How to Become a Digital Real Estate Investor in the Metaverse
Any real estate investor will tell you, ROI is at the heart of their motives. Whether they’re investing in a community-based project meant to create jobs in a disadvantaged neighborhood, or erecting a 50-story-tall skyscraper in NYC for commercial use—they’re expecting a return on their investment.
It was discovered fast--digital real estate is available to grabs on virtual platforms like Decentraland and OpenSea. Both are online where users can buy and sell digital assets like fashion, music, art items, and even real estate.
Most of us are aware that the concept of value of properties in the online age is relatively new. You may be asking yourself, what use could be made of tangible real estate that isn't tangible?
The first thing to know is the fact that, as the universe expands it's users will begin to establish identities within it (similar as what we've seen in video games with avatars). Just like avatars need clothing as well as locations to visit within the realm of metaphysics. This is where digital real estate plays a role.
What exactly is the Metaverse?
Since Facebook revealed its plan to join the metaverse and the metaverse was gaining attention, knowledge about the new realm has spread rapidly. Nearly everyone has heard about the metaverse, however due to the fact that it is "newness," few people are aware of how it operates.
Metaverse is best described as an alternate digital world in which people work, take part in leisure activities, and even have their own online identities. By combining elements of augmented and virtual reality to replicate real-world experiences, it's basically the latest web version. (It's often called Web 3.0).
The concept itself, metaverse, has been in use for a number of years. But, it has only gained popularity because of the new business opportunities that came up after Facebook's announcement.
One of these possibilities for business is, in actual purchasing and selling online real estate. Virtual land will serve as a place where our virtual identity (or avatars) to interact with. As more users join the realm of metaphysical reality there will be an increasing requirement to use the digital realm.
What are the benefits of investing into Virtual Land as well as Real Estate?
Anyone who invests in real estate will inform you that ROI is at the core of their goals. It doesn't matter if they're investing into an initiative that is aimed at helping create jobs in a poor area, or building the 50-story tallest skyscraper in NYC to be used for commercial purposes, they're hoping to earn an increase in their investment.
What's the return on investment in the digital realm?
Based on the purpose you plan to make use of your land There are many possibilities for investors in digital real estate. People who are familiar with cryptocurrency trading have an advantage due to the fact that the virtual land can be bought and sold using cryptocurrency.
Investors can purchase a piece of space in the metaverse to construct whatever they want whether it's a performance space to host concerts or a co-working space for business gatherings.
To provide an example concrete, Snoop Dogg is currently working on "Snoopverse" on the Sandbox which is a virtual reality platform that is geared towards entertainment and gaming. Snoopverse is envisioned as Snoop Dogg's virtual world inside the metaverse. This month, an Snoopverse fan under the name P-Ape bought an entire piece of land in the world of Snoop for $400,000.
"I'm always looking for innovative ways to connect with the fans I love and what we've developed within the Sandbox will be the next generation of online hangouts, NFT drop and exclusive shows," says the rapper and entrepreneur of his new venture.
While it is not tangible, property on the metaverse definitely has the potential for making money. In June , the land was purchased for more than $900,000.00 in Decentraland which is one of the most popular platforms used to buy digital real property. The transaction was completed through (MANA) which is a cryptocurrency that acts as a sidechain of Ethereum.
Another noteworthy digital real estate deal taking place in the metaverse in the year to come included this year's $2.8 million acquisition of virtual property in a new fashion district, which was facilitated by Tokens.com. Based on the origins of VR and NFTs in the world of gaming, where players began purchasing clothes for their avatars, the fashion industry is an extremely promising area to investigate on the other side of the universe.
There are many virtual worlds you can begin investing. Decentraland is perhaps the most well-known among those who are interested in real estate. The price of land in Decentraland at the time of writing was 3.087 Ether, which is equivalent to $13,675.
How to Buy Real Estate in the Metaverse
Step 1: Purchase an electronic wallet
It's not possible to purchase digital real estate in dollars in the real world. You'll require cryptocurrency. The first thing you need to do is to set up your wallet online so you can buy virtual land with the appropriate coins. (Similar to the way you change dollars into REAL currency in Brazil or YEN while traveling to China).
On Decentraland The currency on Decentraland is called MANA. On Sandbox which is the place where Snoop's Snoopverse is located the currency is called SAND. You'll require MANA to buy land on Decentraland as well as SAND to buy the land in Sandbox. The currencies aren't interchangeable.
Whatever currency you select Make sure you record the seed phrase that you're given when you access your wallet. Consider this as your "virtual bank account" details. It is important to keep it handy; keep a record of it as much as you can. Seed phrases are extremely difficult to find once they are lost.
Step 2: Select an Buy Platform
After you have your digital wallet setup and you're ready to go, there are a number of options for purchasing land. You can purchase land directly through the metaverse platform, like Decentraland as well as the Sandbox as well as make use of a third-party service like OpenSea.
If you are a first-time investor It is recommended to search through a third-party website. OpenSea and NonFungible.com both let you search for land parcels that are virtual without the need to move from one platform to another. Different platforms provide buyers with varying pricing and digital land features. It can be a hassle to log in and out of several platforms while evaluating the land.
When using a third-party service, buyers can examine prices offered in the local equivalent to a currency. This can aid in understanding the amount of money being invested in a specific investment. This is particularly important because each cryptocurrency has its own worth, independently of other cryptocoins.
The benefit of purchasing the land directly from metaverse platforms , such as Decentraland or Sandbox the advantage is that you will get the full picture of what amenities are in the vicinity and the people who live there. This is most likely the most suitable option after you've made some progress as a virtual real property investor.
Step 3: Create an Offer and Close the deal on your virtual Real Estate
The real-world scenario is that the closing of the property you want to purchase could be the most difficult aspect in the entire process. However, that's not the case for digital real estate, at most for the time being. When you've located a property that you're looking to purchase the only thing you need be doing is click the property and purchase it.
Appraisals don't exist within the realm of metaphysics also at least, not currently. But, there may be possibilities to negotiate the price. For instance, Decentraland allows you to make an offer that can be approved or denied from the property owner.
If your wallet has been credited with funds, your the property is picked and the cost is set, you're now ready to buy. This transaction will be recorded in your account and creates an NFT title for the property, which is only yours.
It is important to be aware that however exciting it might be the metaverse remains an uncharted territory. Real estate investment in digital form is a completely innovative form of investment and is changing rapidly.
In the past few months you could have a piece of digital estate for only a couple hundred dollars. As 2021 approaches, you'll only need a few thousand to start.
There isn't enough information of digital real estate transactions to establish how the market for virtual land will perform. Investing in it is highly uncertain as the marketplace is unpredictable.
It's not that you shouldn't be hesitant about investing in digital real estate, it's only important to know that there isn't a price threshold or setting the level of demand for this new product. Be aware of the amount of you invest in this exciting new project.