KRM - Kirkstone Rental Model
Kirkstone will accept monthly payments in $KIRK from tenants. This, in combination with no mortgage payments, will allow Kirkstone to offer reduced rent. By allowing the $KIRK in our reserve to refill and appreciate in value, Kirkstone will maintain profitability without financially impacting the tenant. Subsequently, the rental prices will be competitive and priced regionally, which in turn will make Kirkstone properties fiscally attractive.
The tenants will have access to multiple functions that can be utilised during a contract with Kirkstone, such as the deposit investment scheme and equity build up via NFTs. Kirkstone will offer increased transparency to international students through the easily verifiable transactions on the blockchain.
Deposit Investment Scheme
Kirkstone will provide a deposit investment service which will allow tenants to invest their deposit in a range of investments depending on an individual's risk tolerance, from index funds to liquidity pools and staking. All fiat investments will be managed off-chain (with performance details made accessible) and crypto investments managed on-chain. Constant smart contract development will be occurring to make the process as seamless as possible.
Bitcoin, USDT and Cardano will all be possible investment currencies. Stable coin staking presents an excellent opportunity to retain the value of the tenants deposit. $DJED is a stable coin to be released by COTI that we are considering implementing as a staking option. An example of an available fiat investment will be the S&P 500 fund, which generally returns around 7-9% every year. It is important to note that tenants can lose money through the scheme and thus will have to make up the original deposit at the end of the contract. Secondly, the tenants can choose to divest from the scheme at any point, which will lock their profit or loss until the end of the contract.
International Students
Another of the inconsistencies in the renting industry is how international students are misled and mistreated. Kirkstone will rectify this by utilising smart contracts, international representatives and working with universities/societies to provide high quality housing at competitive prices.
Equity build-up via NFTs
One of the major disadvantages of renting is that the consumer is not building equity in the property they are leasing. To solve this, tenants will have the option to build equity in Kirkstone properties. Each year tenants will be able to acquire a set percentage by increasing the amount of rent paid with the additional capital building equity. Therefore, for the same rental amount, the KRM model allows a tenant to build equity in a property compared with the standard rental model.
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Property Equity NFTs
Property Equity NFTs will allow investors to acquire equity in Kirkstone properties. Not only will the investor be entitled to an equivalent percentage of the property's equity, the NFT will also generate a corresponding operational profit. Kirkstone will benefit from the inter-consumer selling of the NFTs which is facilitated by the NFT marketplace.
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Mortgage NFTs
Mortgage NFTs will provide Kirkstone customers the opportunity to invest in innovative mortgage products, which previously would have been out of reach to the low capital investor. In brief, this entitles the NFT owner to a fraction of the profit made from interest payments on a particular mortgage.
Development NFTs
Kirkstone is ambitious. We aim to solve problems in all areas of the real estate market. In the UK, 340,000 homes must be built every year until 2031 to meet the current and future demand. Kirkstone will work with local communities, councils and consumers to help meet this target.
Housing developments face a variety of challenges:
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Raising the required capital without requiring loans or unnecessary partnerships
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Ability to access low-capital investors
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Local complaints
Kirkstone aims to partially fund developments with company funds and reward NFTs. This innovative model will provide the necessary capital to complete the project, while being able to reward investors with their share of the profits. Housing developments of a significant scale and profit margin are difficult to invest in for low capital investors; meaning the projects preserve the rich. Kirkstone's approach will substantially reduce the amount of capital required to enter the housing development industry.
Local complaints and objections can derail any housing development project. Kirkstone will have a 'local fund policy', which will provide residents with the capability to invest in their community and share in the profits. We will work closely with communities to understand their needs before committing to a project.
Resale NFTs
When we sell a Kirkstone property, we will implement our tokenized house resale model. In this model, Kirkstone and the Ashby Homeless Foundation will receive a set percentage of each sale for a given number of sales. To incentivise initial buyers, we will offer 1% of the house's sale value (valid for 3 sales).
Real Estate Launchpad
Kirkstone assessed that the future of the real estate industry, amongst many others, will be heavily linked to the development of innovative cryptocurrency projects. Since we are among the first to link the industries, we want to facilitate continuous innovation; hence Kirkstone will develop a real estate launchpad. This will give Kirkstone a 'first mover advantage' so as the cryptocurrency real estate market grows, Kirkstone will be a market leader. Kirkstone will vet any project that applies to be involved with the Launchpad; ensuring trust in the Kirkstone brand and associated projects.
Erdos
The Vacation Model will allow consumers to rent temporary accommodation via the $KIRK token.
Initially Erdos will be limited to outside semester time, as the model will be tested in Kirkstone's student lettings. Student tenants will directly benefit from this testing programme as a percentage of the profits will be shared with them. For example, most students do not stay at their university accommodation during the summer months. Subsequently, between July and mid September, students are paying for housing which is not being utilised to its full potential. By enabling vacation accommodation, Kirkstone will allow tenants to unlock an asset which they are already funding.
Following this initial phase, Kirkstone will open the platform to the public. There will be increased benefits for early adopters of the services, potentially including lower fees and greater staking rewards. Long-term we will rival classic vacation letting services such as AirBnB and VRBO.