When my family moved to Florida a year ago, it was a painful process to get into the housing market.
We were moving from South Carolina to the Sunshine State, but we had to do a lot of things over the phone and sight unseen.
First, we had to find three or four places we “might” want to live that we thought we could afford.
After that, we went through a long application process where we sent any number of documents verifying income, proof of life and birth certificates of our firstborn.
All-in-all, it took about two weeks of phone conversations, verifying various pieces of information and other back-and-forth minutiae until we finally found a place and made the move.
But it got me thinking … isn’t there an easier way?
Actually, there is.
Buying and Renting: No Pain, No Gain
Right now, when you try to break into the housing market, either through buying or renting, you have to go through a pretty extensive process before you even move in.
If you’re renting an apartment, you have to put down a deposit, mainly because the landlord doesn’t trust you because they don’t know you.
In most cases, it’s the rent for the first and last months. That can cost you a pretty penny.
Then you have the credit check … which can be a whole other story.
To say there is a lot of distrust and complexity would be a gross understatement.
In the end, if it all works out, you get a place to stay. If not, you are back to square one and you have to start all over again.
It’s a painful process that, if successful, gains you a home. But if not …
One Simple Solution to This Housing Market Problem: Blockchain
What Mampilly suggested to fix this housing market problem is actually quite simple in its nature.
It’s called blockchain.
Blockchain is the record-keeping technology behind the Bitcoin network. Its name is exactly what it is — a chain of blocks. More simply, it’s digital information (the block) stored in a public database (the chain).
It’s the perfect solution to all of the processes and verifications you go through to buy or rent homes, buy cars, etc.
“All your pieces of information and all the things that verify who you are, what your income is and what your rental track record is, any deposits that can secure your claim that you are able to pay for this apartment — that’s a huge deal,” said Mampilly, the Editor of Profits Unlimited.
It also works the same way if you are buying a home, even though there are a few more components to that.
But the process becomes much easier.
“You remove so much of the complexity,” Mampilly said. “By removing complexity, you also remove all the issues of distrust, which has the ultimate benefit of reducing the cost. Closing costs can represent as much as 3% to 5% of the house’s value. When the average price of a house might be $200,000 to $250,000, we’re talking about some serious money here.”
It will take far less time to get into the housing market by using blockchain technology. More importantly, a lot of the headaches associated with compiling all the information you need will be alleviated because it’s already stored.
Using blockchain is going to revolutionize how we make these life-altering decisions and purchases.
“I can tell you that when you look out five, seven or 10 years from now, you will wish that someone told you this was going on and that you had done something about it,” Mampilly said.
Now you know.