Enriching Real Estate and Financial Literacy: Exploring Real Estate Use-Cases for Blockchain Technology

Abstract

Over the past decades, in Germany, substantial reforms in pension systems have shifted a considerable portion of responsibility for post-retirement income from the government to individuals. As a result, people are now obligated to proactively plan for their future provisions and refrain from delaying savings. At the same time, the problem of solving poverty among older people is a pressing topic. Meanwhile, to achieve an economic edge, a country’s population must be well-educated regarding economic issues, such as securing retirement provisions, evading speculative bubbles, or fostering entrepreneurial pursuits. Proficiency in financial literacy, including real estate investments, enables individuals to access and engage with various financial tools and resources, enhancing their ability to make informed financial decisions and optimize their economic well-being. This paper aims to expand and enrich the current landscape of financial literacy literature. This is achieved by conducting a comprehensive interdisciplinary literature review. First, the given paper offers a perspective on literacy research, particularly emphasizing financial literacy in the context of real estate investments, including equity release opportunities. Real estate literacy is a sub-category of financial literacy with an explicit focus on real estate transactions. The authors then delve into the impact of blockchain technology within the real estate sector, showcasing distinct use cases that pave the way for the future of real estate. We argue that a comprehensive understanding of the real estate market, which involves knowledge of equity release options, can fundamentally change and enhance retirement considerations.