[**Landshare**](https://landshare.io/) brings real estate to the Binance Smart Chain, offering a hassle-free alternative to traditional real estate investments. Featuring asset-based stablecoin vaults, crowdfunded house flipping, a governance protocol, daily buybacks, and token staking, Landshare offers a full-fledged DeFi experience based on the US real estate market.
**Problems with traditional real estate investments :**
* **Illiquid Asset** – Real estate is probably the only illiquid investment that middle-class people in their portfolio hold. Selling real estate is challenging in all markets. It becomes even more difficult in downtimes, and sellers often have to wait six months to one year before obtaining cash in place of their property. Therefore, the middle class shouldn’t have a massive portion of their portfolio in an asset class from which they cannot withdraw easily.
* **Opaque** – The real estate market is not only illiquid but also opaque. In stocks, bonds, and other securities, the listed prices are the same as transaction prices. However, in real estate, the listed prices are very different from the rates at which transactions occur. It is challenging for a buyer actually to know the correct buying price. The market is famous for buyers and sellers being ripped off by unscrupulous middlemen if they are not careful.
* **Low Returns And High Expenses** – Real estate investments are known for providing low returns. Traditionally, the returns on real estate investments have been less than the rate of inflation. In the past few years, there was a sudden spike in the capital appreciation earned on real estate. The rentals made are also negligible. Also, to earn rent, a lot of time, money, and effort has to be put in. Also, many times, it is just challenging to rent outhouses. Hence, there is an element of risk as well. On the whole, the returns earned by real estate are comparable to risk-free investments even though many risks have to be taken. This is what makes reality a bad bet for the middle class.
* **Transaction Costs -** Real estate also has abnormally high transaction costs. Firstly, each time a sale occurs, the government has to be given a large sum of money. Also, there are costs such as legal fees, brokerage, and appraisal costs involved in every real estate transaction. Hence, each time a transaction occurs, roughly 10% of the value is lost to transaction costs. This also contributes to the illiquidity point that has been mentioned above. However, the bottom line is that since the transaction costs are so high, buyers are left stuck with the property they purchased even if it turns out to be a mistake.
**New Kind of Real Estate Investment**
Gain all the benefits of real estate investment with none of the risk or commitment. Stake your stablecoins in our Property Vault to earn yields based on the rental value and appreciation of assets, or invest in our house flipping pools to make a lump sum payout.