How to Buy Real Estate in Metaverse: A Beginners Guide
I’ll not hide my excitement about this topic, because I’m sure that virtual worlds and Metaverse are going to change our world and or our lives. So, if you are interested like I prepared a simple guide to help beginners to buy real estate in the Metaverse. I will also explain how to earn in the Metaverse with a real estate business. I didn’t write a lengthy post, so if you want quick answers and want to be prepared when entering a VR world, this is for you.
Table of Contents
Steps for Beginners to Buy Real Estate in the Metaverse
Many investors are looking for investment opportunities in this fast-growing new world. We have an opportunity to purchase virtual real estate in top Metaverse worlds (yes, it’s a little bit complicated as there is not only one Metaverse). If you want to enter the Metaverse, you should know it is democratized, with no single organization, person, or entity controlling it. Anyone can invest in it and utilize the available space, technologies, and settings. But be aware that it’s a newly developing reality without many regulations, and I’m not sure how it will work out later. So, before you read or decide to invest, dig deeper and do more research.
So, here are some steps for beginners to buy real estate in the Metaverse:
1. Create a Digital Wallet
Firstly, create a digital wallet. It’ll allow you to get virtual land using the appropriate currency. You won’t be able to buy digital real estate with actual money, so you need cryptocurrencies to get started. Cryptocurrencies are not interchangeable. For example, the money of Decentraland is MANA, and for Sandbox, it is SAND.
Note: When you open your wallet, remember the key you’re given. Consider this information to be your “virtual bank account.” You should memorize it as it’s very hard to restore, but never share it with anyone else
2. Select a Purchasing Platform
When it comes to purchasing land, you have two options to choose from:
- You can buy the property directly on a metaverse platform (Decentraland, Sandbox) or
- Through a third-party platform(OpenSea and NonFungible.com).
For beginners, I recommend using third-party sites as they allow you to examine the ROI of your investments.
3. Consult a Metaverse Real Estate Agent
The Metaverse has its real estate sector with mortgage brokers and agents. Brokers like Tal and Oren Alexander are carving out a niche for themselves even now. They deal with the increased real estate acquisitions in popular US cities. They declared they would operate as brokers for luxury properties in the metaverse.
4. Choose a Piece of LAND
Next, choose the real estate which you like. Perform some research, dig deeper, and compare it with other similar lands before making a final decision.
Now click on the ‘Buy’ button, and it’s yours!
5. Confirm Your Purchase
The last step is to confirm your purchase in your wallet after the transaction is finished.
What to do if You Don’t Have Cryptocurrency?
If you are a complete novice in the industry and don’t know what cryptocurrency is, where you can buy it or use it to invest in the metaverse, don’t worry. Here are some steps to give you a general idea:
- Choose a store and payment method
There are a number of secure ways to buy different cryptocurrencies. But the centralized exchange is likely to be the most accessible for beginners. Centralized exchanges are operating through a third party that regulates transactions. This means there is almost no risk of a cyberattack.
- Increase the value of your account
The majority prefer debit and bank transfers. You can also use a credit card. If your investments lose value it can be a hazardous decision. This is because interest rates can compound your losses.
Another thing to keep in mind is that exchange fees differ based on what you’re buying and how you’re buying it. So double-check your decisions. If you’re more experienced, you might consider existing crypto holdings. For example, Bitcoin for Ethereum.
- Choose a cryptocurrency.
Numerous cryptocurrency investment possibilities are available, but you should choose the suitable one. If you want to do transactions using cryptocurrencies to create decentralized apps, then you are on the right path.
- An alternative step if you don’t have enough crypto to buy real estate in the Metaverse is to get a Metaverse credit. It may be more cost-effective for normal buyers, and Metaverse credits meet rarely. Only a few organizations offer this service. Terra Zero is one of the companies on the market that allows users to buy land on the ‘Big Four’ Metaverse platforms. Read further to find out more details.
How to Calculate the ROI of Your Investment in the Metaverse?
Return on investment (ROI) is a performance measure that is used to analyze an investment’s efficiency and profitability. To calculate ROI, we should divide the benefit (or return) of investment and the cost of the investment:
ROI= Current Value of Investment−Cost of Investment: Cost of Investment
This formula will help you to calculate your expenses while investing in Metaverse. The math itself isn’t difficult, and it’s simple to interpret: if the return on investment (ROI) is positive, the investment is beneficial.
What Should You do After Buying a Metaverse Land?
As you have completed all the above mentioned steps, it’s time to realize what your next step will be. Where will you use the land in Metaverse? Here is what you can do as a virtual property owner:
- Rent billboard or banner spaces for advertising
- Rent it to other people or businesses
- Use it as an office for your Metaverse business.
- Start your Metaverse business like a virtual cafe, shop, cinema, restaurant, etc.
- Build offices for rent
- Build houses
- Resell it when the prices are high
What is the Most Popular Real Estate Metaverse?
The so-called Big Four own the vast majority of metaverse real estate: Decentraland, Sandbox, Somnium Space, and Crypto Voxels. These platforms own 268,645 plots, many of which are among the most expensive on the market.
Decentralization is an open-world metaverse. You can buy the land on Decentraland. It enables you to tap into the imaginations of gamers throughout the world. While exploring, engaging, and playing popular games, you can buy and sell digital real estate. Due to the platform’s growth, users may use interactive apps, in-world payments, and peer-to-peer chat.
You’ll have an opportunity to play on a 2D screen. The virtual world encourages creative digital ownership notions. It includes online museums where users can display NFTs. Decentraland has three native tokens:
- ERC-721 token represents merging parcels of digital land
- MANA is an ERC-20 token (official currency)
Tokens under the ERC-721 standard are not interchangeable. You can use them to create unique in-world items like avatars, wearables, and land parcels.
You can engage in the in-game economy by purchasing and/or exchanging digital art with other platform users. Participants in Decentraland have some direct power over the platform’s rules. Other virtual reality games don’t allow this. As a result, consumers can directly vote on the game and the company’s policies.
The Sandbox is another metaverse platform that has shown early success. It is a community-focused metaverse built on the Ethereum blockchain. It also has its in-metaverse coin, SAND.
LANDs, a sort of a digital real estate in the form of an NFT, are also available on The Sandbox. The users can buy, sell, or rent out LANDs. Sandbox users have complete control over the creation of their games and universes.
In December 2021, SoftBank also invested US$93 million in The Sandbox.
Somnium Space is an open and social virtual reality built on the Ethereum blockchain. Users can buy land, construct or import items, and enjoy or monetize their assets right away. Worlds on Somnium Space are completely programmable, customized, and provide self-contained VR experiences.
As it’s an Ethereum software, it allows users to tokenize in-game assets, including land parcels, avatars, collectibles, and wearables. ERC-20 token serves as the native utility token for the Somnium Space platform. Players can store ETH, CUBE, and NFTs in an Ethereum wallet (ERC-721 tokens).
Crypto Voxels is an Ethereum blockchain-based virtual world where you can buy parcels of land. There are only 7613 parcels minted.
The owners of parcels can build whatever they want on their property, and add and delete blocks (voxels) and features. They may also turn their parcel into a sandbox parcel, which allows anyone to build on it.
Is Real Estate in Metaverse a Sound Investment?
We’ll explore the possible states in the Metaverse. Then it’s up to you whether to do the next step or not. Consider these two points:
- Take a realistic look at the Metaverse
There are endless possibilities for where the metaverse might go. The rise of new virtual worlds is a continuous process. The value of digital real estate functions similarly to that of physical real estate. You can buy a house, go shopping and interact with people. There are a limited number of pieces of property in virtual lands. The price of that property varies according to supply and demand.
- Consider the Return on Investment (ROI)
Grayscale estimates that the metaverse’s goods and services will reach $1 trillion. But there are two questions. You might wonder what the metaverse’s trajectory is and if is there room for it to expand. Is there room for it to expand?
Although you cannot find a clear answer to your question, you can do some research and check its development and growth curve and its future predictions. Based on the collected information, you should make the final decision. But remember that it’s a business, and every business has its risks.
How Much Does Real Estate in Metaverse Cost?
Metaverse real estate prices depend on the platform you want to invest in, the size of the property and its location.
Which Cryptocurrencies are Used in the Metaverse?
Based on the Metaverse platform, you can use different cryptocurrencies, like:
- Sandbox (SAND)
- Axie Infinity (AXS)
- Decentraland (MANA)
- Enjin Coin (ENJ)
Floki Inu (FLOKI)
The list is not short, so if you want to check them all, you will need to perform deeper research.