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Housbit for Investors

Housbit simplifies and automates everything related to investing in real estate in a virtual environment which is protected within a residential trust and provides a good rate of return. Because the investment lies withing the trust, no sales tax or typical closing costs are payable on new construction, providing added value. And because of the nature of the trust structure, no income tax is payable on cash flow or capital gains until an investor exits the trust meaning that Housebit is an excellent vehicle for tax deferral on real estate investment.  Furthermore, Housbit takes care of identifying purchasers and all aspects of managing the properties.

 

The mechanism is simple:

A property is first “encapsulated” where the deed is transferred to residential trust by a builder (or owner of the property as the case may be).  The builder becomes the effective beneficiary of the trust and the investor becomes the trustee. The advantage of the mechanism is that the property remains in the trust as a “capsule” and the capsule can be held, traded or otherwise sold as a commodity without the usual complications of real estate transactions such as legals, deed transfers, transfer taxes etc,

Encrypted ownership

For Investor security and to facilitate property transfers, all Housebit properties will have their own encrypted ownership private key. This key, known only to the Investor, will allow the Investor to transfer ownership within the Housebit system to another Investor as the key will be proof of ownership.

This easy transfer mechanism again eliminates legal costs, deed transfers and time delays.  Tax consequences would be as with any other investment and based on the difference between the investment cost and cash accrued over time and the transfer price.

 

The Housebit Dashbord

Each property will have its own Housbit dashboard  accessible by Investors and Buyers which will have comprehensive information on their property including:

  • Current estimated market value
  • Details of operational costs
  • Payment due dates

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