The new digital reality: how to buy a share in real estate in Bali and generate income
18 June 2025 13:27
ANALYSIS
The latest digital technologies also create new opportunities. And this applies not only to businesses but also to ordinary citizens, who, for example, have the opportunity to invest in digital assets and earn income. "Komersant Ukrainian" found out how you can buy a part of a house somewhere in Bali, how safe it is, and what technologies allow you to do it.
Ukraine has a Law on Virtual Assets, but it should come into force only after the specifics of taxation of transactions with virtual assets are defined by law. In other words, as lawyers explain, there is no direct prohibition on ownership of such assets, but this issue is simply not sufficiently regulated. And Ukrainian business, adopting the relevant experience from technologically advanced countries, is already using digital tools, for example, to dispose of physical assets that until recently were physical assets, which in the process of tokenization become digital assets.
What is the tokenization of assets in general and real estate in particular?
In a nutshell, asset tokenization is the process of converting a physical asset into its digital counterpart, digital tokens. And this makes assets, including real estate, more accessible to investors, including those who previously, due to limited financial resources, could not invest in traditional real estate.
Nazar Fil, Associate of International Corporate and Fintech Practice at Prikhodko & Partners, explains further.
“Real estate tokenization is digitalization, the transformation of rights to real assets, in particular, real estate, into digital tokens. Here’s an example to make it clear. For example, we have one hectare of land, and we divide it into a thousand shares, which are, in fact, a thousand tokens. And how many shares I own, respectively, is the percentage of rights I have to this object,”
– says Nazar Fil.
But, as he emphasizes, only one country has created a legislative opportunity for such a transaction. It is about the registration of such an organizational and legal form as DAO LLC (Decentralized Autonomous Organization Limited Liability Company) in the state of Wyoming (USA). The legal model developed there allows for the use of a similar legal format.
For example, a businessman from Germany registered a company of the appropriate legal form in Wyoming, then bought a hotel or a house in Germany and put this tokenized, i.e. digitized, real estate object divided into a thousand token shares for sale. And anyone around the world can join in and buy a share, become a co-owner, and then earn income from this hotel. It’s the same with buying a share of an apartment, which will then be sold or rented, and this will also generate income for local investors.
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What are the advantages of this digital approach?
Tokenization of real estate, or the division of real estate into digital shares, creates new opportunities for both those who want to sell them and those who are ready to buy them. This includes, for example, the ability to invest in properties located in other countries. In addition, those with limited financial resources can join the investment.
As lawyer Nazar Fil emphasizes, access to investment is greatly facilitated and expanded.
“When we talk, for example, about investing in Ukrainian business, a foreign investor needs to go through a long legal procedure to do so: assess the banking segment, legislative history, and only then invest. It is difficult for a middle-class person to invest in any projects abroad, or in any projects at all, because they have limited capital. Therefore, asset tokenization simplifies access to investment objects for both large and small investors. Some platforms set a minimum investment amount of $50, some slightly higher,”
– explains the expert.
In addition, as Nazar Fil notes, since all this happens in the blockchain, in a distributed ledger, the investor’s rights are more protected here than securities held in a bank or brokerage account: no one can steal the tokens that a person owns due to the very nature of the blockchain.
How to invest in tokenized real estate
The Binaryx platform, for example, provides an opportunity to purchase a share in a specific real estate property in Turkey, Indonesia, or Bali.
In fact, according to lawyer Nazar Fil, there are many platforms that provide tokenization services. First of all, these are foreign platforms. But in Ukraine, there is, for example, the DiFundGate platform, which deals with the tokenization of assets/business. It is actually an analog of Binaryx. According to the expert, the Binaryx model is understandable and has the right to exist.
Binaryx offers to invest in residential real estate under construction or for rent, and promises passive income: somewhat delayed from the sale of real estate, and faster from rent. Promised yield: from 8 to 31% per annum in US dollars. Moreover, and this is primarily what those who use the platform’s services are paying attention to, the minimum investment threshold is currently only $50.
During a telephone conversation, the platform explained that a company is indeed registered in the United States, which allows for a type of management where all investors have equal rights. And this is for each object of the real estate being taxidermied. When a person invests, he or she becomes a shareholder of this company. There are also digital contracts – smart contracts. As Binaryx emphasizes, they reduce bureaucracy and increase reliability because they cannot be forged.
Are there any risks of investing in tokenized real estate?
Nazar Fil advises to research everything carefully before making a decision to invest.
According to his observations, crypto users often tend to invest in some tokens without sufficient analysis of the company, and this is sometimes accompanied by certain problems and losses. Therefore, if a company offers any investment services, is registered and actively operates, the investor should first of all investigate it.
“There is a basic rule in the crypto asset market – DYOR (Do Your Own Research), which means you should always do your own research. You saw somewhere in Telegram information about a tokenized asset and the purchase of a share of real estate. You should definitely do your own analysis: who exactly is offering what, study the reviews written about the company and its service by independent media, analyze user reviews, for example, on platforms such as Reddit – there is a lot of information there. And if there are no negative reviews, this is already an argument in favor of participation,”
– the expert notes.
As for the other options, the lawyer explains that it would be worth doing some legal research, especially if it comes to investing large sums.
“Lawyers can find out from the registers who the beneficial owners are, what capital they have, what their business history is. And this way you can protect yourself,”
– says Nazar Fil.
Of course, there are also so-called market risks, such as price fluctuations and other objective and subjective factors, from which any businessman or investor is not immune. But the main idea and rule is not to invest in something you do not understand and are not familiar with.
Therefore, real estate tokenization opens up new horizons for investment, making the global real estate market accessible even to investors with small capital. This technology allows you to diversify your investment portfolio, receive passive income from renting and selling real estate around the world, and take advantage of blockchain technologies to protect property rights. With the development of legislation in the field of virtual assets in Ukraine and globally, tokenized real estate can become an important tool for democratizing investment opportunities.
However, as with any investment, tokenized real estate requires careful analysis, platform research, and an understanding of all the associated risks.
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Sergiy Vasylevych
