RealT has been at the forefront of real estate tokenisation since 2019, offering fractional ownership of US rental properties with minimum investments starting at $50.
How It Works
- Properties are purchased by RealT LLC
- Each property is tokenised into tokens representing fractional ownership
- Rental income is distributed to token holders in USDC on Gnosis chain
- Tokens can be traded on the secondary market
Yields
RealT properties typically generate 5-12% annual returns from rental income. Some properties also appreciate in value, which is reflected in token prices.
UK Tax Implications
- Rental distributions are treated as foreign property income
- CGT applies on token sales
- US withholding tax may apply (typically 30%, reduced under UK-US tax treaty)
- UK reporting requirements for foreign income
Verdict
RealT offers a genuine opportunity for fractional real estate investing with low minimums. The yields are attractive, but UK investors should factor in the complexity of tax reporting, the lack of UK properties, and the high exit fees. Best suited for investors comfortable with DeFi tax reporting.
Disclaimer: Real estate investments carry risk including property value declines and vacancy periods. This review is for informational purposes.