Invest2Use

Although Luxury assets are one of the main investment products in the world they are nonproductive assets, unlike stocks or real estate. This means that their advantages as an investment fall back on the fact that they appreciate the time and are a really good hedge against inflation and not on generating recurring cash flows.

Another big reason why people usually invest in the luxury market is to dispose of and use the asset. For example, buying a Rolex has a double purpose. It's an investment but also something you can wear and actively use.

One of the main drawbacks of using Luxit instead of buying by yourself the asset (in the case you have enough capital and you have the opportunity) is that you cannot dispose of and use the asset. As the assets are tokenized and fractionalized there is no longer one owner. However, it is important to remember that the physical asset is still there and can be fully used.

Who and how can the asset be used?

This is how the concept of invest2use is born. it is clear that Luxit can democratize access to investment in luxury assets. However, with the correct approach, we can at the same time democratize its use.

Since today in order to use a Rolex you would not need to have one. You just need to own a part of one. Supposing every token owner posses a use time of the asset proportionally to their share of the asset, everyone owner could dispose of the asset without needing to actually buy one completely. Not only there will be a huge investing incentive but at the same time for occasional users, the experience will be available and completely free. Of course, every owner will be limited by a max using time depending on their share of the asset.

Assets use would be another asset in itself being able to trade the use of assets. For example, trading the use of a Rolex in Madrid for the use of a Patek Philippe in Miami.

Non-productive asset?

Having the asset the possibilities to convert it into a productive asset are there. If the asset is not used by any of its owners it can be fully used to rent it. A whole secondary service of renting luxury assets can be generated by converting these assets into productive products that will successfully generate cashflows for their owners.

All this reasoning is not only relevant to luxury assets. Invest2use and productive asset transformation can be applied to many products and markets like real estate with holiday homes.

Powerful use cases

There are specific situations and cases where the concept of invest2use is really powerful:

• When users want to dispose of assets when they are abroad and do not want to travel with them and just use them for a specific event.

• By owning tokens in different assets you will be able to dispose of more assets but in less time. Instead of just having one and using it all the time, invest2use allows you to choose a variety.

• When owners of specific assets are near geographically speaking. This will result conveniently as we cannot forget the underlying asset is real and physical and in order to use it there will be location-based problems and risks.