HomeToken plans to invest in Asian real estate to generate profits for token holders. Here’s our review.
What Is HomeToken?
HomeToken, found online at HomeToken.io, is a digital token that represents a stake in a real estate investment fund. The company plans to deliver an ROI by investing in “carefully selected real estate located in Asia’s emerging markets.”
At the same time, the developers will invest in nursing homes to meet the rising demand for elderly care. In fact, they’ve already launched their first nursing home, which opened in September 2017. The company also plans to buy small apartments catered to young professionals and students.
Overall, HomeToken wants to “democratize property investments and make the world a better place for our golden generation.”
The ICO began in early October and continues until the end of the month.
How Does HomeToken Work?
HomeToken isn’t a traditional blockchain company. Instead, HomeToken is a real estate development company. They’re seeking to raise funds through an ICO, and those funds will be put towards developing real estate in emerging markets throughout Asia.
The developers believe that high economic growth and a growing working-age population will increase real estate rents and prices in the near future.
HomeToken also claims that their properties will deliver profits “within months”:
“Unlike most initial coin offerings(ICOs), HomeToken will not risk millions to develop technology that may take years to reach profitability and public acceptance, if successful. Profit from HomeToken's investment properties will be generated within months.”
HomeToken’s developers are particularly focused on Malaysia and Vietnam, both of which have high GDP growth (over 5%) and above average population growth. HomeToken believes that real estate in these countries is under-valued when compared to real estate in North America and Europe.
The company launched its first elder care facility, “The Mansion”, in greater Kuala Lumpur in September 2017.
They plan to continue investing in properties across Malaysia and Vietnam. However, the greater Kuala Lumpur area is the company’s initial area of focus. Specifically, they’re looking at two types of residential properties in the region:
Apartments Ranging from 250 to 1200 Square Feet in Size: These small apartments will be located in matured and established areas of Kuala Lumpur. Apartments will be within walking distance of rapid transit systems, hospitals, educational institutions, shopping complexes, and more. These apartments are targeted towards students and young professionals. HomeToken will only invest in apartments that are completed and prepared for tenanted renting.
Privatized Nursing Homes: The HomeToken whitepaper claims that waiting lists for private nursing homes in Kuala Lumpur have risen dramatically. Nursing homes are unable to meet the demand. That’s where HomeToken sees an opportunity. Nursing homes will be professionally managed by a HomeToken affiliate called CARE Concierge.
HomeToken advertises the following features:
Low Risk: Real estate is a conservative and safe investment. HomeToken claims that they’ll only invest in completed real estate from established property developers.
Profitable: HomeToken will use its market knowledge and experience to maximize rental income and capital appreciation. As profits rise, the price of HomeTokens will increase.
Tangible: The value of HomeTokens is backed by a tangible asset – real estate.
Transparent: All investment properties purchased by HomeToken will be documented on YouTube individually. The company aims to provide transparency to investors showing that the properties do genuinely exist.
Lower Entry Costs than Traditional Real Estate: You can buy tokens that represent real estate without actually buying properties in Asia.
Lower Transaction Costs: HomeToken claims that the only fees it charges are the transaction fees imposed by cryptocurrency exchanges where HomeTokens are listed. In comparison, real estate agents charge commissions of 2% to 6%.
The HomeToken Token Sale
The HomeToken token sale began in early October and continues until early November. You can buy tokens at a price of 1 USD = 1.2 Home Tokens.
A bonus of 20% is available from October 1 to October 14, and a bonus of 10% is available from October 15 to October 31.
There’s a total supply of 100,000,000 HOME tokens. The tokens are Waves-based tokens. No tokens will be issued at any point in the future. 65% of the tokens will be sold in the token sale; 20% will be allocated for future partnerships and joint ventures; 10% is retained by the HomeToken team; and 5% is allocated for future marketing campaigns.
The ICO soft cap is $1 million USD.
Who’s Behind HomeToken?
HomeToken’s development team came together in March 2016. By August 2017, they had launched the HomeToken website while also launching “The Mansion”, an elder care facility. By March 2018, they aim to complete renovations and start generating rental income from properties. A token buyback will begin in October 2018.
The company is led by Andrew Yap (Founder, Business Development), Razman Sarit (Chief Technology Officer), and Martin Yap (Chief Operating Officer).