Investing During Crisis Vol.3 With Georgi Pavlov: If Tokenized Real Estate Is Really Liquid It Will Dominate The Market
Where to put savings to keep them protected during a crisis? When’s the right moment? Isn’t the crisis actually an opportunity? If you’ve been recently looking at the cryptocurrency market or considering putting cash into gold or real estate, this new series may come right on time. We invite opinion leaders to share some thoughts on investments during the COVID-19-related situation.
Georgi Pavlov is the Vice-Chairman of AG Capital, the largest Bulgarian property business group, and has been a board member of the group for more than 10 years. He was previously Development Director at Stara Planina Holding, a large industrial group that is listed on the Bulgarian Stock Exchange. Recently, the development of the technology related to real estate and properties has struck his interest, so in 2018 Pavlov found himself starting Proptech.bg, a community that aims to bring tech companies, startups, industry experts and investors together. Pavlov holds a Master’s Degree in Mathematics from Sofia University “St. Kliment Ohridski” and an MBA from the City University of Seattle.
Trending Topics: Is real estate currently a safe haven for savings?
Georgi Pavlov: There are no safe havens. Real estate is pro-cyclical asset class. It’s much more secure than stocks (properties don’t get bankrupted) but it is connected with the whole economy.
Do you think small business owners/ startup owners should invest in real estate? Why?
When the price is low – yes. Would they be in a cash position then? I don’t know. Are they sure that they can serve the loan if they took a mortgage? I don’t know.
What about new models like tokenized real estate or real estate crowdfunding?
Liquidity is more important than profitability. If tokenized real estate is really liquid they will dominate the market.
So.. they need a market-maker. That could be some financial or real estate investor/broker.
What are your observations and do you think there’s an opportunity or on the contrary?
The long-term opportunities stay the same, the difference is how deep is your financial pocket? Can you survive till the spring (in the economic sense)?
Short-term opportunities: everything that saves money to the people or businesses. Cutting expenses is the name of the game for the next two years. The development will be postponed.