ONE OF the first mortgages in the metaverse has been brokered by tech company TerraZero.
The Canadian company has issued a $45,000 mortgage in the popular Decentraland metaverse game.
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Metaverse mortgages sound like a strange concept, but TerraZero CEO Dan Reitzik thinks they’re more affordable than real-world mortgages.
“We get hundreds of inquiries a day — ‘Can you help us buy property?’
“At first, we thought, ‘That’s kind of crazy,’ and then we were like, ‘Why not?’,” he recalls.
“Everybody wins. Young people can’t own properties in the real world right now, but they can certainly own properties in the metaverse.”
Of course, the applicant — whose identity hasn’t been disclosed — still had to go through the credit check process.
The main difference is that the mortgage is unregulated and has to be paid in full in two years.
A “significant” down payment was also part of the deal, although TerraZero hasn’t shared further details on how much that was.
The idea is that the commercial digital real estate will generate enough income to cover the monthly mortgage payments.
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While the customer remains a mystery, Reitzik has shared that they’re “planning to build some sort of game.
“There’s a concert space nearby and a golf game to the right that’s very popular.”
TerraZero isn’t the only company offering metaverse mortgages, and it’s not limited to just Decentraland either.
On the mortgage application page it mentions a number of metaverse options, including The Sandbox, Somnium Space, and Solana Portals.
Making metaverse investments is always risky, so you need to do your due diligence before committing.
Even if you’re approved for a mortgage, the plug could be pulled on these metaverse ‘games’ leaving you with nothing to show for your money.
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This post first appeared on Thesun.co.uk
