While many industries have stayed current with technology trends and established industry standards, real estate is a notable exception. Perhaps it’s the notable exception when considering that real estate is the largest commodity in the world, with an estimated $217 trillion valuation.

The real estate industry is still in the infancy stage of technology innovation. Though, as technology continues to grow, you can expect real estate/property investments to never be the same again.

There are several benefits of investing in real estate/properties, however, there are some constraints such as the need for huge capital, property management skills, etc. that could prevent just anyone from investing in real estate.

The Great News!

HouseAfrica has done what any company with a good prospect should do — discover a problem and find a solution. And it has done it quite innovatively.

HouseAfrica is a PropTech company that enables people to own shares of multiple properties, and earn returns.

In simple terms, it means they help people (investors) to co-own the properties, by buying small shares of the property with as low as N10,000

Speaking with some of the directors — Uba Nnamdi and Ndifreke Ikokpu, they were able to explain some of the innovative concepts/technology (including blockchain technology) deployed to provide solutions to all the perceived problems associated with investing in real estate.

I am particularly excited about HouseAfrica because asides enabling the low/mid-income earners to invest in real estate, it also helps propagate the development of housing, therefore mitigating the problem of housing deficit.

Let’s quickly create a scenario! Take, for example, Gabriel has been able to save up ₦2million and is willing to invest in real estate. If he is lucky to get a piece of land (about 465 sqm) for ₦1.5million, he will have ₦500,000 left, which may only be enough to develop the foundation of the building. Meanwhile, Gabriel will need extra ₦2million to have his building completed. Therefore, Gabriel must have to get the money required to complete the building, and can only start earning when the building is completed and rented.
There are two (2) major problems I see here; 1) The investment is capital intensive. 2) His ₦2million may be stock for a long time with no returns over the period.

Now, with HouseAfrica’s model of splitting properties into shares, Gabriel could easily buy some shares (measured in square meters) of multiple real properties and start earning returns on the money invested. Hence, he stands to benefit more than just capital appreciation and rental returns. He is relieved of the huge stress of managing the properties during and after development.

Another huge solution HouseAfrica brings to the industry is high liquidity in real estate. Primarily, current assets are different from fixed assets such as real estate due to its liquidity attribute. Nevertheless, HouseAfrica has been able to tokenize real properties, thereby making the asset very easy to be converted to cash.
No wonder the company is beginning to get fame and recognition all across the globe.

Interested in HouseAfrica? Visit www.houseafrica.io