Reliable investments are said to be “as safe as houses”. Many see real estate as the ultimate safe investment: tied to a physical asset and delivering an assured profit. While this reputation may be somewhat overstated, there is no denying that it is both a useful way to diversify your portfolio and a usually solid source of passive income. However, the industry's low liquidity and high opacity can be discouraging to new investors. To put it another way, you often don't know just how good the property you are investing in really is, which is especially problematic when both entering and leaving the investment requires so much effort.
Dominium BV is a startup created by real estate veterans to fix the industry using the advantages offered by blockchain technology. Its dedicated platform will bring together investors and real estate stakeholders in conditions of greater transparency and reliability. Dominium will ensure compliance with all necessary regulations through a complex registration process and by providing standardised documentation for different jurisdictions.
What could you do with Dominium?
To register on the platform, a potential investor will have to provide information such as contact details, personal ID and financial information. Those verification requirements and the available platform functionality will depend on the clearance level, the third and the highest of which will require some certification of investor or high-net-worth status. Companies will have their own registration requirements, including contact details and the certificate of incorporation. With that being done, companies that have the required licenses will be empowered to create tokens tied to their real estate assets, including property funds, bonds, loan notes or project finances. Those assets will be added to Dominium's Ardor child chain with the help of standard, up-to-date, local regulations-compliant multilingual document templates provided by the platform's regional legal experts. Registered investors would be able to purchase and trade those assets on the platform.
In addition to real estate asset trading, Dominium will also support the management of individual properties. Managers, tenants and agents will be able to record information about their properties on its blockchain. They could use it to communicate, manage tasks, schedule repairs and keep up a maintenance log. This data could then be provided to others interested in the property. All transactions on the platform will be made using separate DOM tokens (though platform fees will be charged in Euro, the payment will still be done with DOM). Dominium will have a buyback and burn program for these tokens.
What makes Dominium so promising?
Dominium extends the blockchain advantages of transparency and immutability to the real estate market, which should let people rest easier when investing in assets on the platform. It also lowers investment barriers (to a minimum of 1 Euro) and allows investors and real estate professionals to bypass intermediaries such as fund managers. By providing documentation adapted to the needs of businesses in different countries, Dominium works towards attaining a global reach. This KYC and AML assistance should also save companies a lot of time and effort.
Two established real estate companies – Munte Immobilien and Max Property Group – have joined forces to create Dominium. Their teams' expertise and connections should help draw other businesses to this project, and the companies themselves will put their current property assets and investors on the platform from the start. Several partners have already decided to back it, including Confidon, which has agreed to act as a supervising company. A beta version of the Dominium platform has already been developed with the companies' own funds.
Token sale details
Money from the DOM pre-sale will go towards restructuring the participating companies, with the remainder being invested in leveraged property assets to cover the costs of maintenance. At least 80% of the proceeds from the main sale will be used to purchase more such assets in the Netherlands, Germany and the United Kingdom. The rest of them will be used to add more features to the platform or upgrade existing ones.
A comprehensive real estate blockchain solution
Dominium attempts to tackle the liquidity and opacity issues of its market in one go while creating a new and streamlined real estate investment method. Real estate interests many, and this will make investing in it more accessible and reliable. That is essential for the real estate market to continue its growth, and especially important in the light of recent doubts undermining its reputation.
The founding companies' willingness to put their own assets on the platform is an important early step. If more real estate businesses become convinced of this method's advantages, it should have a bright future ahead of it. Finding investors within the cryptocurrency community who would be willing to give real estate investment on better terms a try ought not to be too difficult, especially given the positive buzz Dominium has attracted.
Links:
Website: https://dominium.me/
WhitePaper: https://bit.ly/2N5xsCx
Telegram: https://t.me/joinchat/AAAAAEVqyQIsmfBX8js3bw
Facebook: https://www.facebook.com/Dominium.me/
Twitter: https://twitter.com/Dominium_me
Medium: https://medium.com/dominium
ANN: https://bitcointalk.org/index.php?topic=3903453.0
Author: https://bitcointalk.org/index.php?action=profile;u=980049
Disclaimer
This review by Bonanza Kreep is all opinion and analysis, not investment advice.
Intresting article @bonanza-kreep
Thanks for your interest.