How property investment will change amid the continuous rise of technology

Several technological advancements have "undeniably" made an impact in the ever-changing landscape of property investment, from buying and selling to the dynamic between investors and professionals, according to one expert.

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Salesforce’s Jonathan Miranda says that creating wealth through property has never before seen a lot of movements as it had recently, and the future of the business is definitely looking "bright and beautiful".

"For years, an entire generation has built the startup world and the venture capital world in order to improve lives by providing more human-focused and experience-focused services that cater to specific needs of different clients," he said.  

"As hard as it sounds to come up with solutions to a variety of problems, the continuous rise of technology has paved the way for more efficient processes that help industries achieve maximum productivity with minimal wasted time, effort, and expenses."

The strategy and technology expert said its really just about working smarter.

“It's about taking a certain task of the job, something that was repetitive like data collection or processing of information, and replacing manual labor with artificial." 

 Providing ‘custom experience’

Mr Miranda said the client-to-professional relationship is one of the things that was, and is, still greatly impacted by technological advancements - but not in the way most people think. 

Human interactions will not be replaced by artificial intelligence, he said. Instead, there will be more room to create a custom experience for every property investor.

“They want to get away from the model where I buy something, I sign a contract, and I never see you again for 30 years, because that becomes commoditized.

“Millennials care about the experience and what you actually provide to them as a custom experience. The process is going to change from just selling you a house to ‘I'm going to help you set up your house in the future, help you know about the different offerings in the area, keep you up-to-date on the technologies that you can help put into your home.’ ”

He also said companies should aim to figure out how to establish lifelong relationships with their customers instead of looking for ways to replace actual people with artificial intelligence. The buying experience, for instance, has become riskier for different lending groups because it has become easier to purchase assets over the phone or through the internet.

“How do you combat that? It's having a different relationship. It's not just about ‘I just signed the deal and it's all said and done.’ It's providing an ongoing relationship—a personalised relationship."  

The beginning of personal data economy

Mr Miranda said one of the other things that technology has also impacted a lot is data, and the way it is gathered and processed by service providers.

He said technology has made it possible to have a wider set of avenues to extract information from, but while this is undeniably helpful in determining a specific solution to a problem, responsible collation of the right information is still key to smart decision-making. When it’s become easier to gather data, many people were initially taken aback by how open the new sources are to the public.

“A lot of the groups are starting to pull in information from a lot of areas and making decisions around ‘You've been approved’ or ‘These are the offers that you should have based off of all this information I have about you.’," he said.

“In the very beginning people were kind of freaking out, saying ‘How did you know this? I didn't even talk to you or give you my information and you've already declined me or approved me?’ But having that relationship of transparency is how they're winning that battle.

As an example he pointed to JP Morgan, saying it is doing a lot of work with its COIN AI, which handles a lot of their contracting.

"If you get approved or declined or you're looking at different offers, they will be very transparent and will share with you all of the information they know about you, which is a lot more than most people think about." 

Mr Miranda said that aside from knowing your social media accounts such as Twitter, Facebook, and Instagram, companies have also found a way of knowing your buying habits and other vital information, which helps them make better decisions for you as their client. Moreover, they are also giving their clients the option to share more information in exchange for more benefits.

“Companies will say, ‘If you give me more information so I can make a better decision about you, I can actually provide you a monetary benefit’ or ‘share with me your Fitbit information and I will actually drop the price of the shoes $10 and I'll find a better shoe for you.’

“That's an easy conversation with a customer because they're getting a benefit out of it. It's all about having that relationship with your customers and figuring out what information you're going to use and being very transparent about it." 

At the end of the day, According to Mr Miranda, the more information a service provider has, the better output a client usually gets. This, he adds, is the beginning of the personal data economy—a system of providing services and products to customers who are willing to share information through safe and transparent means in exchange for an increased level of benefits.

"While it could be a little creepy thinking about how a company can know more about you than you do through mere recordings and observations, it’s most likely going to be normal in the next three years. 

"Right now, it’s already possible—even normal—to summon strangers to pick you up in their cars and get you to places, or even stay at a place owned by somebody you have never met before."

He said five years ago, your “stranger danger” instinct would have been on red alert simply by thinking about being in these circumstances. 

“The way that people conceive about how much data is known about them is going to change over the next few years. Having the value that's provided to you by you sharing information will just win over the fact that it seems a little bit weird right now."  

 

Tune in to Jonathan Miranda’s episode on The Smart Property Investment Show to know more about artificial intelligence and the changes it will bring should be embraced and not feared. 

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