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Originally Posted On: https://contracoin.network/global-real-estate-transaction-challenges/
Contracoin is the ambitious venture of Contracorp Limited and strives to establish an International Real Estate Platform for global crypto-investors. Using Contracoin, an Ethereum based crypto-currency, we aim to streamline overseas property transactions and overcome the challenges observed in cross-border remittances. Investors will benefit from the elimination of the complicated banking process and excessive fees involved with international property transactions. Some of these Global Real-Estate Transaction Challenges are:
Transaction Challenges of the Global Real Estate Sector
Not having Direct Access to a Suitable Foreign Banking Partner, businesses with overseas clients have become a common phenomenon, making global money transfers a necessity. In such situations, the most common method used by investors is availing bank services. However, finding a suitable banking partner is not always an easy task, owing to various reasons. First, it is not necessary that companies will find their existing bank partners active in other countries. Even if global coverage is provided, setting up services with the overseas banks can take a lot of time and effort, as a result of meeting local regulations and setting technical connectivity.
Disruptive Government Restrictions
In spite of reduced complications in global transactions, many governments worldwide still impose restrictions on foreign exchange payments and possession of foreign currency.
Enhanced Costs due to Hidden Fees
Institutions like banks and money transfer operators charge for global transactions fees. On average, cross-border remittances cost $14 for transferring $200, which includes sending and receiving fees combined with exchange rate margins. In 2017, the total aggregate cost for cross-border remittances had reached a massive value of US$30 billion. One of the reasons for this high transaction costs is the hidden fees charged by banks, which are represented as unfavourable currency exchange rates to customers.