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Wincity, real estate investment made easier and revisited thanks to NFTs

Real estate investment 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 makes real estate investing accessible using non-fungible tokens (NFTs).

This article is written in partnership with wincity (find out more)

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 telling you that real estate is the best choice to make. However, we are quickly confronted with a harsh reality: the 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 a good, allowing anyone to invest in the sector, while starting to receive a regular pension.

Wincity wishes facilitate user access to the world of real estate by offering the possibility of participating in the acquisition of a property by purchasing an NFT.

To do this, the Wincity team will look for different properties in major French cities, then put them up for sale. a collection of NFTs to finance the acquisition. After acquiring the property, users holding an NFT will own a share of the property, which allows them to get 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 by credit card. The rent is then paid to the owners of these NFTs in ETH. The annual return obviously depends on the price of the property and the rent, but it is generally estimated around 7% per year.

Characteristics 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 last one has the “Unique” rarity.

Thus, the rarer an NFT, the higher its price will be. Holding a card with a high rarity level will grant various benefits on the future Wincity game, in addition to more attractive remuneration.

In addition, owning a Wincity NFT gives you a automatic access to whitelists future collections, as well as an entry fee for evenings organized by the platform.

For the first good, Wincity also sent a physical card representing the NFT to all its holders. Maybe the community will also have this surprise when the next good is sold?

Governance in the hands of NFT holders

Owning an NFT from a Wincity collection allows you to take part in the votes organized by the platform.

This governance will also be more important in 2023, since the Wincity team plans to extend 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 its 1111 units quickly sold out. This successful premiere shows the community’s interest in the project as well as real estate investment in general.

Located in the heart of the French capital, the “Paris Grande Chaumière” property now allows owners of NFTs from this collection to receive a share of the rent in ETH every 11th of the month. With the regular gains and the appreciation of the property, the annual return is estimated at 8%.

NFT wincity

NFT Wincity of 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 that the cryptocurrency world is currently facing, owners of Wincity NFTs still find themselves with an asset that has kept 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 “Lille Liberté” collection had to end despite a very good start.

Indeed, the tenant of the commercial property that investors had in their sights decided to use his right of first refusal. In summary, this last 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 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 4-month period of the right of pre-emption hoping that the sale will not be made to the tenant;
  • Not be reimbursed so that the amount invested finances the next collection.

After a governance vote, the final community decision was to get a full refund which will be carried out in mid-July. The positive point is that the investment was secured in euros, which means that the amount reimbursed will have the same value as the amount invested.

An advantage for people who bought NFTs with ETH, because after the recent fall in the price of cryptocurrency, they will recover the fiat currency value of their investmentnot the value in ETH.

The economic operation of Wincity

When talking about real estate investment, the first point that users are interested in is the potential gains. For those who would like to invest in a Wincity asset, the first remuneration is a monthly pension of part of the rent, which will be received in ETH.

It is also possible that one of the NFTs takes value. Indeed, each of the tokens representing a share of a property, they are all backed by the value of a real property.

Wincity thus offers 3 incentives for NFT holderscorresponding to 3 sources of income:

  • WinCash : the part of the rent paid monthly;
  • WinCapital : the capitalization which results from the bank leverage effect linked to the repayment of the mortgage. It is added monthly to the value of the NFT;
  • Win Plus-Value : the increase in the value of the property, estimated annually.

However, the condition of acquisition of a good requires that all the NFTs of a collection be sold. If this is not respected, investors will still be reimbursed 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 develop a new dimension to the project through gamification. For the moment, the developers are letting the mystery hang over this game, but the release of this future life-size Simcity is hoped for 2023.

On the same theme, the team behind the project wishes create your own metaverse. Investors who participated in the early sales will gain benefits when this new world comes into existence. NFT rarity will also impact these perks, which makes it possible to reward the users who most support Wincity.

Among the future collections of NFTs, note that Wincity is preparing a new real estate investment which will be revealed during the summer of 2022. Particularity of this one: the community will then have the opportunity to vote to choose whether this future collection will be offered on the Ethereum or Polygon blockchain.

Finally, a special collection “History” will go on sale on July 13, 2022. The latter will not be linked to a property, but will however allow promote French culture through 3333 collectible cardsdistributed according to the 4 levels of rarity of the platform.

Wincity NFT card

Wincity Arc de Triomphe NFT (regular)

Wincity NFT card

NFT Wincity of the Eiffel Tower (rare)

These new active ingredients offer a right of governance over several areas as the choice of the future city for the new collections, but they will also have an important role in the future Wincity game. Owning one of the assets in the History collection also gives access to the various Wincity events.

Obtaining one of these cards will be done randomly when opening a “chest” that everyone can buy for 99 euros or the equivalent in ETH. For users with NFTs from other Wincity collections, the platform will distribute between 1 to 4 chests depending on the rarity of the cards possessed by the users.

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 allows anyone to take their first steps in real estate investment, from a relatively correct amount.

Wincity also shoots its strength of its governance decentralized entirely managed by NFT holders. This notably proved its good functioning during the failure of the second real estate sale, where the community of Wincity decided for itself which direction to take.

The transparency and accessibility of Wincity could enable it to become a reference in the field of real estate investment linked to the blockchain.

👉 To follow the news of the project, join the French-speaking community of Wincity on their Discord server

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This is a sponsored and paid article. Cryptoast has done prior research on the products or services presented on this page but cannot be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

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