# What is fractional ownership?

The residential real estate market is known for its stability and high income. Still, very **few of us can afford to buy an entire property**. To invest, you'd need to spend at least $50K for a down payment and months to prepare the contract according to local laws. Finally, you'd need to take care of the property and find tenants to rent it.

Luckily, today, a legal framework **allows anyone to own fractions of real estate anywhere in the world**. This eliminates all the hassle of traditional investing.

### How does it work? 

Blockchain technology ensures fractional ownership of properties, backed by U.S. laws. **House ownership is converted to digital format and recorded as tokens on the blockchain**. Each token has a fixed value of $50. Whoever buys this token[ becomes a co-owner of the property](https://guide.binaryx.com/about-binaryx-platform/how-does-it-work-legally-confirm-your-ownership) in the real world.

This framework is not our invention: fractional ownership of assets has been around for 5 years and has been implemented by multiple companies. Leading economists[ acknowledge](https://www.binaryx.com/rwa-tokenization-report) it as one of the key trends of the decade: **the market of blockchain-based assets is to grow 25X by 2030**.

### Perks of fractional ownership

* **Low barrier to entry**: invest as little as $50 
* Zero paperwork:[ we've done it all](https://guide.binaryx.com/about-binaryx-platform/how-does-it-work-legally-confirm-your-ownership) for you
* **Sell it fast**: whenever you want to get rid of your investment, you can do it in a few clicks
* **Diversify**: since property fractions are inexpensive, you can buy many different ones to "put your eggs in different baskets"
* No property management hassle: we find tenants, distribute rent between investors, take care of the property, and pay taxes