He is not a full man who does not own a piece of land.
– Hebrew Proverb –
Humanity has always put great value on the land where they keep their footing; their stake in the world. This is the reason why we people desire to own our own homes, why we pity the homeless and why we admire those who were able to build great fortunes for themselves on Earth with their real estate investments. Throughout history, from the age of kings to this digital age, ownership of real estate meant stability and material success. PEOPLE JUST LOVE LAND.
Truly real estate is an integral part of human life as it serves different needs for different people. Real estate is our home, place of work, health, services and recreation. For some, it is a repository of life savings, a defense against poverty, a retirement plan, a legacy that we can leave to our children, as well as a collateral that we can use to raise funds. In other words, EVERYBODY NEEDS REAL ESTATE.
For people with financial capacity, real estate is an investment of choice simply because it is a rewarding source of income and capital growth. As more people grow wealthier and seek homes and investment vehicles, real estate has become an increasingly important global asset class, if not the largest asset class.
Global real estate values totaled $217 trillion, according to a study done by the Savills World Research team in early 2016. As an asset, it is very tangible and its real value is easy to understand and appreciate. These qualities also give it the property of having stable prices over time. The average annual growth for all global real estate is at around 5%. It is an asset class that is considered as always increasing. As an investment it adheres to two important criteria described by The Father of Modern Value Investing and mentor to Warren Buffet, Benjamin Graham: 1) safety of principal and 2) a satisfactory return.
For all that is good with real estate, it is not a perfect asset. As a means of exchange, it is illiquid. Land is difficult to partition and impossible to carry in your pocket. Transactions involving it are laden with cumbersome processes and intermediaries and exposure to risk of fraud. All these make it accessible only to those with time and money at their disposal. For ages past, family feuds and wars over nations have been fought over complications with land. From the age of old kingdoms to modern democracies, human societies have advanced culturally, technologically and financially. We have dared to cross the vastness of space to put man on the moon and beyond. Are we to believe that on the real estate space, we still have our feet stuck on the ground?
We at ReHatch, the team behind the Recvo.io, beg to differ.
Revco.io aims to put applications of blockchain technology to eliminate the worst of real estate problems. “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”, according to Don & Alex Tapscott, authors Blockchain Revolution (2016). Transactions within the blockchain are digitally signed to ensure its authenticity and no alterations from others are allowed, this makes for a high integrity ledger. The entries in this ledger are distributed across an infrastructure composed of different nodes and layers which serve the purpose of providing “proof” or consensus amongst themselves of the state of a transaction at any given point in time. Imagine a ledger distributed among all of us at all times that we all have access to verify the validity of transactions.
If you want to join the revolution in real estate, we invite you to follow the journey in of ReHatch and Revco.io.