In the last decade or so, improvements in technology have continued to develop with many businesses using it to their advantage. An industry that has only recently embraced technology is the real estate sector, although some property professionals try to stick with more traditional methods, which they believe are foolproof. Others argue that avoiding technology can actually limit investment prospects, as PropTech software can help streamline the investment process making things much easier for everyone including developers, investors, landlords and tenants.
If you’re looking to enhance your investment opportunities, you should consider the following technology which will help you in more ways than one.
Virtual reality involves the use of 3D computer-generated imagery to create a realistic representation of products. This form of technology has taken the property world by storm with its ability to bring to life properties that are still in the construction stages. Many property investment companies like RW Invest utilise virtual reality technology to showcase their off-plan properties to potential investors. This offers the investor reassurance as it allows them to imagine what the finished product would look like. It is also an effective marketing tool, as it shows investors what to expect instead of going into an investment blind and can also be used as an advertising platform to entice tenants.
Smart home automation
The rise of smart home technology has become a huge phenomenon for many property owners, who are now investing a lot of capital into constructing smart homes. This includes implementing technology such as smart lighting which comes in many forms, although the most popular is automated lighting which is controlled by sensors which means they only switch on when motion is detected. According to statistics, this type of technology is especially attractive to young tenants, with 77% of millennials buying homes with smart technologies in 2018 alone. This is because many young buyers tend to look for homes that are more eco-friendly and can also help them save on their energy bills.
Another popular home technology is smart security, which includes doorbell cameras and Bluetooth-operated locks which can be controlled by your smartphone. These products can be operated by tenants even when they are away from the house offering complete reassurance that their home is safe. This again will be a great selling point, as buyers or tenants are always on the lookout for a secure home environment where their family feels safe and protected.
When investing, it is important to monitor your return on investment (ROI) to establish whether you are making the right choices. Before the introduction of big data, property professionals relied upon loose estimates to establish their potential returns. However, with new ROI technology, investors can now make more accurate projections as to what they expect to receive from their investment. This includes how much rental income they can expect every month, as well as capital appreciation predictions. This now offers a clever way to invest, as you can work out everything before you buy, which will massively reduce risk and also help you achieve your financial goals much faster.