Turning clicks into bricks

Technology has proven a boon for avid property investors in recent years, with access to swathes of information that previously either didn’t exist or was only available to the professionals.

Wakelin Property Advisory directoy Paul Nugent said the increase in information available to investors had made life a lot easier, but there were still some issues to consider.

“I think one of the greatest innovations in recent years has been street view and birds eye view and being able to Google properties,” he explained.

“What is absolutely crucial to the long-term viability of any property is what is going on around it. If you are not familiar with the area it gives you a fantastic insight without having to go and waste time and fossil fuels to explore a certain property when there might be factors that would knock it on the head straight away. Something as simple as that can really help rationalise the searches up front.”

The use of email and internet listing sites were also a blessing for selling agents, he continued.

“It is great for agents being able to update clients on new listings that come in, which is fantastic,” he said.

“Getting floorplans, photographs, virtual tours – they are really good. There are less and less houses that are not making it to websites these days. It is so easy for an agent to take photos and upload the listings.

“There are always going to be properties that are transacted within certain circles of people that know each other and they won’t make it into the public domain, but I think there’s probably more out there in the public domain than ever before.”

And it is not just information about the property itself that is available, Nugent added.

“What else is great about technology is the amount of information [investors] can access, whether it is the performance of particular streets or suburbs or types of properties,” he said.

“You are best subscribing to the data, but the fact is that now it is actually available when not so many years ago it wasn’t.  If you put together the different elements in terms of being able to track down assets but also being able to analyse what is going on, it can really give you a fantastic head start.”

Investors can also utilise technology to speed up the purchasing and negotiation process, Nugent continued.

“It does make a difference to those people who know how to use it,” he said.

“Of course, there are more opportunities to go wrong if not used correctly, [but] it is great to be able to submit an offer or to get a confirmation.”

So what is next for the use of technology in property investment? According to Nugent, it’s not yet clear.

“Whatever the next practical application
of technology is going to be, it will be a
boon for property buyers – whether it is a more advanced form of virtual tours or some form of interface that creates an instant update when you are looking at a property
of the suburb’s vital statistics or the performance of median house prices over the past five years,” he predicted. “I can see that happening and I am sure it will be even more sophisticated than that, however while I am sure this is absolutely essential to the future of property transactions it must always be seen as an adjunct to actually seeing properties and meeting with agents. No matter what the next advance in technology is, it won’t be the same as meeting the selling agent on the spot in the property and smelling the garden.”

While investors should be wary of relying too heavily on information available on the internet, they should also be wary of another issue – access to too much information.

Nugent said that many investors would need to spend time putting the information into the appropriate context.

“I would have thought that for most people wanting to get on with seriously analysing the market and finding an A-grade investment [too much information] is superfluous – it could add a layer of complication that is just not necessary,” he said.

“Buying an investment property is relatively straightforward in that one must be purchasing an asset which is in high demand and low supply. It is about knowing in a particular area – without speculating – what type of property one should concentrate on buying. If you know what you are buying and where to find it and what the price range roughly is, then it is only a matter of tracking it down.

“It is a very big commitment to make
when you are buying an investment property and many people do get it wrong because they have been bombarded with information and advice from well-meaning friends and relatives and the media and data service providers – they complicate it more than they need to.

“Then of course they either end up buying the wrong property believing it is for the right reasons or they withdraw completely from the process because it is all too hard.

“It is like anything – there is a healthy balance between being aware of what is available to you and being aware of what context to put it in and how to apply it to your own situation.”