AusTech

Business and Technology Articles Contributed by UWA Students

Category: Real Estate

Finding the perfect home with real estate technology

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The internet has revolutionized many things for us, it has allowed us to open doors to global property search and finding long lost friends (or family members, even those we didn’t know about). However, when it comes to finding your place in the world, technology can do more than assist. It can help you find the perfect home, in a dream location, surrounded by the life you have always wanted. 

Utilizing personality quizzes on the internet

While it might feel a little foolish to rely on a quiz to tell you anything about yourself, the truth is, they often work. You can use a quiz to figure out what career best suits you, what your personality type is, even what kind of dog you should get. Why can’t a quiz show you where you are meant to live on this planet of 195 countries. If you’re planning to travel the world to find your place, you’ll be traveling for a very long time. Furthermore, you will have to spend a fixed amount of time to really experience the culture of a place and decide whether it is suitable for you which is not exactly practical as that would require moving constantly, for years on end (a lifestyle that is not suited to many) so cut through all that effort and take a personality quiz that can best determine what country you are most suited for

What kind of home are you looking for? 

Once you’ve settled the where, it’s time to look into the what. A glance at a home and lifestyle magazine will show you that there are numerous different styles of housing. From a quaint cottage with vines crawling all over, to a huge mansion with sprawling grounds. Most Americans have adopted the white picket fence as their own idea, but the internet has opened up the world to your fingertips. You can go through thousands if not millions of pictures on photo-sharing apps such as Instagram or Pinterest to find a home that appeals to you. Better yet, you can save all the “homespiration” you run into so you have a comprehensive mood-board you can show your real estate agent (if you opt to go with one) or simply to keep your mind on track. 

Now zoom in on the location

Neighbourhoods matter because where you plant your life and how it blooms is entirely dependent on the environment. If you are hoping to live remotely and alone, it is probably inadvisable to purchase a home in a community lot or commercial area. Conversely, if you are planning to raise a family, it might be more ideal to find a child-friendly neighbourhood where safety and security will not pose any concern. Again, this is where technology can come in to play. Simply Googling the area and checking the news in the recent years will let you know what kind of neighbourhood you are settling into. Furthermore, there are also public forums or Facebook groups that you can use to get to know the neighbourhood a little bit more. Because sometimes, what the eyes see, might only be on the surface. The internet will allow you to pierce that surface and look beyond what is only on the cover. 

Two ways the home building industry is changing with the rise of technology

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The housing crisis the world has experienced in the past decade is a clear call for help in the construction industry. With housing costs rising and millennials- the main market for housing-  not being able to afford housing, it has become a necessity for the industry to try reducing its cost. While all industries have been introduced to technology, one that was hesitant to try it was the home building industry. Nonetheless, it seems to be the only way to increase affordability and make the industry more efficient. There are various different ways in which technology is being integrated into the housebuilding industry both for developers as well as the customers. Developers, such as FactoryOS, have been using a remote form of house construction whereby the housing is built in factories and then moved to the location, this has reduced many of the house building costs. On the other hand, consumers are able to use technology for custom home builders that allows them to outsource much of the paperwork and focus on the other factors of their home. In any way, the house building industry is transforming and there is much evidence to it.

So, here are two ways the home building industry is changing with the rise of technology:

  1. For developers:

Developers are introducing technology in home building to reduce costs of labor and other factors of construction. Building prefabricated homes in factories, as mentioned above is the new home building tech many companies are experimenting with. Using several different stations to build different parts of the home brought together on raised platforms and once finished, delivered to the building site. This factory home building style reduces several costs such as land costs and labor costs as the building is more time-efficient and is not affected by several outdoor hindrances such as weather changes. Many other companies are working towards this same type of construction such as Living Homes. Additionally, 3D printing is another means of home-building tech whereby concrete and building materials simultaneously build homes while other building work goes on.

  1. For Consumers:

Technology in the home building industry also creates an easier connection between the developer and the consumer. It pushes away the need for the middleman and allows consumers to directly understand and be involved in the construction process. Most of the millennial consumers look for sustainable housing, new technology allows them to choose the housing methods that relate most to their values. Moreover, modern homes are becoming more user-friendly as home building integrates home design tech allowing houses to have preinstalled technological systems such as artificially intelligent assistants. Several brands such as Samsung believe that home design technology is the future for all homes.

As technology advances and more companies are willing to try and experiment with their resources more ways of affordability in home building will rise. It is possible that with the addition of home building tech the market will not collapse. The benefits of the innovation in construction will be several not only to both consumers and developers but also to the environment and the public at large. 

Bathrooms are what makes a home?

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It might seem a little silly, afterall, shouldn’t it be living rooms that are the heart of a home? However, research has shown that bathrooms and kitchens are becoming increasingly popular in terms of what people look for when house-hunting. More importance is being placed in a well designed bathroom and a practical kitchen over a living room. It is interesting to note that baths have always played an important part in history – from public bathhouses to a private throne, it seems that bathrooms have a hand in showcasing one’s wealth and status, perhaps that it why it is becoming so popular. 

The design that designers hate: too much art

Stone baths will always stay in style because they are classic and are not loathed by designers. The few things that irk a designer are glass brick bathrooms. While trendy somewhere in the 1980s, it has fallen out of fashion and are also a tedious chore to clean. Anything that is too quirky is also not something that designers will go for because bathrooms are meant to be a place of relaxation – save the art for the living room. 

What everyone loves: glass

On the list of the most beautiful bathrooms in the world, most of them (if not all) feature a glass wall, overlooking beautiful views. All of them manage to incorporate clean lines, bright natural lighting and some go as far as to include some greenery into their bathrooms in order to bring a tropical feel into it. Another popular way to make their bathrooms look more trendy or exotic is by adding wooden panels or bamboo. Marble is also another popular choice as it is classy and screams luxury. 

Floatation tanks to make a cameo in your bathroom? 

It might seem a little far-fetched that anyone would purchase a floatation tank for their own health benefit, but then again, a thousand years ago, it would not have been feasible to have one’s own toilet inside the house because there was no modern plumbing. Floatation tanks are seeing an increase in popularity as it provides mental stimulation and does wonders for one’s mental health. In today’s modern world where mental health is a hot topic, it would not be surprising that floatation tanks become popular in houses – of course, it will appear in the wealthy’s homes first before making its way down to the middle class society. 

Voice control as part of your smart home system

Imagine having a soak and without getting up, turn the water on, dim the lights or change the water’s temperature. Sounds amazing, doesn’t it? Now if only someone can create waterproof, eco-friendly books, everything would be pretty much perfect. Imagination aside, one could quite possibly tell their smart home system to report on weather, news and all without having to leave the comfort of your porcelain throne, getting all the updates from your latest messages to catching up on news, right in the shower. 

Here’s Why 99 Percent of the 1 Percent Invest in Real Estate

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When you go into investing in real estate, the options can be limitless. There are dozens of types of real estate, many financing strategies, and hundreds of promising markets.

But if you’re specifically hoping to build wealth, many people choose multifamily real estate for several very good reasons.

A Quick Word on Wealth

In the current culture, wealth often gets a bad rap. People talk about money in hushed tones and cast judgmental glances at people who have a lot of money.

There’s a notion that wealth is bad and, as a result, people who have lots of it must be exceptionally evil. But this is a foolish idea … and one most people don’t think through fully before they form their opinion.

The mass media gets traction from encouraging readers and viewers to believe that wealth is evil and the pursuit of it is a futile endeavor that leads to wickedness. But the reality is that wealth creators are value creators.

If there were no wealthy individuals in a capitalistic society, that would indicate that no value was being created there. Thus, there would be no worthwhile products or services for consumers to purchase and enjoy.

Can wealth be attained via unscrupulous means? It certainly can. Can it be generated honestly as well? You bet. The choice is up to the individual.

If you study some of the wealthiest individuals and families in the United States, you’ll find they aren’t dealing drugs, running illegal operations, ripping off consumers, or stealing from honest people. In most cases, they’re running fair and plain-dealing businesses that serve their customers’ needs.

Then they take the money they earn and expand it through high-return investments. 

The Appeal of Multifamily Real Estate

Now that we’ve addressed the wealth factor and (we hope) given you permission to crave and pursue wealth, let’s dig in and look at the investments that successful people use to multiply their money. In particular, we’ll focus on real estate.

Most people know that real estate is one of the highest-returning investments out there, but are you aware of the fact that multifamily real estate is the preferred niche of the smart investing class? Here’s why.

 

  • Economies of Scale

 

There’s nothing wrong with owning a dozen different single-family real estate investments all over the country, though the separation can make it harder to manage these investments cost effectively. Dealing with maintenance, rent collection, accounting, taxes, and all of the other responsibilities for a wide range of properties is challenging (even if you retain a property management company).

Its far easier to handle the needs of a 12-unit apartment. When all your units are located in one complex, you have only one lawn to mow, one garbage bill to pay, and one (or at most a couple) large roof(s) to maintain.

Everything becomes considerably more manageable and, as a result, far more cost-effective.

 

  • Greater Organization

 

Financing is usually the toughest obstacle in real estate investment. Paying for a large project is understandably more challenging than for a single-family rental property, but it’s easier to keep it organized than if you compile a dozen independent loans spread across as many properties.

As this comprehensive guide on loans for apartment buildings shows, financing can be tricky for those who don’t know what they’re doing. There are multifamily construction loans, Fannie Mae multifamily loans, Fannie Mae guaranteed loans, Freddie Mac multifamily loans, multifamily bridge loans, traditional bank loans, and an array of other products.

Once you figure out which will be the best for you, the paperwork side becomes a lot easier than trying to manage loans for a variety of properties. There’s only one lender, one mortgage bill, one closing, etc. 

 

  • Emerging Trends

 

To be honest, now is the best time to invest in multifamily real estate. That may sound like hyperbole … or something a late-night TV guru would tell an audience in order to sell a 12-disc real estate investment course.

But it’s an accurate statement. A number of emerging trends make the present the single best time in all of human history to invest in multifamily properties. Heres why

  • As many as 75 million baby boomers are currently on the brink of retirement. Many of these individuals will be looking to downsize out of their current single-family home and move into a multi-family property that’s easier and more cost-effective to maintain.
  • It’s possible that many of today’s apartment complexes will be converted into retirement communities in the future.
  • Millennials aren’t buying single-family homes at nearly the same rate or volume as previous generations did. Instead, they’re opting to rent apartments and condos.
  • It’s getting more and more expensive to build new apartment buildings, which will increase the value of existing multifamily units.

All these factors create what is essentially a “perfect storm” for multifamily properties. By getting in now, you have the opportunity to ride these trends (as opposed to catching them at or after their peak).

Diversifying Investments to Overcome Instability

By definition, investing is laced with risk. One of the key differences between wealthy individuals and the middle class is that the former take on healthy risks that offer the potential for high returns.

As you seek to expand your own funds and build wealth, look for investments that create solid opportunities for high returns. Make sure you’re diversifying these investments to limit risk, however, and increase your chances of coming out way ahead.

Australia Real Estate Investing: 3 Reasons to Invest in Australia

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Branching into foreign investment can have several far-reaching advantages, especially if you want to diversify your funds and explore other locales. What better place to do this than in a beautiful country with a resilient economy?

With its sixth place title among the world’s largest countries, Australia certainly has the land area to support a growing trend in real estate investment. From Sydney to Perth, there are so many large and livable cities in Australia that create growth and opportunities for foreign investment to come in.

Use location as a tool

Australia might be more of a remote destination, but this can be considered a benefit. Its location lends itself to connections with a variation in time zones. So, no matter what part of the globe you are coming from, placing your business in Australia can provide you with a link to the other side of the world. This means that next time you are looking to expand, you can do so even further, and with the comfort of a convenient business tie.

Culturally, Australia is an incredibly diverse nation. Statistics tell us that a quarter of Australia’s population has immigrated there. The level of multicultural prospects that this provides can only help you in establishing your investments abroad. Also, since English is the primary global language of business as well as the primary language spoken in Australia, an English-speaker should feel comfortable in this environment.

A reliable economy and workforce

As a whole, Australia’s economy has seen consistent growth for over 25 years. Entering the market in such an economically healthy nation can only be beneficial. The stable political climate and dependable property legislation make it a strong place to situate yourself. Take advantage of the strong workforce too.

All of these highly skilled workers may be looking for competitive housing prices as well. Use some online rental application software to better cater to your young and employed target audience. Looking for tools to aid your long-distance business proceedings allows you to run things more smoothly, even if you are not immediately available.

Diversify your personal growth

Taking advantage of the opportunities that another country has within their own real estate sector will help you take your own profit into a diverse market. If you are bored of the investment choices in your own area, or are just looking out for future trends, it is a smart option to expand internationally.

Another positive is that you can diversify your monies into Australian dollars versus a single type of currency. Whether real estate investment means that you are buying, selling, or developing, the choices are open for your selection in a way that lets you maintain control.

Since Australia also has versatility, your land can be used for whatever you need it for. When looking at rentals, use a home loan calculator online to take the hassle out of the loan process. Approaching international real estate doesn’t always have to be intimidating or negative.

The peak that Australia’s economy and cultural diversity are at make it a resource for investing that you do not want to miss out on. Its role as a potential global business liaison and its use of English as its primary language enables investors to dip their toes into the market with ease. With many of these sorts of barriers cut out of your path, feel free to network outside of your usual location into a country that welcomes foreign investors.

Navigate The Evergreen Real Estate Industry

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Real estate can be an exciting industry – one which demands that buyers stay updated on current trends. This can be particularly vital to investors looking for a robust and revenue-generating real estate entry. More often than not, understanding the market fundamentals will help the buyer sketch out opportunities and weak points. If a buyer is able to identify and lock in on a smart real estate buy when the market heating up, it’s largely because of their ability to seize the opportunity.

Here’s what potential buyers can do.

1. Knock-down rebuild

One of the bigger benefits that come with knock-down rebuild is the opportunity for the buyer to stay within the same neighborhood. They can tap into bargain buys where an older property can be picked up at the land’s price and knocked down to rebuild. If homeowners really like their current neighborhood, the local community and amenities, a knock-down rebuild can be a great option.

2. Scout for concessions

Concessions can signal a strong market high. Albeit seeing rental growth and high occupancy, concessions through free rent can boost sales. Better yet, the buyer or tenant stands to benefit if the free ride is due to an oversupply in the market – this enables more room for the investor to pursue savings.

3. Stabilizing interest rates

Over recent years, the real estate sector has been shying away from capturing a remarkable momentum. Last year, market data highlighted buyers exiting the market as their current mortgages were pitched to be lower than what the buyers would be able to snag on newer loans. By the start of 2019, this soon slipped to the background and rates began to stabilize, helping drive a better market.

4. Do you find ample spam crowding the market?

If a potential buyer, after studying the market, does not close in on any spam properties – it could signal that the real estate is riding a good wave. Spams are red flags to notify someone that a dire real estate scenario is likely.

5. How can you gauge if the market is downsizing or on an upward climb?

The best bet is to pay attention to the brokers – what are they angling more towards? Are they quoting different market bets to buyers and sellers? If you want to gain a good perspective, pretend to be a seller if you’re looking to buy and vice versa. Try to bid prices, and talk to experts within the industry. This can help you understand how flexible the prices are and if it’s the right time to make a purchase or sale.

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