WHAT IS MPV TO HOMEBUYERS?

WHAT IS MPV TO HOMEBUYERS?

Before we share “What is MPV to you as a HomeBuyer?”, let us build a general opinionated approach to the profile of HomeBuyer in today’s context.  

In general, there are three main category of home buyer in today’s market :- 

* First Time Buyers and those in rented space. 

* Second Time Buyers who are funding the purchase of  their dream home with cash from the sale of their previous home. 

* Buyers who are buying outright using cash, often they are Investors. 

HOMEBUYER PROFILING

Yet, within these three main categories of homebuyers, there are 5 distinct profile which we can identify to understand how they are impacting the real estate industry and market globally in today’s 21^st Digital Century ………..

These groups have been candidly and colourfully named and identified as: 

i)              “Wannabe Newcomers”;

ii)             “Have Been There, Have Done That”;

iii)           “Experienced Marathon Runners”; 

iv)            “Vogue Aficionados”; & 

v)             “Wait and See”.

“Wannabe Newcomers” are those home buyers that buy out of fear and afraid of being left behind…. if they don't immediately get a foot on the property ladder. They possess a strong desire to own their own home and in general are optimistic about the property market and their investment within it. However, they do consult with family and friends before making a purchase and do their research through the media before committing themselves to buying.

"Have Been There, Have Done That" home buyers who have bought and sold before and use their own past experiences to shape their purchases. Many of this group believe that prices could fall, but counter that threat by believing that owning their own piece of property is more important than making financial gains.

“Experienced Marathon Runners” who are investing in property for long-term financial gain. This group of home owners is most likely to be looking at buying property for pension purposes i.e. taking the capital gain once they retire to fund their lifestyle. They will take their time deciding over purchases and are less likely to be swayed by media stories of boom or bust.

“Vogue Aficionados” home owners, however, are most likely to believe in media reports about the future of the market and will invest if they see others doing the same. They are trend followers as opposed to trend setters, and they are the least most abundant of the five groups.

Finally the “Wait and See” home owners are usually waiting on the side-line of the property game. If they see prices fall, they will make a move as they believe that the long-term trend is always upwards but want to maximise their short-term gains at the same time.

The above honest and yet candid profiling of home buyers, like you and me, is to focus on how we decide to purchase residential properties, but stopped short of examining what motivates people to acquire additional properties such as or why they opt to enter the 'buy-to-let' market. This discussion solely examines on how people consider residential property purchase and how they form their expectations of future house price movements. It suggests that those buying property give great consideration to a range of factors and enter the housing market with their eyes wide open.

What is MPV to Homebuyers?

MPV’s (Master Property Value) Vision is to bring new value into the real estate industry, helping more people to easily participate in buying or investing in properties through a revolutionary digital platform that opens up a whole new world in real estate investment.  Whilst MPV’s Mission is to provide a digital asset platform built on blockchain technology that connects more people with quality real estate from around the world, so that everyone has the opportunity to own real estate with ease.

What this mean is that MPV is using blockchain technology implementation to bring innovative solutions to help homeowners to soothe numerous pains and challenges of the real estate. And once there is a mass adoption of new blockchain technology, it will only move the real estate market to the next level in the near future.

Different Homebuyers profile will have different perspective of pains and challenges. Nonetheless, MPV is able to address these different homebuyers profile accordingly through the following advantages:

#1 - Faster transactions and fraud mitigation

MPV uses blockchain to create, authenticate and audit contracts in real-time, across the world and without intervention from intermediaries through smart contract. With the blockchain, all the real estate deals — be it rent or sale — have digitally signed agreements. Smart contracts contain terms rooted in the transaction so that payment can only be taken as long as the contractual terms are met. MPV emphasizes that “Smart contracts eliminate the need for manual work and conditions and It is not only to improve the efficiency of operations but also to prevent unforeseen circumstances”- meaning that once the property transaction deal terms are embedded in the smart contract they become immutable. This means MPV is offering security and confidence to homebuyers. 

#2 - Increased liquidity due to tokenization

Tokenization of real estate will enable buyers to buy fractions in properties worldwide. Therefore, we expect that with tokenization, owners of the expensive property will be able to quickly sell their assets free of “urgency” premium.  For smaller investors, tokenization will see the opportunity to diversify their global real estate portfolio with a small ticket. Thus, the blockchain-enabled primary issuance of real estate will add liquidity in the intrinsically illiquid market, yet, easing the access for best-in-class real estate sponsors worldwide. 

#3. Land titles transfers

The blockchain technology has the potential to substantially cut the traditionally lengthy process of recording and transferring titles, with the added transparency. With the implementation of the distributed ledger, the ownership transfer and record will be operated digitally. The benefits of this are already recognized by national authorities worldwide and more and more governments are looking to implement the blockchain deed. MPV has full support from the Malaysia Government. As a matter of fact, there are three licenses being offered by Malaysian Government to MPV to legalize the blockchain technology platform in Freehold Properties Projects. To the homebuyers, this means that all purchases or agreement to purchase from the freehold development from MPV is 100% legitimate.

#4 - Elimination of intermediaries

Agents, appraisers, notaries — transactions in real estate are usually associated with the whole bunch of intermediaries. Using blockchain, the overwhelming part of them can be eliminated. This will allow to substantially eradicate the fees and charges that would normally go to intermediaries. Almost fifty percent of the price of the property when selling or buying can result in significant cost and time savings.  

To homebuyers, MPV is able to offer cost savings when purchasing a Freehold Property.

written by: Stervey Lim