How To Invest In The Global Real Estate Market

An Opinion Article By Kodo Assets


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Investing in the global real estate market may seem like a utopia, as we know that when it comes to investing in the traditional financial market, several rules need to be followed.


In this sense, thousands of people around the world are discouraged from going beyond the political borders of their countries, either because it is difficult or because it is costly to make an investment of this nature.


However, with technological evolution, in this case we are talking about blockchain, this desire is again a reality for investors. Keep reading and we’ll tell you how to do it.


However, thanks to blockchain technology, this dream has become true for investors. Keep reading and we’ll tell you how to do it.


Investing in real estate through the financial market

Currently, the average citizen, who does not have enormous wealth, manages to build his investment portfolio with a relatively low entry value. However, another problem arises: how to know where to invest your money.


For those looking for safe investments, but at the same time would like to be exposed to the volatility of stocks, investing in real estate can be a way out. Just remembering that this text is not an investment recommendation.


The reference for the world real estate market are the REITs, as they are called in the American market. They are nothing more than companies, which acquire corporate real estate and manage it.


However, for them to be able to acquire these properties, they open the so-called investment quotas to investors who are interested in participating. And as a reward to quota buyers, monthly amounts are made available, such as an amount paid for rent, called earnings.


Another example we have is in Brazil, the so-called Real Estate Funds (FIIs) that are very prominent among investors in the country. The method of remuneration is the same as for REITs, you monitor the possibility of appreciation of the fund’s share and also receive monthly earnings.


The Brazilian real estate market

Brazil’s outlook on the real estate market is promising. The recent resumption of in loco work, after the global pandemic, has heated up business demand for real estate in this sector.


São Paulo is one of the largest global financial and business hubs, thousands of national and multinational companies are located in the city. However, what makes it extremely attractive to investors is the value of the square meter of real estate which, compared to other world capitals, has a much lower value.


But what does all this mean? Bearing in mind expanding your investments to real estate opportunities in the city of São Paulo can bring interesting returns. However, we return to border barriers.


How to invest in this tropical country, full of potential, if I’m located thousands of kilometers away and I don’t have R$ (Reais) or concrete connections with Brazil?


At this point, the assets’ tokenization can solve the issue.


Kodo Assets

Tokenized assets are the future of the world real estate market, integrating blockchain into one of the most traditional markets in the world. Bringing that future into the present, starting with Brazil, Kodo Assets opens the door to global investment.


São Paulo is the cradle of money in Brazil, therefore, positioning yourself in advance in this location is fundamental, as mentioned by Emilio Fugazza in an interview. From this, it is possible for the common investor, from any part of the world, to invest in the Brazilian real estate market.


With smart contracts taking over, the cost of maintaining a project like Kodo Assets’ is plausibly decreasing. This new arrangement facilitates the acquisition of security tokens, which are the equivalent of an FII share.


Finally, in the Brazilian real estate scenario, this project is the first to take this initiative, therefore, it is of great importance to research and learn more about it. Analyzing a project before investing is essential.


That’s why we provide here more information about Kodo Assets and its first release, KODO1, which will be launched in the second half of December 2022.


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