{"id":11882,"date":"2017-09-25T01:00:39","date_gmt":"2017-09-24T17:00:39","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=11882"},"modified":"2022-07-01T04:09:30","modified_gmt":"2022-06-30T20:09:30","slug":"property-buyers-bitcoin","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/property-buyers-bitcoin\/","title":{"rendered":"Why property buyers should be interested in Bitcoin"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><img decoding=\"async\" class=\"alignnone size-full wp-image-11883\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/bitcoin.gif\" alt=\"property buyers bitcoin\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/bitcoin.gif 1280w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/09\/bitcoin-940x529.gif 940w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<p>(<a href=\"https:\/\/fortunedotcom.files.wordpress.com\/2016\/09\/bitcoin.gif\" rel=\"nofollow\">Credits<\/a>)<\/p>\n<p><span style=\"font-weight: 400;\">No, we\u2019re not telling you to buy Bitcoin. This isn\u2019t one of <\/span><i><span style=\"font-weight: 400;\">those <\/span><\/i><span style=\"font-weight: 400;\">articles. But even without investing in Bitcoin, the technology <\/span><i><span style=\"font-weight: 400;\">behind<\/span><\/i><span style=\"font-weight: 400;\"> it should interest property buyers. The emergence of<\/span><a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/us\/Documents\/financial-services\/us-fsi-rec-blockchain-in-commercial-real-estate.pdf\"> <span style=\"font-weight: 400;\">smart contracts<\/span><\/a><span style=\"font-weight: 400;\"> means buying and leasing properties can be a lot cheaper, and quicker. Here\u2019s why property investors will want to keep an eye on it:<\/span><\/p>\n<h3><b>How Bitcoin is indirectly affecting the real estate industry<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Let\u2019s be honest, the real estate industry isn\u2019t known for efficiency. While other industries are moving toward instantaneous transactions and zero paperwork, real estate is stomping around with the speed of a rubber-suit Godzilla in a 1960\u2019s movie.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why in countries like<\/span><a href=\"https:\/\/www.coindesk.com\/blockchain-land-registry-tech-gets-test-brazil\/\"> <span style=\"font-weight: 400;\">Brazil<\/span><\/a><span style=\"font-weight: 400;\">, there are already implementations of smart contracts &#8211; a digital way of handling real estate transactions that save a lot of time and money. These are powered by blockchain technology, which is famously used by Bitcoin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now this <\/span><i><span style=\"font-weight: 400;\">doesn\u2019t <\/span><\/i><span style=\"font-weight: 400;\">mean we\u2019ll all be buying and selling properties in Bitcoin. It just means the same system used to transact Bitcoin can be applied to the dollars and cents world of real estate, to cut costs.<\/span><\/p>\n<h3><b>Blockchain technology in real estate<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The main reason why real estate is so inefficient is the sheer number of intermediaries involved.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The title deeds have to be checked, the bank has to get involved in processing the handover of money, a law firm has to make sure the seller doesn\u2019t take the money and refuse to hand over the deed (or that the buyer doesn\u2019t take the deed and not hand over the money), and on, and on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With blockchain technology (or something designed along the same lines), there\u2019s a chance we may soon do away with all that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The blockchain is just a shared ledger on a computer network. Whenever a transaction is processed, all the computers record the transaction. This decentralised system makes fraud almost impossible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, say you exchange your money, for a person\u2019s resale flat. Now the deal can\u2019t strictly be between the two of you &#8211; even if you don\u2019t use a property agent, a third party, such as a law firm, bank, government body, etc. has to verify the exchange took place. Otherwise there\u2019ll be a situation if, say, the seller claims you never paid &#8211; one big reason all the paperwork and intermediaries exist is to prevent that kind of dispute.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a blockchain however, the transaction takes place over a network involving thousands of computers, all in different places with different owners. When the transaction is made, every single computer on the network will record it. For someone to cheat and change the details, they\u2019d need to break into <\/span><i><span style=\"font-weight: 400;\">every single computer<\/span><\/i><span style=\"font-weight: 400;\"> on the network.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about this way: under the current system, real estate deals are like contracts made in a private room, with just one or two witnesses. With blockchain powered smart contracts, it\u2019s like signing a real estate deal in a public area, with thousands of witnesses looking over your shoulders.<\/span><\/p>\n<h2><b>The effects we\u2019ll probably see<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s about more than just removing intermediaries. Some of the immediate changes we may see are:<\/span><\/p>\n<ol>\n<li>\n<h3><strong>Faster search-and-rent systems<\/strong><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">At present, the standard approach to renting is to brows through listings, and then contact the landlord or agent. After the viewing, they need to contact the landlord or agent <\/span><i><span style=\"font-weight: 400;\">again<\/span><\/i><span style=\"font-weight: 400;\">, and fill out a million forms. The process is a little on the slow side.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With smart contracts, the landlord can just encode the contract onto the property listings. The prospective tenant can just click on the listing, and finalise the deal from their smartphone or tablet.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This can be done from anywhere, at any time of day. That\u2019s also good news for landlords &#8211; they can wake up in the morning, and find out they got a tenant who finalised the deal last night (and the security deposit is already in the bank).<\/span><\/p>\n<ol start=\"2\">\n<li>\n<h3><b> Fewer intermediaries<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Due to the system itself providing checks and verification, some intermediaries can disappear. For example, we currently pay about $2,000 to $3,000 for conveyancing fees in Singapore. If smart contracts allow for transactions without lawyers, there\u2019s a hefty fee we can save on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even the government bodies in charge could save time &#8211; all the transactions can be verified by checking the blockchain, so there\u2019s less need for agents to sit around stamping forms and comparing documents.<\/span><\/p>\n<ol start=\"3\">\n<li>\n<h3><b> Better real world data<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">It would be easy to track transaction prices and rental rates publicly, as all the interaction is happening on the blockchain. It would be a simple matter to also display the sales figures, and volume of sales, in various neighbourhoods. Even better, this can be done in <\/span><i><span style=\"font-weight: 400;\">real time<\/span><\/i><span style=\"font-weight: 400;\">, as the transactions are actually happening.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means tenants and home buyers can have access to the same quality of information that big property firms have. People are less likely to be price-gouged, or lied to about the area\u2019s prices.<\/span><\/p>\n<h3><b>The technology is still considered new, but it\u2019s catching on fast<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Blockchain technology and smart contracts are still considered new in the real estate market, but it\u2019s catching on fast. The cost savings are too good to pass-up, and<\/span><a href=\"http:\/\/www.businessinsider.com\/heres-how-banks-can-save-big-with-blockchain-2017-1\/?IR=T\"> <span style=\"font-weight: 400;\">major banks<\/span><\/a><span style=\"font-weight: 400;\"> are likely to press for its widespread implementation (while banks are also middlemen, the technology saves them far more than it costs. In the US, for example, blockchain technology could lead to an estimated savings of US$8 billion per annum).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the meantime, you can check out the best prices on the<\/span><a href=\"http:\/\/99.co\"> <span style=\"font-weight: 400;\">99.co<\/span><\/a><span style=\"font-weight: 400;\"> map. It\u2019s the most convenient option for now.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Credits) No, we\u2019re not telling you to buy Bitcoin. This isn\u2019t one of those articles. But even without investing in Bitcoin, the technology behind it should interest property buyers. The emergence of smart contracts means buying and leasing properties can be a lot cheaper, and quicker. Here\u2019s why property investors will want to keep an&hellip;<\/p>\n","protected":false},"author":21,"featured_media":54884,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53593,57131],"tags":[],"persona":[],"class_list":{"2":"type-post","9":"entry","10":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- 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