With well-informed resolve and some development, the field will reap more than what has been sown.
FREMONT, CA: $20 million was the number of investments PropTech had in 2008; after ten years, the industry now has a whopping $12 billion assets. With the introduction of handy apps attracting prominent venture capitalists, the buzz around PropTech is becoming more frequent with each passing day.
The latest wave of PropTech 3.0 has presented opportunities disrupting real estate and its underlying basics on which the industry functions. The third wave is the most moving phase of Proptech, which has enabled startups to grow to a level where it stands, difficult the fundamental principles. With the future depending on it, the prospects the industry brings are significant in number. Some of its famous openings for solutions are:
• Mortgage Tech:
Mortgages are time-consuming, complex, and highly paper-oriented; it is ready for a tech intervention. By bringing all together with the buyers, sellers, agents, lenders, and property valuers into the same software, the lagging in the loan process can be reduced significantly. In addition, it is an excellent time to start computerizing the action, as several thousand dealers worldwide are prompted to accept the change.
Between the dull process of renting and owning, the co-ownership models can disrupt traditional mortgages. These models dictate changes like the occupier can deposit some equity to own a percentage of the house and pay rent proportional to the remaining capital. The homebuyer can invest more in the home in comfortable factions, and the tech associated with it will automatically facilitate valuation. Human errors can be avoided by immediately conducting the automated valuation process, and transparency in the percent of ownership is assured.
• Tokenization:
Tokenization of real estate involves digitally fractionalizing physical assets ownership onto a tedious blockchain. The advantage of this process is numerous, with the most prime one being the simplicity of liquidation. The assets will be open for retail grant revenue flow investments by executing tokenization. The investors can invest a part of the structure without having to shed more equity. With more and more transactions of lower amounts, blockchain can adequately handle the finances.
Crowdfunding software has been around in real estate for quite some time. However, it has catered to the niche accredited investors only; with the increased attention on the sector, the idea can build connected public real estate startups. These exchanges inspire more participation, allowing quick ownership transfers at the end of the fingertips and a low cost. As a result, the crowdfunding software will create an enormous, liquid, and highly transactional market of real estate interests and radically alter the industry's perception.
• Housing as a Service:
A refreshing tide of technology-based software will facilitate the implementation of
real-estate business as a service. The services efficiently utilize the living and working spaces while also increasing
connectedness
and social collaboration. Co-living is a current way of living among students, young professionals, and first-time renters. The trend of independent living without restraints has progressively resulted in abandoning asset ownership information to progress towards an on-demand economy. Housing is constantly transforming from a valuable asset to a product, and lately, it is a service that the tech companies are eyeing. This acquisition will surely optimize the processes in real estate in the same way e-commerce optimized shopping.
