Investing in real estate is not within the reach of all budgets. High prices and complicated management make this type of investment an activity reserved for the wealthy. Find out how Wincity is making real estate investing accessible using non-fungible tokens (NFTs).
This article was written in collaboration with wincity †More information user manual†
Wincity, a real estate investment platform
If your curiosity has ever made you wonder what the safest type of investment would be, you’ve probably come across people who tell you that real estate is the best choice to make† However, we are soon confronted with a harsh reality: the prices are very high.
Therefore, the Wincity platform offers to split these investments into non-fungible tokens (NFTs). This method breaks the price barrier by pooling users’ funds to buy a commodity so that everyone can invest in the sector and start receiving at the same time a regular pension†
Wincity wishes facilitate user access to the world of real estate by offering the possibility to participate in the acquisition of a real estate through the purchase of an NFT.
To do this, the Wincity team searches for several properties in major French cities and then puts them up for sale. a collection of NFTs to finance the acquisition. After acquiring the property, users with an NFT will own a portion of the property, allowing them to receive a portion of the rent every 11th of the month.
Where the project stands out most is that it is possible to acquire these NFTs with Ethers (ETH), but also with credit card† The rent is then paid to the owners of these NFTs in ETH. The annual return is of course dependent on the price of the property and the rent, but it is generally estimated at about 7% per year†
Features of Wincity NFTs
Wincity’s NFTs linked to real estate have: different levels of rarity† The 1111 NFTs of a classic collection are distributed as follows:
- 1000 “regular” quality cards;
- 100 “rare” NFTs;
- 10 others of “Mythics” quality;
- The latter has the “Unique” rarity.
So the rarer an NFT, the higher the price will be. Holding a card with a high rarity level will give you several advantages: on the future Wincity game, in addition to a more attractive reward.
In addition, owning a Wincity NFT gives you a automatic access to whitelists future collections, as well as an entrance fee to evenings organized by the platform.
Wincity also sent for the first time a physical card that represents the NFT to all its holders† Maybe the community will also have this surprise when the next good sells?
Board in the hands of NFT holders
If you own an NFT from a Wincity collection, you can participate in the voting organized by the platform.
This governance will also become more important in 2023 as the Wincity team plans to expand decentralization of the platform to leave more room for the choices of its users.
A successful first sale
The first collection of Wincity NFTs was released in January 2022, and the 1111 units sold out quickly† This successful premiere demonstrates the community’s interest in the project and in real estate investment in general.
Located in the heart of the French capital, the property “Paris Grande Chaumière” now offers owners of NFTs from this collection the opportunity to receive a share of the rent in ETH . every 11th of the month† With the regular profits and the valuation of the property, the annual return is estimated at 8%†
NFT Wincity or Regular rarity from the Paris Grande Chaumière collection
One of the main advantages of this investment is that the value of these NFTs is: based on the value of the property† With the sharp declines currently facing the cryptocurrency world, owners of Wincity NFTs still find themselves with an asset that has maintained its value.
Exemplary management during an unforeseen event
With a promising start, it made sense to hope for a similar success during Wincity’s second sale. However, despite a very good start, the second collection “Lille Liberté” had to end.
After all, the tenant of the commercial property that investors had in their sights decided to make use of his pre-emptive right. In short, the latter was a priority with the various buyerswho took Wincity out of the race to acquire the property.
But the project team managed to get back on their feet, and consulted the community to decide on the future of the funds already collected during the sale. The owners of the NFTs in the collection had 3 choices:
- Obtain a full refund of their investment;
- Wait for the period of 4 months of the pre-emptive right in the hope that the sale is not made to the tenant;
- Not be reimbursed so that the invested amount finances the next collection.
After a board vote, the community’s final decision was: to get a full refund which will take place in mid-July. On the positive side, the investment is fixed in euros, which means that the amount repaid will have the same value as the amount invested†
An advantage for people who bought NFTs with ETH as they will recover after the recent cryptocurrency price drop the fiat currency value of their investmentnot the value in ETH.
The economic functioning of Wincity
When we talk about real estate investment, the first point that users are interested in is the potential profits. For those who want to invest in a Wincity asset, the first fee is: a monthly pension of a portion of the rent, which will be received in ETH.
It is also possible that one of the NFTs where the† Indeed, each of the tokens that represent a share of a property, they are all backed by the value of a property.
Wincity therefore offers 3 incentives for NFT holderscorresponding to 3 sources of income:
- WinCash : the monthly part of the rent paid;
- WinCapital : the capitalization resulting from the bank leverage linked to the repayment of the mortgage. It is added monthly to the value of the NFT;
- Win Plus Value : the annual increase in the value of the property.
However, the condition of acquiring an asset requires that all the NFTs of a collection be sold. If this is not respected, investors will still be reimbursed by Wincityand can invest again in a future collection.
The future of the Wincity platform
One of Wincity’s primary ambitions is to develop a new dimension to the project through gamification† For now, the developers are letting the mystery hang over this game, but the release of this future life-size Simcity is expected in 2023.
About the same theme, the team behind the project wishes make your own metaverse† Investors who participated in the early sale will reap benefits as this new world comes into being. NFT rarity will also affect these benefits, which makes it possible to reward the users who support Wincity the most†
Note that among the future collections of NFTs, Wincity is preparing a new real estate investment that will be unveiled in the summer of 2022. Special feature of this: the community then get the chance to vote to choose whether this future collection will be offered on the Ethereum or Polygon blockchain.
Finally a special collection “History” goes on sale on July 13, 2022. The latter will not be linked to a home, but will allow promote French culture with 3333 collectible cardsdistributed according to the platform’s 4 rarity levels.
Wincity Arc de Triomphe NFT (normal)
NFT Wincity of the Eiffel Tower (rare)
These new active ingredients provide a right of administration in various areas as the choice of the future city for the new collections, but they will also play an important role in the future Wincity game. Owning one of the assets in the History collection also grants you access to the various Wincity events.
Obtaining one of these cards will be done randomly when opening a “chest” that anyone can buy for 99 Euros or the equivalent in ETH. For users with NFTs from other Wincity collections, the platform will divide between 1 to 4 chests depending on the rarity of the cards held by the users.
Our opinion about the Wincity platform
wincity allows to link the real estate investment field to NFTs in a simple way. This platform makes it possible to democratize this market by making it more liquid, thanks to the division of a property into many parts.
With this platform, anyone can take the first steps in real estate investments from a relatively correct amount.
Wincity shoots too his power of his governance decentralized fully managed by NFT holders. This proved in particular its smooth operation during the failure of the second sale of real estate, in which the municipality of Wincity itself looked in the direction.
The transparency and accessibility of Wincity could make it possible to a reference in real estate investment linked to the blockchain.
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