In September 2023, the BACEN Monetary Policy Committee reduced the economy’s basic interest rate – the Selic – by half a percentage point, a decision that impacts investments such as real estate tokens and FIIs. But why will real estate tokenization be affected?

The reduction is part of a trend that began at the Copom meeting the previous month and is expected to repeat until the end of 2023 – a reflection of greater economic stability with structural reforms and pressure from productive sectors for better credit conditions.

A falling Selic reduces the cost of money in banks and the attractiveness of fixed income investments, while benefiting variable income products such as FIIs.

But is the favorable scenario for investing in real estate assets only in the traditional market? Can real estate tokens be positively affected?

BLOCKBR, a company that develops tokenization infrastructure, will talk about this economic scenario that could favor real estate funds!

HOW THE SELIC CUT AFFECTED REAL ESTATE INVESTMENT FUNDS

The Selic rate is the most important guide for all economic policy planning, since its fluctuation impacts a series of aspects, including:

• Cost of credit in the banking system (banks and financial institutions);
• Inflation control: the increase in the Selic is used to discourage consumption and investments to contain inflation;
• Exchange rate: with the Selic rate rising, foreign investors are attracted to the country, which increases demand for the local currency and increases the value of the real in relation to other currencies;
• Consumption: with more expensive money in loans and financing, family consumption falls, especially in assets such as real estate, vehicles and travel;
• Investment: a falling Selic discourages fixed income investments linked to the rate, such as Tesouro Direto and increases the attractiveness of variable income assets.

IMPACTS OF THE LOW SELIC ON REAL ESTATE FUNDS

As it is a variable income product, the FII is one of the investment options for those who want to leave an investment linked to the Selic and accept taking more risks to do so. Furthermore, real estate funds benefit from important movements in the market.

• Increased demand for real estate credit and furniture purchases;
• Reduction in the cost of works;
• Valuation of available assets;
• Reheating of the construction and rental markets.

Given this scenario, there is potential to increase the profitability of investments in real estate.

It is important to highlight that, despite the impacts of economic and monetary policies on the real estate market, it has a perennial attractiveness, as it is made up of fundamental assets for families and businesses.

Therefore, investing in real estate must be maintained even at times of a higher Selic, as the long-term trend is to gain from the appreciation of assets that have constant demand.

IS IT WORTH INVESTING IN REAL ESTATE TOKEN?

The tokenization of assets is a profound transformation in the offer of investments in goods, rights and projects and with an increasing presence in the economies of countries and in the lives of investors.

In the world of tokenization, the real estate sector is one of the most notable for bringing together characteristics that align with the main benefits of blockchain technology.

See some of the reasons to invest in real estate tokens.

FINANCIAL ACCESSIBILITY

Real estate tokens allow investors to buy fractions of properties, which reduces the entry barrier, allowing small investors to enter with low contributions, something that is unfeasible in FIIs and the most profitable applications on the market.

DIVERSITY OF INVESTMENTS

It is possible to diversify the investment portfolio with the variety of offers, from logistics complexes to commercial slabs and residential or business condominiums, which helps to enhance results and reduce risks.

HIGHER LIQUIDITY

Properties are low liquidity assets when it comes to selling them on the traditional market. However, tokens can be bought and sold on the secondary market, offering more freedom in investment decisions.

SELF-MANAGEMENT OF INVESTMENTS

Unlike FIIs, where fund management plays the role of prospecting opportunities and making decisions, with tokenized properties, the investor himself manages his basket of tokens, gaining the agility of buying and selling.

GLOBALITY AND AVAILABILITY

The token offering platform never closes and can be operated from any location on the planet without local intermediaries. The legal infrastructure is guaranteed by the offeror and the tokenization company.

Therefore, all you need is a smartphone or notebook to invest in real estate tokens!

WHY CHOOSE BLOCKBR TO START OPERATING AND INVESTING WITH TOKENS

For bidders and investors, BLOCKBR is a qualified, experienced company and always with a keen eye on business opportunities with tokens of real value.

• Each project is carefully analyzed regarding its technical, legal and fiscal feasibility to provide the necessary legal certainty;
• The distribution of tokens is done in a token marketplace that is simple to use and transparent about all offer conditions;
• We have the expertise to organize and develop the complete infrastructure necessary to meet customer and market expectations.

The evolution of tokenization in the market is carried out by legally and technologically solid organizations committed to security and better governance.

BLOCKBR is proud to be one of them!

INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!

Buying a token is simple if you have a partnership that makes everything simple like BLOCKBR! We are an experienced asset tokenization company qualified to guide you on how to apply business tokens safely and with great results.

Open an account on our token marketplace and in minutes you will have access to a diverse universe of offers for all investor and budget profiles. Additionally, you can start investing in tokens from 50 reais!

Come to BLOCKBR, boost your results and get closer to your dreams!

TOKENIZE YOUR ASSETS WITH BLOCKBR!

Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.

Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.

Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?

Come and talk to BLOCKBR.

We have the best token offering strategy on the market!

BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.

For more information, visit: http://www.blockbr.com.br or @blockbr_ on social media.