A Beginner's Guide to Virtual Real Estate

Table of Contents

• 1. What is Virtual Real Estate?
• 2. How Virtual Real Estate Works
• 3. How to Buy Virtual Real Estate
• 4. Virtual Real Estate and The Metaverse
• 5. A Beginner's Guide on Virtual Real Estate: Investing 101

What is Virtual Real Estate?

In the real world, you can invest in property like land, houses and estates. Real estate provides a lucrative investment for people who have the capital required to purchase the available assets. The development of the metaverse has changed everything: now you can buy a virtual plot of land that has an actual deed online. The only difference is that the property you purchase is stored as pixels on the metaverse. 

Virtual Real Estate can simply be described as intangible digital assets made available for sale and investment on the blockchain. Digital assets consist of assets that are valuable online: that is, items that can be traded in the real world for cryptocurrency or fiat currency. Examples include domain names, high ranking websites and even documents. 

In the world of virtual real estate, you can buy plots of land in the metaverse with the aim of developing property, selling out properties for a profit or even renting out the plots for events in the metaverse. In today's article, I will be guiding you through the inner workings of virtual real estate as well as how you can invest in the virtual real estate industry. I will also be covering key topics in virtual real estate like its relationship with the Metaverse and its NFTs. With all that being said, let us get to the business of today.

How Virtual Real Estate Works

Virtual real estate is very much like physical real estate. However, if you want to invest in physical real estate assets, the process is longer and more time consuming. There is a long waiting period in which you have to get approvals, sign documents, inspect property and make payments before you get access to your property. Virtual real estate works by providing buyers with faster and easier access to their assets just by registering on the metaverse platforms and adding the assets to their carts.

In the virtual real estate world, you don't need to request approvals or physically inspect any property. All you need are cryptocurrency tokens to buy digital assets on the blockchain and an active registration on the metaverse platforms. Platforms like Decentraland, The Sandbox and Earth2 offer different digital assets for you to buy and make a good profit from in the long run. Once you buy your assets, you are given a deed with a unique code that ensures no duplicity or fraud. In addition, you are given multiple options and the opportunity to develop your assets.

It may seem silly that people buy plots of land that do not exist physically, but investors do this for a good reason. Virtual real estate increases in value as more people buy the available assets. For example, a plot of Decentraland land that sold for $20 in 2017 is now well over $15,000. In addition, these digital assets can be developed in the metaverse and rented out to host events. The plots of land can also be used for advertising by organizations, generating funds for investors. 

How to Buy Virtual Real Estate

If you want to buy virtual real estate, you should do research on the best platforms available for you and the type of digital assets you want to buy. For example, if you want to buy plots of land on Decentraland or The Sand Box, you will need to install Metamask as a Google Chrome extension. Metamask provides you with a cryptocurrency wallet which you can fund with MANA if you want to buy a plot of land on Decentraland and SAND if you want to buy assets on The Sandbox.

You can fund your Metamask wallet by buying MANA or SAND from exchange platforms like Binance and Kucoin. Then you can transfer these tokens to your Metamask wallet and begin the buying process. To buy LAND on Decentraland, you need to go to the Decentraland website and connect your Metamask wallet. At the top corner, tap the Land button. You will then see a map-like area showing land on Decentraland and you can then click on a plot you like. Tap "Buy" and get your selected plot.

If you want to buy land on The Sandbox, go to the Sandbox website and click on "Market." Then you can scroll on the left corner and select "NFT Type" before clicking on Land. The option to Buy will appear and you can select offers from high to low. Connect your Metamask wallet and bid for your offer, choosing a time frame of three to seven days. After a successful bidding process, your offer will be listed on OpenSea and you will receive your digital asset.

Earth 2 provides a different buying experience. Designed like a second version of planet earth, users of the platform can buy digital assets like lands and apartments with real money. Investors are reportedly throwing in thousands of dollars, buying tiles on Earth 2. If you want to buy an asset on Earth 2, all you need to do is to register on the platform. Then you can tap on the green "Buy Land" button. You will see a map like scenery with different units called tiles: you can then select the tiles you want and hold the # button to signify your interest to buy. After a successful bidding process, you can pay for your tiles. The good thing about buying tiles on Earth 2 is that they appreciate well, so you can sell them for a good profit.

Virtual Real Estate and The Metaverse 

Virtual Real Estate is linked closely with the Metaverse: the Metaverse provides a virtual reality platform where you can buy plots of land and create whatever you want on the plots. There are no limitations with the Metaverse: anything from concert grounds to virtual shops and art galleries can be created and developed. The virtual real estate and the Metaverse are so connected in the fact that the virtual real estate is built on the Metaverse. In addition, virtual real estate assets available on the Metaverse are also used to host events on the Metaverse. 

Imagine attending a Billie Ellish concert at a specific location on the Metaverse. The owners of the property would rent it out for a fee to the show organizers, who would in turn generate money from the sale of tickets. All you would be required to do is to tune in with your virtual reality headsets and enjoy the concert experience as if you were physically present. This is the dual advantage that the Metaverse provides, the opportunity to enjoy events without being present as the opportunity to create environments for these virtual events.

The Metaverse has been described as a concept of a virtual world in which people can connect socially. The Metaverse is a network of 3D networks sustained by virtual reality, machine learning and augmented reality. The adoption of the Metaverse by large technology based organizations like Meta has made owning virtual real estate more lucrative. As more buyers and investors put their money into the virtual real estate world, the profit from investing increases. There is therefore a rise in the adoption of the Metaverse as well as virtual real estate. The laws of demand and supply come into action and digital assets on the Metaverse are sold as Non-Fungible Tokens(NFTs) on different marketplaces.

A Beginner's Guide on Virtual Real Estate: Investing 101

Virtual Real Estate is currently lucrative for investment, especially for early buyers. Numerous investors are putting their money into virtual plots of land: for example, an individual paid up to $450,000 just to be Snoop Dogg's neighbor on the metaverse. A real estate company by name Republic Realm, reportedly spent $4.3 million on a virtual plot of land. Celebrities are becoming more invested in the Metaverse in general and virtual real estate is one of the main attractions. It is most likely that their fans will be more aware of virtual real estate and willing to invest their money into a few plots of virtual land. This is to say that the demand for virtual real estate is on the rise and if you must invest, start now.

It is of utmost importance that you do your research on the best platforms available for you to invest before you throw in your cash. Read user reviews, watch and ask questions on forums about the return on investment. You should check the different prices of plots of virtual land on the different platforms and start with the cheaper options. It is also important that you know that in virtual real estate, location determines the value of digital assets.

You should look out for choice spots that will generate the most revenue on your investment. In addition, virtual real estate is based on the blockchain and cryptocurrency tokens. This means that the market is very volatile: you should make an assessment of your investment risk level and invest with your spare cash. Access the market for signs of progress and sell when the demand is high. Make your cool cash: then you can now wear the badge of a proud beginner virtual real estate investor with pride.