In the last decade, the real estate market has been volatile and more people are becoming wary of residential and commercial property investments. The result is new real estate investors approaching the market differently and employing new strategies for success. And, technology is playing a critical role in this shift.
Today, in addition to teaming up with development companies, many investors are using technology solutions to research options remotely. Here are the three trending ways technology is revolutionizing how new investors step into the real estate market space.
1. Short-Term Rentals Bringing in New Investors
Mobile apps like Vacation Rentals by Owner (VRBO) and Airbnb have become popular and more people are now looking to invest in such short-term rentals. However, some experts are not all in for the idea of investing in short-term properties since they work differently from the traditional forms of real estate investments. That been the case, players in the real estate market need to reinvent themselves to respond to innovative new business ideas and the changing times.
Potential investors include millennials that have lived through some of the most troubling market fluctuations in recent times. However, the millennial investors are also more likely to use services like Airbnb; hence, they might be drawn towards such investments. In addition, they are the generation that has encouraged the short-term rental market over the Internet, and they have experiential knowledge of how it works.
2. Investments Driven by Data
Big data is now a critical offering for the public, and the real estate niche is looking for ways of gathering and presenting the information for driving purchase behavior. A few years ago, real estate investors had to access data from the MLS and rental income data, as well as collect data related to expenses like taxes, insurance, HOA fees and others. The investors then had to put all data collected into a spreadsheet for analyzing the potential value of a single property.
Today, even though big data is not accessible by the public, for the real estate professional, taking all the steps above has been simplified by technology. You don’t need to worry that data driven investments will replace professionals; instead, data will help create more specialization in the industry. Using data, you can easily analyze your investments from buying to holding, long or short-term rentals, or from fixing and flipping perspectives.
3. A Huge Untapped Potential
Following the success of the customer-centric applications, it’s clear to see that the industry holds a huge potential if technology is leveraged to bring in new investors. Real estate is the largest global economy asset with figures hinting at $217 trillion – surpassing the world’s GDP of $80 trillion! This is a clear indicator that there is a huge potential for financial freedom creating entrepreneurs looking to tap into the real estate market.
Through technology, business people are capable of selling their offerings all over the world. At the same time, leveraging technology can also help investors like you find property that quickly turns to profit.
Using technology, you can quickly carry out research, learn the numbers and zero in on ideal properties with razor-sharp focus. Technology also offers you a way of collecting all usable data, like local occupancy rates, rent rates, seasonality and many others, to help you make a better decision during purchase. Investors with a comprehensive set of data inevitably spend less time carrying out research and more time acquiring and selling property.