ATO - A New Era of Real Estate Market

Real estate market — A market that created the most wealth legends — attracts investors all over the world. According to Knight Frank globa...

Real estate market — A market that created the most wealth legends — attracts investors all over the world. According to Knight Frank global house price index report for Q4 2017, House prices increased in 85% of the countries tracked in 2017. And the Knight Frank Global House Price Index increased by 4.6% in 2017. The house price index is increasing steadily with the recovery of global economy. Japan, for example, 2017 is the fifth consecutive year of increasing house prices. Although the real estate market keeps its prosperity, most people actually suffer from it. How come that even happen?

We have to go back to two major problems existing in real estate market:

High minimum investments.

If you don’t have hundreds of thousands (or even millions) of dollars at hands, you cannot enter commercial real estate markets. You have to at least put down enough money to purchase a land and start to build on it. Mortgage is an option but it comes with risks too. Mortgage rate is also rising year by year and not everyone even has the access to mortgage at all.

Real estate market is like in a status of “monopoly” by big corporations and capitals. Most common people suffer from it since they have to work really hard to buy a house with a mortgage from real estate developers.

Long lock-up periods.

Another problem is that real estate investment has long lock-up periods. As what I said above, you have to put down a huge amount of money at the very beginning and cannot enjoy its rewards until the constructions are done completely. It can take years in most cases.

Low liquidity can cause huge hassles. What if you need money in an emergency during the construction of your properties? Selling a house under construction has to go through a whole bunch of legal processes and may even cost loses on your investment. That’s another reason that the common people will not choose to invest in real estate even they see this prosperous market.

ATO

ATO — Asset Tokenize Offering — brings the best solution with blockchain technologies. ATO is an idea to “fractionalize” commercial real estate properties. Most people can buy a share of ATO and has a partial use right of that property no matter who you are and where you are from. Real estate market is not controlled by big corporations only anymore and it opens the investment door to everyone like you and me. Thanks to ATO, we can enjoy the wealth that real estate will bring to us now.

ATO also resolves the second big issue — liquidity. I-house platform not only issues ATOs but also plans to build a real estate ecosystem. The growth of new technology infrastructure platforms like Blockchain could help alleviate fears and facilitate exchange. I-house platform uses the latest blockchain technology to make ATO transactions more transparent and secure.

People can even trade ATO shares after purchases now. You are able to buy a share of ATO at a huge discount at an early stage. During the construction of houses, you can choose to hold your ATO shares and enjoy the benefits they will bring to you or simply sell those shares if you need money in a short period. Flexibility and liquidity will help ATO to attract much more investors all over the world. And I-house platform, in another word can be called like “ATO exchanges”, will help people to achieve the dream of real estate investment.

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