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What Is Digital Real Estate?

Updated: May 13, 2022, 3:42 p.m.

One major takeaway from the global shutdown during the COVID-19 pandemic is that the future is digital. During the shutdown, the world went remote and relied heavily on digital assets to perform its routine business activity, and this digital concept was no less prevalent in the real estate industry.

That is right, we have reached The Jetson Era, the future is now, and it is digital. The real estate market of our advancing world is also digital, and for a savvy investor, the time to hop into the digital marketplace is now. As Will Rogers once said, "Do not wait to buy real estate, buy real estate and wait." Sounds like it's time to think about your next piece of virtual real estate. Maybe you can be the next investing giant!

Before you hop into the exciting digital real estate market, you may have one looming question hanging over your head: What exactly is digital real estate? The term may seem rather abstract even for the most savvy of investors, so let's dive in and learn more about digital real estate.

A person looks at a virtual house that's hovering above their tablet.

Image source: Getty Images

To keep it simple, digital real estate is everything you see online related to real estate. A more technical term is virtual property. So, all the websites, domain names, and URLs are forms of digital assets, and like most assets, they are worth money. Maybe the time is right to purchase your first digital asset.

Much like traditional real estate, these properties can be bought and sold on the market. Think of the social media giants, like YouTube, Twitter, Facebook, Instagram, and most recently Clubhouse; these are the landlords of the future. For many social media apps, the owners get paid when the users purchase ads (e.g. Facebook ads) or pay to boost their profile. Just like that, the landlord receives passive income, and, unlike traditional landlords, digital landlords do not have to repair leaky faucets.

While there are some differences, there also are many similarities. Just like with physical real estate, digital landowners have one of the most essential tools to winning the wealth game: ownership. Sounds a bit like the game Monopoly, I know, but this is how it works.

Note: Industry leaders have various definitions for the virtual space called the metaverse.

In general it is a virtual space that includes the virtual world, augmented reality, and the internet where users can engage in an enhanced virtual reality with other users.

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Why digital real estate

Some companies, like Decentraland (CRYPTO:MANA), even allow you to purchase virtual land and invest in the metaverse.

On Decentraland, land is selling for as high as $900,000 for 16 virtual acres. While some virtual plots are being sold for close to a million dollars, you do not have to break the bank in the digital marketplace. You can purchase a domain name ( a form of digital real estate) for as low as $12. Plus, it doesn't have to be complicated -- you can start by creating a domain name using your own name. Who knows, you might be famous one day.

As you can see, investing in digital real estate is worth your while. Some of the most well-known websites are worth millions. For instance, The Huffington Post has an estimated value of $214 million. With the chance of becoming a millionaire, the time is now to start that blog you've been putting off.

How to get involved in digital real estate

If you're ready to increase your cash flow, there are so many ways to get involved with digital real estate. Interested investors can purchase existing digital properties, an established website, or they can build their own digital properties. Sounds familiar? It works exactly like physical real estate.

Advertising digital properties

To advertise your digital property, you will not need Zillow (NASDAQ:ZG); you can use Facebook Ads or other forms of sponsored content to advertise your digital properties to prospective buyers.

The bottom line

As former President Franklin D. Roosevelt most famously stated, "Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world." In today's market with millions of people surfing the worldwide web, what safer market is there to tap into than tapping into the million-dollar digital real estate industry. Whether you choose to build a website or purchase one, digital real estate is potentially one way to increase your income.

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