Round 8
Winner
KTHouse
by

aims to make Real Estate investment available to everyone through tokenization.

Budget request:  
*
WebsiteCode

Project Stage

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Products & Services

KTHouse Marketplace
The Marketplace (under construction) give the access to the Real Estate initiatives managed and offered by the KTHouse Team: https://kthouse.co/marketplace

Real Estate Initiative
- The reference market for Real Estate initiatives is tourism and residential.
- The main features expected for the houses are:
   - Environmental Sustainability.
   - Materials with a low energy footprint - EPD certificates
   - Enery Classification nZEB - nearly Zero Energy Building
   - Renewable energy sources
   - Accessible Environment for Disabled Persons (permanent or temporary)

Each initiative will be tokenized through a dedicated Stellar Asset.

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Previous Project(s)
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Progress so far
Goals

1) Expansion of social media audience (followers)
- reach 3000 followers on twitter by the end of November 2021.
- reach 200 users on our Discord Server and our Telegram Group by the end of November 2021.  
 
2) Expansion of registered users on the website (kthouse.co)
At the moment we have 16 unique users registered, We want to reach 100 unique users by the end of October 2021.
 
3) Improvement of the project website (kthouse.co)
- Implementation and simplification of the methods of accessing the tokenization of Real Estate initiatives by the end of November 2021
- Improvement of the learning and FAQ section by the end of October 2021

4) Completion of the design phase of the first Real Estate initiative - KTH01
- Completion of technical design by mid-December 2021
- Obtaining municipal authorizations by the end of January 2022

To get there, we  will use our requested budget of  
*
  to:

1) Expansion of social media audience (followers)
2) Expansion of registered users on the website (kthouse.co). To reach goal 1 and goal 2 the sub budget amount is: $ 24000
3) Improvement of the project website (kthouse.co). To reach goal 3 the sub budget amount is: $ 14000
4) Completion of the design phase of the first Real Estate initiative - KTH01. To reach goal 4 the sub budget amount is: $ 61000

Overview

Problem and Solution


Issues about Real Estate Investments

- It takes a lot of capital
To participate in a Real Estate initiative, you need a lot of capital.
Thanks to the Stellar blockchain is possible to tokenize the costs, dividing it into many small parts (issuing a Stellar Asset exchangeable through the SDEX).
In this way the initiative is made accessible to all.

- They are not LIQUID
The classic Real Estate investments ARE FEW LIQUID, usually you have to lock your capital until the end of the initiative itself.
The KTHouse tokenization system, based on the issued of a Stellar Asset Token, allow you to exit from the initiative in any time,
simply by selling the tokens through the SDEX.

- Need for competence (to make the right choice) = High Risk
For each Real Estate initiative the KTHouse Team deals with the analysis of risks and technical and economic feasibility:
- Identification, analysis and choice of the best location.
- Technical projects development (engineering, architectural, etc.)
- Financial plan development
- Building Construction
- Sale of the Buildings

- Geographical Limits
Normally a Real Estate investor has the tendency to invest in geographic areas close to him, precluding the possibilities offered in the world. Thanks to tokenization and the small capital required, even distant Real Estate initiatives are made attractive and reachable. (eg.: a Korean citizen through the SDEX can buy a token (and therefore access the investment) of a European Real Estate initiative).


Target Market


We have identified our average user by dividing them into three demographic categories.

18 - 35 years old
these users have the following characteristics/interests:
- knowledge of blockchain technology;
- propensity to micro investments;
- great user of social media platforms;
- propensity for smart liquid investments;

Over 35
these users have the following characteristics/interests:
- possible knowledge of blockchain technology;
- strong propensity for Real Estate investments;
- awareness of the importance of investment diversification;
- good economic availability;

Over 50
these users have the following characteristics/interests:
- poor knowledge of blockchain technology;
- great economic availability;
- propensity to stable and controllable investments;

Revenue Model


The revenue is generated by the sale of the buildings.

Example of a revenue model for a Real Estate Initiative, divided into phases:
- setting up the Real Estate initiative (identification of the area, financial technical assessments, design);
- cost evaluation of the finished product (lot acquisition, technical and financial expenses, construction);
- token issue for cost coverage - to make investments accessible to all the tokens will be issued with a value in the range between 10 - 20 $;
- sale of the buildings;
- Revenue = Sale Value - Total Costs - Taxes - (Token Refund + YIELD).

If there will be a delay of a house sale, KTHouse is ready and equipped to manage a period of tourist rental.
In this case to the investors will be paid a yield equal to the rental income net of management costs until the final sale.


Market Research


   • Major global growth in house prices in recent years.
   • In the first quarter of 2021, an average increase of 7.3% per year, with 12 States and Territories showing a double-digit increase and others in retreat.
   • From the online bulletin boards of Real Estate networks, it emerges that about 85% / 90% of residential properties for sale are "old" compared to the current needs of buyers.
   • In The Wealth Report 2021, in the Residential Property and Investment Property sections, the changed and increasingly updated needs in terms of housing are highlighted, which can be summarized as follows:
       ◦ preferences for holiday locations / coastal and/or rural areas;
       ◦ purchase of houses to enlarge the main residence, for holiday houses or for relocation;
       ◦ the new house must have: outdoor spaces and easy access, the possibility of having an office in the house, easy connection with transport.
   • For real estate investors, the main investment propensities are for:
       ◦ private residences to be used for rented and for offices;
       ◦ evident less willingness to invest in commercial real estate (not housing);
       ◦ main sectors of possible investment are: residential department, logistics, development land and offices.
   • A large part of the clientele is in favor of investing according to ESG criteria and having the necessary knowledge about it.

The above coincides with the construction criteria and the living philosophy of the founders of KTHouse.
All perfectly expressed in the Real Estate initiative that KTHouse is preparing in the area available in Greece, Crete Island, Southern Coastal area.

This is an extract of the document, “Market Analysis - Properties Investments 2021.pdf”, attached in the "KTHouse - Images (other)" shared directory


Threats & Opportunities


In SWOT analysis, importance scores are assigned from 1 to 5, with 1 being the most important and 5 being the least.
From the SWOT analysis, combined with the Market Research analysis, it emerges that:
- The weakness represented by the lack of initial liquidity is actually amply compensated by the technical skills of the Team which is therefore autonomous in the early stages of study and design (Bootstrap method).
- The lack of liquidity has given the impetus to adapt blockchain technology to the Real Estate market (tokenization).
- There is a strong expansion in the demand for houses in tourist areas for medium/long-term residences to be used also for smart working.
- The area chosen for the first intervention KTHouse (KTH01, KTH02, KTH03), is strategic for the proximity of the new airport under construction which increases the tourist interest for the area.
- The possible threat of tightening adverse regulations to blockchain / tokenization is certainly mitigated by the functions offered by the Stellar blockchian, close to the additional regulatory requirements that could be introduced.

If there will be a delay of a house sale, KTHouse is ready and equipped to manage a period of tourist rental.
In this case to the investors will be paid a yield equal to the rental income net of management costs until the final sale.


Competition


The Real Estate market is large, varied and complex.

The great majority of operators operate through investments based on traditional banking systems.
Participating in these investments requires substantial capitals (> 100 k$)
and are therefore generally aimed to customers with medium / high capital.
They are normally illiquid.

Recently, new companies have emerged that use the blockchain network to tokenize Real Estate properties
in order to distribute rental profits.

Examples:
- RealT (realt.co) mainly aimed at the US Real Estate rental market.
They buy and tokenize existing properties.
Their tokens are offered at a price of 50 $ (averange) and are exchangeable
through decentralized exchanges based on ethereum (eg. Uniswap).

- Smartlands (smartlands.io) based on Stellar blockchain, it is a platform that provides the tokenization service of third-party Real Estate assets.

- KTHouse offers are based on the tokenization of residential tourist properties to be built for sale.
Our Team takes care of the conception of the Real Estate initiative and the subsequent realization.
Our mission is to democratize access to tourist / residential Real Estate investments.
The KTHouse Real Estate initiatives tokens (at the moment not minted: KTH01, KTH02, ...) will be issued with a value in the range of 10 - 20 $



Marketing & Sales


Increase the presence and visibility on social media (Twitter, Telegram, Discord, Reddit) by publishing content related to:
- explanation of the functioning of the tokenization system
- explanation of access to the Stellar blockchain (to reach even the less experienced user range)
- preview of the projects relating to the real estate initiatives offered

Use of social media as channels to relate directly with our users to:
- questions on the modalities of tokenization
- questions and clarifications relating to real estate projects
- direct support

The KTHouse web site (https://kthouse.co) will be improved to make it easier for visitors to access the tokenization of our real estate projects.

The section of the website relating to real estate projects ("Marketplace") will be expanded with functions that will allow visitors and customers to have greater awareness of the progress of construction works (webcam, timelapse, photos, etc.).


Resources & Relationships


- Integration of our tokens into Discord BOT "Crypto Link" by Animus that permit the exchangeability of the tokens between Discord users

- Creation of NFT tokens (linked to Real Estate initiatives) on the Litemint platform (kthouse.litemint.store)



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Links:

Main website - Ledgerads.com
Previous project - Ethereumads.com
Github



Team

Alberto De Checchi
Founder - Developer and Blockchain Enthusiast. I'm an Aerospace Engineer and a Senior Firmware/Software Developer.
 
Roberto De Checchi
Founder - Real Estate Expert. I have more than 30 years of experience in real estate initiatives and construction sites management.
  
Maria Rosa Principe
Founder/Advisor - Professional Architect. Expert in urban planning and construction. I'm passionate about nZEB buildings and in tune with the environment. My mission is: "Bringing emotions to life in the spaces designed and built".