HiP aims to make real estate more accessible and affordable to consumers and investors by turning equity and debt within a property into a tradable, interactive asset. Through fractional ownership, the consumers are able to access equity they may not have been able to access previously and investors can diversify their property portfolio.
When consumers hear the words fractional property ownership, most will likely think to Timeshare scams and shared ownership of a villa in the south of France with 30 other people. But thanks to blockchain and tokenisation, HiPs solution to fractional property ownership now means that you can buy the house of your dreams with the help of crowdfunding property investors looking to diversify their property portfolio.
Releasing Property Equity
Fractionalisation by tokenisation will benefit the property market in numerous ways as it will enable unlocking currently tied up property wealth that owners are sitting on without selling their property or buying into equity release, refinance or bridge loaning products, all of which penalise them unfairly by contracting them into increased interest payments or even compound interest loans in case of equity release.
Tokenisation will therefore allow buyers and property owners to work with investors rather than relying on banks. Funds are easier to acquire and more accessible and thanks to blockchain technology, approval periods are quicker and streamlined which benefits both parties. Through tokenisation investors will be able to diversify their property portfolio by investing in properties all over the country, spreading the risk of their investments and allowing for a wider variety of assets.
Millennial Fractional Property Ownership
Millennials looks to benefit from the fractionalisation of property the most due to increasing house prices that leave many thinking that they can’t get on the property market.
HiP benefits buyers as they can bring the house they want to purchase to the platform and finance its purchase through investors looking to diversify and increase their property portfolio. The HiP platform will allow property owners to control their debt levels by choosing how much equity they are willing to purchase at first with the ability to increase or sell further equity as they go along.