Real estate investments are 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 makes real estate investing available using non-fungible tokens (NFTs).
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Wincity, a real estate investment platform
If your curiosity has ever made you wonder what the safest type of investment would be, you have probably come across people who tell you that Real estate is the best choice to make. However, we are quickly confronted with a harsh reality: Prices are very high.
This is why the Wincity platform offers to split these investments into non-fungible tokens (NFTs). This method breaks down the price barrier by pooling users’ funds to buy an item, allowing everyone to invest in the sector while they start receiving an ordinary pension.
Wincity wants facilitate user access to a world of real estate by offering the opportunity to participate in the acquisition of a property by purchasing an NFT.
To do this, the Wincity team will look for various properties in major French cities and then put them up for sale. a collection of NFTs to finance the purchase. After acquiring the property, users who have an NFT will own a share of the property, allowing them to receive a portion of the rent every 11th of the month.
Where the project stands out the most is that it is possible to acquire these NFTs with Ethers (ETH), but also with credit cards. The rent is then paid to the owners of these NFTs in ETH. The annual return naturally depends on the price of the home and the rent, but it is generally estimated at about 7% per year.
Characteristics of Wincity NFTs
Wincity’s NFTs linked to real estate have different levels of rarity. The 1111 NFTs in a classic collection are distributed as follows:
- 1000 “Standard” quality cards;
- 100 “rare” NFTs;
- 10 others of “Mythics” quality;
- The latter has the “Unique” rarity.
The rarer an NFT is, the higher the price will be. Holding a card with a high rarity level will give various benefits on the future Wincity game, in addition to more attractive remuneration.
Additionally, owning a Wincity NFT gives you one automatic access to whitelists future collections, as well as admission to evenings arranged by the platform.
For the first good also sent Wincity a physical card representing the NFT for all its holders. Maybe society will also get this surprise when the next good thing is sold?
Control in the hands of NFT holders
Owning an NFT from a Wincity collection allows you to participate in the polls that the platform organizes.
This management will also be more important in 2023, as the Wincity team plans to expand decentralization of the platform to provide more space for its users to choose from.
A successful first sale
The first collection of Wincity NFTs was released in January 2022, and its 1111 units were quickly sold out. This successful premiere shows the community’s interest in the project as well as real estate investments in general.
Located in the heart of the French capital, the property “Paris Grande Chaumière” now allows owners of NFTs from this collection to receive part of the rent in ETH every 11th of the month. With the regular gains and appreciation of the property, the annual return is estimated at 8%.
NFT Wincity of Regular rarity from the Paris Grande Chaumière collection
One of the main benefits of this investment is that the value of these NFTs is based on the value of the property. With the sharp declines that the cryptocurrency world is currently facing, owners of Wincity NFTs still find themselves with an asset that has retained its value.
Exemplary management during an unforeseen event
With a promising start, it was natural to hope for a similar success during the second sale of Wincity. However, the second “Little Liberté” collection had to end despite a really good start.
In fact, the tenant of the commercial property that the investors had in the binoculars decided to use his right of first refusal. In summary, the latter was a priority among the various buyerswhich took Wincity out of the race to acquire the property.
But the project team managed to get back on its feet, and consulted the community to decide on the future of the funds already picked up during the sale. The owners of the NFTs in the collection had 3 choices:
- Get full repayment on their investment;
- Wait for the 4-month right of first refusal in the hope that the sale will not take place to the tenant;
- Not refundable, so the amount invested finances the next collection.
Following a government vote, the final Community decision was made to get a full refund which will be completed in mid-July. The positive is that the investment was secured in euros, which means that the amount was repaid will have the same value as the amount invested.
An advantage for people who have bought NFTs with ETH, because after the recent fall in the price of cryptocurrency, they will recover fiat currency value of their investmentnot the value in ETH.
Wincity’s financial operations
When talking about real estate investing, the first point that users are interested in is the potential gains. For those who want to invest in a Wincity asset, the first consideration is a monthly pension of a portion of the rent received in ETH.
It is also possible that one of the NFTs is taking value. In fact, each of the tokens representing a share of a property is all supported by the value of a property.
Wincity offers thus 3 incentives for NFT holderscorresponding to 3 sources of income:
- WinCash : the part of the rent paid monthly;
- WinCapital : the capitalization resulting from the bank leverage effect associated with the repayment of the mortgage. It is added monthly to the value of NFT;
- Win Plus value : the increase in the value of the property, estimated annually.
However, the condition of acquiring an item requires that all the NFTs in a collection be sold. If this is not respected, investors will still be repaid by Wincityand will be able to invest again in a future collection.
The future of the Wincity platform
One of Wincity’s primary ambitions is to evolve a new dimension to the project through gamification. At the moment, the developers are letting the mystery hang over this game, but the release of this future life-size Simcity is hoped for in 2023.
On the same theme, the team behind the project wants create your own metavers. Investors who participated in the early sale will benefit when this new world emerges. NFT rarity will also affect these perks, making it possible to reward the users who support Wincity the most.
Among the future collections of NFTs, note that Wincity is preparing a new real estate investment, which will be unveiled during the summer of 2022. The special thing about this: the community will then have the opportunity to vote to choose whether this future collection will be offered on Ethereum or Polygon blockchain.
Finally a special collection “History” goes on sale on July 13, 2022. The latter will not be attached to a property, but will allow promote French culture through 3333 trading cardsdistributed according to the platform’s 4 rarity levels.
Wincity Arc de Triomphe NFT (regular)
NFT Wincity of the Eiffel Tower (rare)
These new active ingredients offer a right to govern in several areas as the choice of the city of the future for the new collections, but they will also play an important role in the Wincity game of the future. Owning one of the assets in the History Collection also provides access to the various Wincity events.
Getting one of these cards will happen randomly when you open a “chest” that anyone can buy for 99 euros or equivalent in ETH. For users with NFTs from other Wincity collections, the platform is will distribute between 1 to 4 chests depending on the rarity of the cards that the users possess.
Our opinion on the Wincity platform
wincity allows to link the field of real estate investment 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.
This platform gives anyone the opportunity to take their first step in real estate investing from a relatively correct amount.
Wincity shoots too its strength in its control decentralized managed exclusively by NFT holders. This proved in particular that it worked well during the failure of the second property sale, where the community in Wincity itself decided which direction to take.
The transparency and availability of Wincity could enable it to stay a reference in real estate investments linked to blockchain.
👉 To follow the news of the project, join the French-speaking community of Wincity on their Discord server
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