June 9th: I am in a hotel room in NYC: I am nervously staring at the screen of my small, rose gold colored computer. Thankfully, the WiFi is working well, − which is always an unknown at a hotel. In one hour, an irrevocable auction online will start. Truthfully, I have no idea what will happen.
It all started in April this year, when I wrote an article sharing the idea that real estate is the perfect asset to convert into a Non-Fungible Token (NFT). This led to a life-changing collaboration with other innovative individuals, united to build something transformative.
I argued at the time that the reason a real estate property was the perfect candidate for an NFT was that it already behaves like a digital asset in many ways. NFTing one provides numerous benefits, such as instantaneous settlement, and a simplified overall transaction process – exactly what young people who grew up with smart phones desire. Real estate transactions are long, tedious and archaic. I was hoping to show it was possible to change.
We have already seen a new generation of home buyers looking for other solutions beyond the status quo. Unaccustomed to the costly and lengthy, drawn-out process of home-buying, with its reliance on outdated methods of transacting business and multiple middlemen, they are demanding a transparent, “one-click” process that is quick, efficient, and reflective of the era they live in. They’d rather not buy a home than get into a hideous process.
After the article was published, I received many inquiries from real estate investors, agents, homebuyers, venture capitalists and coders asking how they could get involved. I was convinced that consumers were ready for this innovation, just like they were ready to buy art on blockchain. So I decided that it was time to discover how to NFT a property.
We’ve been working on this for years but there were remaining challenges that we needed to solve:
Creating the actual NFT
Wrapping the NFT within the U.S. legal framework
Inventing the “know your customer” process since most art NFT transactions are anonymous
We solved the NFT creation issues by switching the property ownership from individual ownership to a US-based legal entity. Doing so enabled us to simply transfer ownership of the entity via NFT, which automatically transferred ownership to the property. And, as an added benefit, because the entity held the property title, there was no need to record the title again in the county − saving significant time and money.
Then we developed a protocol that would transfer an asset from one wallet to another, collect personal names, and complete simple background checks − all of which ensured the transaction’s integrity.
Having all challenges resolved, we found the perfect property to NFT — a studio apartment, that was owned by a US-based legal entity. It was also the first cryptocurrency property purchased via smart contracts in 2017. Purchased by Michael Arrington, founder of TechCrunch and Arrington Capital, the NFT included the apartment and a piece of art by a famous local street artist Chizz.
With the NFT created, we scheduled a 24-hour auction on June 9th, 2021. While I was at first worried that we wouldn’t have bidders, over 40 bids were placed in Ethereum cryptocurrency. The winner was a first-time home-buyer − a millenial from Silicon Valley. After a stressful 24 hours plus six, 15-min extensions, sitting in the same hotel, ordering room service to not skip a minute from the online miracle, I was relieved − it was all successful. Technology worked. People wanted this asset.
The new NFT owner was thrilled with the process − it took only 22 minutes to transfer ownership − a far cry from his experience trying to buy a home in the Bay Area, a process he found far too complicated, so he never did. I learned about his experience after he kindly agreed to have a zoom call after the sale. He shared his plans to rent out the apartment as a historical one, and told me that he had been ready to pay double the price for this asset.
NFT or not, Millenials and Gen Z are already purchasing high-value assets such as expensive avatars, or automobiles online. They expect the same ease and transparency when buying real estate. However, higher levels of security and more data integrity are necessary to circumvent wire and other forms of cyber fraud common in such transactions. Real estate settlement on an immutable blockchain using NFT technology could very well be the solution these new generations demand.
Brad Garlinghouse, CEO of Ripple, speaking at the Milken Institute’s 2021 Global Conference, said that settlement on blockchain is applicable in many industries including real estate for “any transaction that requires someone to commute the trust between the transaction” [ participants].
People who will help consumers to NFT their homes could be entitled to royalty fees paid to their digital wallets automatically. These “NFT Miners” (similar to cryptocurrency miners) can receive small royalties for every future purchase as compensation for putting all of the data and the property to make it transferable (title report, inspection reports, disclosures ect).
Can the NFT revolutionize the real estate industry? I say absolutely! We are not just seeing interest rise amongst younger buyers and sellers and tech-savvy crypto enthusiasts who want to diversify their portfolios.
Agents and brokers who are also interested in setting themselves apart from the competition are actively learning and engaging in the crypto/NFT/blockchain space. Here’s what Mauricio Umansky, CEO at The Agency shared with me when I asked his opinion about real estate NFTs at the recent Inman Real Estate Connect Conference, “As clients become more educated about NFTs, there is growing interest in creating NFT real estate with real property. Changes in technology always align with changes in the real estate industry and at the minimum, this is a novel marketing tool to reach an audience interested in the metaverse. On the other hand, it can revolutionize our concept of real estate commodity and what clients will come to expect in a transaction. I believe NFTs will bring significant change to our industry.”
Once it is possible to NFT an property, the NFT will become collateral in the crypto world which unlocks crypto-enabled mortgages, where crypto holders would be able to participate in liquidity pools to secure peer-to-peer decentralized lending marketplaces for real estate similar to the current popular defi lending protocols for cryptocurrencies. NFT, DeFi, crypto title insurance protocols, and crypto appraisal solutions will create a full cycle for the new age of liquid real estate. At the end of the day, the concept of homeownership is a social consensus just like the NFT art.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
