How to Buy Property Tokens

Read in 2 min

Buying property tokens is simple when you follow a clear sequence and use conservative assumptions.

Start by creating an account with a reputable provider and completing KYC/AML. This unlocks compliant offerings and prevents delays later. Build a watchlist of several assets across regions and property types so your allocation isn’t concentrated.

Read the offering documents carefully. Focus on terms, fees, transfer restrictions, reporting cadence, and the issuer’s responsibilities. Document any open questions and ask for clarification before committing capital.

Measure net yield using realistic inputs. Start with gross income, subtract fees and expected costs like maintenance and vacancy, and annualize the result. Compare across offerings on net yield and liquidity rather than headline APYs.

Size positions conservatively. Set maximums per asset and per theme, and prefer small initial positions while you learn the venue’s liquidity profile. Plan execution windows and use limit orders where available to control spreads and slippage.

Define an exit plan early. Set rebalancing cadence (e.g., quarterly) or threshold bands, track alerts on yield and material updates, and avoid forced exits. Keep records of trades, theses, and reviews so you can improve the process.

Steps you can follow today

  1. Create an account and finish KYC early. It removes friction when you decide to allocate.
  2. Build a watchlist across regions and property types. Aim for balance, not perfection.
  3. Read offering docs line by line. Note fees, transfer rules and reporting cadence.
  4. Estimate net yield with conservative vacancy and cost inputs. Compare on net yield and liquidity.
  5. Size positions with caps per asset and theme. Start small while you learn venue depth.
  6. Execute during liquid windows. Use limits where available to control slippage.
  7. Track results, rebalance on a cadence or threshold band, and document outcomes.

Common mistakes to avoid

  • Chasing headline APYs without checking spreads and depth.
  • Concentrating in one region or asset type.
  • Ignoring transfer restrictions or reporting cadence.
  • Using optimistic vacancy or fee assumptions.

A simple example

Pick three vetted offerings with transparent docs. Allocate small positions across logistics, rentals and mixed use. Use a quarterly review to check net yield after costs, liquidity and any material updates. Adjust sizing slowly and keep notes so your process improves.