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The emergence of proptech will allow financial institutions to create a “living profile” of investors allowing for easier access to credit as well as more informed decisions from the investor, an industry expert has said.
As part of Smart Property Investment proptech special, Managed co-founder and director Nick Bouris compared proptech to open banking, which allows for ease of information for the consumer.
“What we will see is this living profile of you as an investor.”
“Your property information – the amount of rental income it has been generating, all your loan information, change in equity and property values – will all feed into a live profile of you,” Mr Bouris explained.
The proptech co-founder believes that by creating a live investment portfolio investors will have greater control over their information, leading to better investment decisions.
Successful property investment is a three-stage process of buying, managing and selling, with a living profile allowing investors to make better informed decisions at each stage.
Mr Bouris said proptech will allow investors to utilise listing portfolios to build investment thesis and create negotiating strategies before buying.
He also suggests managing will become easier as proptech will make it easier and more cost-effective to manage a property.
When it comes to selling, proptech can be used to help gather intel to ensure the property investors get the best value for money.
Mr Bouris also said this living profile will help simplify the current loan process of getting information to a mortgage broker.
“It’ll all just be done automatically. You won’t need to prove your serviceability or your borrowing capacity – it will be reflected in what’s actually happened in your transactional banking, in your property portfolio and what’s happened in the market regarding prices,” Mr Bouris continued.
Finally, the proptech specialist believes it will help investors with existing portfolios expand quicker and easier due to information being available to credit providers.
“If you already have a property or a number of properties, being able to communicate your personal net worth will become a lot easier.”
“It won’t be this big information-gathering procedure that it is today,” Mr Bouris concluded.
As part of this month’s proptech focus, Mr Bouris previously spoke about how slow government agencies are failing to keep up with the emerging proptech industry.
“I think the major challenge in proptech right now is the various government agencies and people that sort of regulate it. I just don’t think they are keeping up with innovation,” Mr Bouris said.
Mr Bouris also spoke to Smart Property Investment about how buyers, managers and sellers can all take advantage of the proptech industry.
“Successful investing in property is a process,” Mr Bouris said.
“It doesn’t end with the purchase – it’s buying, it’s managing and selling.
“For each part of that process, you’re generating a return or money that contributes to your overall return and there’s great technology to utilise at each stage,” Mr Bouris said.
The proptech advocate also discussed how the philosophy behind buying property in Australia has led to the nation having one of the most sophisticated proptech markets in the world.