📚Introduction
Last updated
Last updated
Fractit empowers you to own a fraction of real estate property with our native digital assets (tokens), called "Fractibles" - ERC-404 based tokens that are fully backed by real world assets. Fractit is making global real estate accessible & liquid by bringing it fully on-chain. Fractible holders earn rental income on their properties and can use them to access liquidity or earn yield with DeFi.
Traditional real estate investment presents several significant challenges for potential investors, particularly those with limited financial resources or geographical constraints. These challenges include:
High Capital Requirements: Owning even a modest property often requires a substantial down payment. This high initial investment excludes a significant portion of the population from participating in the real estate market, hindering wealth creation through this avenue.
Lack of Liquidity: Traditional real estate is characterized by low liquidity. Selling a property typically involves lengthy processes, including marketing, negotiations, and legal procedures, often accompanied by significant fees. Additionally, market conditions can be unpredictable, potentially leading to extended sale times and impacting potential returns.
Geographical Barriers: Traditionally, the location of an individual often limits their access to lucrative investment opportunities. Real estate investment across borders is often cumbersome or even impossible for most individuals, restricting the diversity of available options and potentially limiting investment returns.
These challenges collectively contribute to the exclusion of a vast majority of individuals from participating in the real estate market, particularly those with limited capital. Furthermore, the current market structure can favor rich experienced investors with access to exclusive deals, potentially exacerbating wealth inequality.
Fractit offers several advantages for individuals seeking to participate in the real estate market:
Lower Entry Barrier: Fractit enables access to real estate ownership with a minimum investment of $100, significantly reducing the traditional capital requirement associated with property purchase.
Enhanced Liquidity: Fractit facilitates the trading of fractional ownership units (Fractibles) on secure exchanges & lending protocols. This establishes a dynamic secondary market, granting investors immediate liquidity and flexibility in managing their portfolios.
Passive Income and Capital Appreciation: Fractit streamlines the generation of rental yields for buyers, eliminating the need for active property management. Additionally, investors benefit from the potential for capital appreciation associated with historical trends in real estate value growth.
Portfolio Diversification: Fractit allows buyers to diversify their investment portfolios by acquiring fractional shares (Fractibles) of real estate assets located globally. This diversification can help mitigate risk and enhance overall portfolio performance.
Inflation Hedge: Fractit offers a potential hedge against inflation through the combination of rising property values and rental income generation.
