Nassau, Bahamas, Nov. 17, 2022 (GLOBE NEWSWIRE) — Individuals have long been buying and selling land as a form of long-term investment. Yet with the restricted amount of land and, by extension, structures everywhere, many governments and nations have very severe restrictions around it. Their unit costs are relatively high due to scarcity and growing demand; after all, every population (also expanding) wants a place to live and work.
KODO Assets introduces and applies tokenization to simplify the administration of all interactions with blockchain networks, such as the retrieval of token data and the operation of smart contracts. This in turn provides those who wish to dip their toes into the market with a platform that alleviates some key issues uncovered in the traditional real estate market.
Real estate perceptible gap
The potential of the real estate industry is clouded by a set of peculiarities that permeate the space. From an investor’s perspective, property prices seem to have skyrocketed around the world, especially in Sao Paulo. With the existing barrier to entry, many investors who wish to allocate a small fraction of their equity into a high liquidity asset find themselves discouraged from this increasingly demanding space.
High transaction costs and the time it takes to process them don’t help either. Buying real estate in Brazil is a formal legal transaction, which can result in a waiting period of up to ten days. The industry requires acute sensitivity to detect the best opportunities for action, it’s a meticulous process that can hamper an investor’s time and money.
With tokenization capabilities, KODO is able to bridge the gaps that haunt the real estate industry and shed new light on those who wish to participate in this hard-to-reach industry.
KODO’s Solution: Real Estate Tokenization
Kodo Assets was born out of the belief that tokenization is the best way to solve the real estate market’s biggest problems, such as low liquidity, high barriers to entry, high transaction costs and bureaucracy that keep many investors from investing. enter the real estate market.
With tokenization, sensitive information is converted into anonymous “tokens” that can be stored and used in a system behind the firewall. Tokens are pieces of information that can be exchanged for other more important data. Data that has been tokenized cannot be decrypted or undone. For this reason, even if a tokenized environment were to be compromised, the original sensitive data would remain secure.
As the underlying asset is a low-risk investment compared to stocks or cryptocurrencies, it is reasonable to expect KODO1 tokens to have higher liquidity than those invested directly in the immovable. Compared to the real estate market, entering the token market is easier because the minimum investment ticket is lower and the market is open 24/7 anywhere in the world.
Without the need for title transfers or property registration fees, the costs of buying and selling tokens will be lower than the costs of buying and selling real estate.
Rental logistics managed by the KODO team
A large multinational is currently renting the property and its lease will end on June 14, 2025. After deducting IPTU and condominium fees, the present value of the lease is US$19,979.84.
The KODO team will take care of the rental logistics during the rotation. It is also important to note that the IGP-M (General Price Index of Brazil) revises this sum on the anniversary of the contract and makes the necessary adjustments.
Distributions of rental income in the form of dividends
Once ownership is acquired, profits will be sent to people who own tokens using USDC, which is the most trusted and open stablecoin in the cryptocurrency market. KODO1 tokens will be returned to the wallet where they were originally stored at the time of distribution. This stablecoin was chosen because a major global independent accounting firm verifies it every month. Even though it is not a decentralized coin, it is a safer way to set up support for the asset.
Rents will be paid directly to the owner of the property, Kodo FL1 Administracao de Bens Próprios Ltda, and will be taxed at the rate of 14.53%.
It is agreed that 6% of pre-tax gross will go to the property management company and 10% will go into a reserve fund for reasons that will become clear later. Kodo Limited, which manufactured the tokens that represent the ownership rights, will receive dividends equal to the amount remaining after the removal of discounts (VRD). Finally, Kodo Limited will take care of distributing the money made from the sale of the tokens among the investors who bought them.
A solid project with a solid team
KODO Assets is backed by a passionate team of business and Blockchain experts. The CEO, Ciro Iamamura, holds a bachelor’s degree in production engineering and financial management as well as a degree in civil engineering. A budding lawyer, Iamamura plays an important role in consolidating KODO, with extensive experience to lead the company to new heights.
His impressive feat is closely watched by KODO CTO Andre Daher, who holds a degree in Computer Engineering from USP. An engineer familiar with all things web development and cloud-based applications, Daher is also an expert in blockchain technology, having familiarized himself with asset tokenization initiatives, digital wallets, and Web 3.0 applications.
The two form the backbone of KODO with their vast entrepreneurial backgrounds, promising a solid solution for the future of tokenized real estate.
For more information and to stay informed about the initiative, follow KODO on their social networks:
CONTACT: Ciro Iamamura KODO Assets ciro.iamamura (at) kodoassets.com