While the metaverse has grown in popularity, virtual land sales have seen a surge in recent months. Virtual real estate has become more expensive in compared to a year ago, with virtual properties from a couple of blockchain metaverse initiatives selling for seven figures. With the cost of virtual real estate skyrocketing, one company, Terrazero Technologies, is offering metaverse mortgages.
Terrazero offers Metaverse Real Estate Loans to People Interested in Purchasing Virtual Land and Homes.
People are currently using their crypto holdings to purchase metaverse properties, making virtual real estate a popular commodity. Virtual land tracts been sold for hundreds of thousands, if not millions, of dollars in projects such as The Sandbox, Axie Infinity, and Decentraland. A few million-dollar sales in metaverse blockchain worlds in November of last year. For example, at the time of settlement, eight plots of virtual Axie Infinity land sold for 888 ether, or $1.5 million.
During the first week of December, virtual land adjacent to Snoop Dogg’s metaverse residence in The Sandbox sold for $450,000 in ethereum (ETH). According to a survey issued by the metaverse analytics business Metametric Solutions, metaverse real estate transactions are expected to hit $1 billion this year. Terrazero Technologies, a new project, is now focusing on providing home loans to customers interested in acquiring virtual real estate. According to mpamag.com, Terrazero has finalized its first metaverse mortgage for a client wishing to finance the purchase of virtual land.
Terrazero announced the completion of its first-ever metaverse mortgage transaction using land from the Ethereum-based virtual world Decentraland. The buyer agrees to the terms and makes monthly payments until the loan is paid off, just like a traditional mortgage. Dan Reitzik, CEO and Founder of Terrazero, explained to Andrew Martinez of National Mortgage News (NMN) that the deed is a non-fungible token (NFT).
“We do KYC, or Know Your Customer,” explained Reitzik. “Then they show us a business plan so we know they’ll be able to pay us back over time.” If it is feasible, we will purchase the land on their behalf.” Terrazero’s creator went on to say:
The transaction is effectively an NFT. We keep it in cold storage at the company until the debt is paid off. However, we grant developer rights to the land so that the individual can build whatever they want. If the customer fails to pay, we certainly have that as collateral.
Terrazero’s metaverse mortgage followed the sale of a Gulfport, Florida, home as an NFT. In addition, a project called the One DAO is aiming to buy the infamous property known as The One Bel Air in a similar manner. Terrazero’s CEO revealed to NMN during the interview that the company is working with an unknown financial partner. Amadea, a metaverse real estate portal, is also being launched as part of the project.