Current Market Problems
With its ambitious goals, Fundi Finance adresses a bunch of real-world-problems that the market is confronted with:
Real estate is only liquid at the point of purchase or sale and often results in the loss of ownership
Real estate investment is very corporate in the global markets. The thresholds for entry are high, and the amount of immediate capital liquidity is limited. Retail investors often find the process challenging and out of the price range to the threshold, therefore resulting in the limited discovery of suitable developments.
In 2020, the Global Market Cap was around $700 million and a good percentage of it was used for real estate transactions. The average fee ranges from 5 to10 %; the average transaction can take five days and even longer for large sums.
The cost of real estate sales or management costs are often between 6- 10% of the property value, with average commission at $7,000 for a $300,000 real estate asset. In some cases, there is an additional 5-10 % fee for money transfer.
Real estate is still heavily burdened with reliance on private markets, where there is no public or decentralised exchange for assets, and evolution has stagnated. In effect, this gives little price discovery and often constricts sales or investments within a very small geographic vicinity for an asset.