brik has announced the launch of Brikn, its DAO ecosystem on the blockchain that rewards holders of the token from the revenue the company generates from its soon-to-be vast property portfolio. The company is targeting a property portfolio of £50m within the next five years.
Brik by Brik Director Mark Goodman said: “Investing in real estate has for a long time been one the world’s favourite tools to achieve financial freedom. Now, with blockchain technology, we’re making cryptocurrency real estate investments easier and more accessible to everyone. Imagine being able to have fractional ownership of multiple income-generating properties from an investment as low as $500. This is next generation property investment powered through blockchain.”
Crypto real estate investing is the process of tokenizing real-world properties and offering them as fractional property-backed crypto investments to investors. In other words, a real estate property is purchased through fiat via the sale of the token and investment received, and the token represents a percentage of the property portfolio. BRIKN is looking to reward owners of the BRIKN token with a percentage of the entire property ecosystem. Tokens are linked to the properties using smart contracts that execute rent payments and distribution to investors of tokens automatically through the BRIKN Vault staking platform.
By allowing fractional ownership of the ecosystem’s rewards, blockchain lowers the barriers to investing in real estate. The traditional real estate investment process presents several hurdles to potential investors. For example, to purchase a rental property, a prospective investor will often require a mortgage, in effect, eating into the property’s bottom line. The investor must also take care of managing tenants, upkeep, paying taxes on the property, and ensuring compliance with the law. Real estate has long been viewed as an illiquid asset because it takes time for purchases to conclude. This is not the case with tokens, which can be bought and sold in a matter of seconds. And unlike real estate investment trusts (REITS), the advantages of tokenization include the ability to invest in a single property rather than a fund, voting and governance rights over the property, more frequent payouts, lower overheads, fewer management fees and a lower minimum investment.
Headquartered in the UK, Brik by Brik is a national multi-sector property developer with the main focus on Below Market Value properties that deliver high rental yields. Working closely with its partners, ranging from well-known property sourcing companies and investment houses to solicitors, agents and auction houses, Brik by Brik delivers exceptional quality development and investment projects across residential and commercial property sectors throughout the UK for both private and public sector customers, diversifying risk for investors and token holders.
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