🔴What problems does Zona solve?
Speculating or hedging global real estate markets is difficult.
For investors to go long on real estate in a specific city, they generally need to purchase physical property there. However, there are:
High transaction fees. Investors purchasing real estate are often required to pay up to 5% of the total purchase value to the real estate agent as a fee. A million dollar transaction would require a fee of approximately $50K.
Extremely time-consuming transactions. Lengthy negotiations with landlords and legal paperwork mean that investors may have to wait up to months before the transaction is finalized.
High operating costs. Investors are generally required to pay an annual property tax to the local government for holding a property.
There are additional hurdles if the desired city isn't one that the investor is a citizen of, including:
Higher tax fees. Non-citizens are generally subject to higher taxes when investing in real estate in most jurisdictions.
Regulatory risks. Although the current government may allow foreigners to purchase and own real estate, this may not continue to be the case when the next government comes into power. This is especially true in developing countries.
Currency risks. If the currency of the desired city falls, the investor faces a risk of losing money even though his investment was directionally correct.
On the other hand, there is no existing financial instrument that allows users to short the real estate market of a specific city. Although some investors may choose to short Real Estate Investment Trusts (REITs), this generally only provides exposure to the broader real estate market, instead of a single targeted location.
Zona solves this by allowing investors to long or short global real estate markets at one click via an on-chain perpetual exchange.
As Zona is an on-chain and fully self-custodial perpetual exchange, advantages include:
24/7 and global. Zona operates at all times for a global user base without currency risk.
Near-instant transactions. Real estate investments are finalized in seconds rather than months.
Minimal fees. Investors can save up to 99% in transaction fees and ongoing operating fees.
Low capital requirements. Investors can take a trade with just $1, instead of having to shell out hundreds of thousands of dollars for physical property.
Last updated