Sell land in the tiniest pieces (1 square inch or something of that magnitude) to people who have less money (than needed to invest in real estate today) but still want to invest in real estate. This idea is in response to the challenge - How to create a system to make small investments in real estate?
So that people with less money can invest in real estate.
Create community areas in your neighborhood that are owned by the community. They reap the benefits and money generated off it.
This can be done by governments or people who have free land but don't want to sell all of it. The owner divides their land into small pieces like on a checkerboard. People interested in real estate start buying the land one piece at a time. If you have more money, you could buy multiple pieces at a time. The land is usually adjacent to a city or town, which is bound to be accommodated soon (in the next 5 to 10 years). The pieces of land are adjacent to each other. You can sell your piece whenever you want. Real estate rarely sees a downward trend, so it could be profitable. Investors are responsible for their own judgment in deciding which areas will do well in the next 5 years and invest there. This is just like stocks. Instead of equity, you invest in real estate.
What if I want to use the land?
If I want to build a house in such an area, I could buy multiple adjacent pieces sufficient enough for me to build something on it. I pay off all the investors in that area with the current rate. If someone does not want to sell their bit, they can be allocated another bit in the same area that is not a hindrance to building the house.
Farmers who need money could sell pieces of their land on the condition that they will still remain agricultural land the farmer will tend to it. Some share of the profit of the agricultural produce will go to the investors since they own it (this is equivalent to receiving dividends on your stock investments).
What if I don't want to sell?
There will be people who are in it for the long term. Every designated real-estate location will have a certain area that is reserved for leasing out. Those who don't want to sell their land are allocated pieces in this lease location. This location is leased to malls, stores, community buildings, etc. The lease amount is distributed among the investors (equivalent to dividends).
Global tiny real estate investments
Depending upon the current real estate rate in a particular area, the prices will vary in different locations. You may be able to sell one piece at a prime location and buy 10 pieces of equal size at a secondary location. If you know that area will do better in the coming years, it will be a good investment.
How does the original owner benefit?
They don't need to sell all of their land, just the parts that are in excess.
They could buy more land with the earned money and make tiny pieces there, too.
They find clients easily compared to looking for a person who wants to buy the whole lot.
Shubhankar Kulkarni Jun 02, 2022