Real Estate in the Metaverse - Will you be investing?

[Julio Gonzalez]

There’s a new way to invest in real estate - one that none of us probably ever imagined. It’s in a virtual reality through the metaverse. The metaverse is used for play, work, learning and socializing. Many of the things that we can do in real life, we can also do in the metaverse. One of those things being investing and making money. Large companies such as HSBC, JP Morgan, Samsung and PwC have already started purchasing plots of land. About a year ago, a plot of land cost around $1,000 in the metaverse. That same land is now around $13,000. Is this the next BitCoin or NFT? Or is it just a matter of time before the metaverse market collapses?

Some people are buying land simply for the fun of it while others are buying it as an investment in hopes that the land will become more valuable over time. If you’re looking to buy land in the metaverse, you will most likely need cryptocurrency such as SAND, Ehtereum or MANA. When you purchase the land, it is transferred as an NFT, therefore you must also have a wallet to be able to store the purchase.

While this is already a speculative investment, it's also hard to determine if it offers a lot of investor protection since it is mostly deregulated. Similar to cryptocurrency and NFTs, everything is secured on blockchain. As long as you can remember your password, it should be protected. One major concern is that in real life, the value of land increases because there is a finite amount of land. We simply cannot create more. Although there are currently limits on the amount of land each metaverse platform has, it’s not guaranteed that when the land runs out, they won’t create new plots.

It is a very interesting concept that we could be landlords in a virtual reality. A whole new set of tenant issues that have yet to be discovered!! You can buy houses to flip, rent houses out, build new houses, own commercial properties, hotels, etc. just like in real life. You could even own your childhood home virtually!

Many large companies are investing money into the metaverse and are considering it to be the “next generation of internet”. As such, this suggests a positive future for the real estate market in the metaverse.

Will you be investing in real estate in the metaverse?

[Terrell Garren]

No time for SimCity on steroids or Zuck's cyberworld.  I'll opt for real property and real people that need a place to live.  Although I do like the idea of unclogging a virtual toilet instead of the actual one.