What Is Prop Tech? Property Technology Explained
Last updated 30th July 2018 • JaeVee Marketing • JaeVee
In recent years you may have begun to hear the buzzword ‘Fin Tech’ (financial technology) cropping up online, but now ‘Prop Tech’ is set to be the next big revolution.
It begs the question...
What is ‘Prop Tech’?
Prop Tech simply stands for property technology and it’s an industry that is using digital technology to reinvent, streamline, and improve the property sector.
There is no denying that we live in a purely digital age; we order taxis, fast food and shopping with just a couple of clicks. Industries are having to embrace the digital age to keep up with modern day living, and the property sector is no different.
In just 10 short years, Prop Tech has been transforming how companies in the property sector operate and offer their services. Old age practices are quickly becoming replaced.
It can be said that Prop Tech was born just as though the internet was picking up speed in the late 90’s and early 00’s.
The technology was aimed at changing the way we buy, sell, manage and invest in property and it doesn’t show any signs of slowing down, in fact it’s quite the opposite.
Prop Tech is making it easier for the buyer/ seller to achieve their end goal in a quicker, easier, and cheaper way by using technology.
Prop Tech is connecting the different parts of the property market in a way they haven’t before, which means that buyers/sellers/lenders can all make better business decisions.
The Rise of Prop Tech
Modern millennials, due to political, financial and other factors, are now less likely to get a foot on the property ladder and are having to instead rent for longer periods of time.
The average age of a first time house buyer is 31, which means the demand for rented houses is increasing.
Software can be used to analyse the data of who, where and when people are buying houses and what is trending within the market making it easier for an investor to spot a good deal.
With the many online brokerage apps, house listing and searching tools. thousands of mortgage deals can be viewed finding the best deal and offering more transparency.
With such an abundance of information now accessible at your fingertips, it's easy to see why Prop Tech is a rising demand in the property sector.
With the introduction of up to 3% stamp duty land tax and the proposed withdrawal of mortgage tax relief schemes by the government, we are moving into times where we're more dependent on instant analysis.
Prop tech is the emerging force which makes property development and property investment more accessible than it has ever been.
JaeVee, Your Property Partner, has designed a powerful Prop Tech platform which helps you tackle the more complex areas of property development, making it more secure, easier and quicker for the property developer and investor alike.
The ability to pay on the go, view a house and it's potential via virtual reality as well as access property investment platforms are all becoming a firm fixture in the future of the property market.
Online estate agents are an increasing trend. Especially those that do not charge a high commission as companies are forced to show transparency to the consumer to gain their trust online.
Augmented reality, virtual reality and more sophisticated data analysis will soon be standard practices.
Once the made up fantasies of a science fiction film, will now see you being able to buy a house without ever even seeing it.
The possibilities are endless, and gone are the days where the property sector remained stubborn to change instead for those that wish to keep up, it means embracing prop tech.
It is more than a movement, it is an emerging giant for change.
How Prop Tech Is Changing The Property Industry
There has been an explosion of change in the way we use digital technologies to change the way we buy/ sell/ manage property in the last decade.
There are now many online tools on offer that have made buying, selling, renting and investing in property a very different experience and changed the property industry.
Let's take a look how Prop Tech is changing the property industry.
Better decision making
By using prop tech software it means that a thorough and regular analysis of the property market can be undertaken.
With what used to be a multi person job can now be done by artificial intelligence.
Data analysis can be used to drive better and safer investment decisions.
Trends, demographics and behaviour results can be used to reinvent services and improve strategies.
Professionals have described it as a ‘game changer’ to how we apply strategies for future investments.
It is easier to get finance via online mortgage brokers, crowd sourcing or a property partner than it ever has been before.
Prop tech has changed the property industry by giving accessibility to finance and opportunities to the many rather than the privileged few.
You can raise capital online, look for new investors, search for a joint venture partnership via online portals that did not exist a few years ago.
It has also paved the way for search listing sites to see comparable properties in the area and what they sold for, the demand in the area and an up and coming areas for investments in a few seconds rather than the hours of calling individuals to get the same information.
Data driven recommendations have given way to a faster, and more accessible market similar to that of the stock market and making it easier to see the potential of your buying decisions.
There are many complexities to buying a house, from sourcing the funding, going through the legalities, as well as the implications of owning and managing your own property and selling it on.
In years gone by some of the practices have caused a lot of stress and friction but prop tech is changing the property industry by removing them and taking them out of the picture all together.
It is providing more value to the investor.
It has pushed those within the property industry to reinforce the commitment to the buyer/ seller/ investor and become more transparent.
By streamlining the more time consuming processes it means there is less likelihood of outside influences to impact the investment.
Remember when you would pop to the shop to buy a paper to look at the property section? Or visit the estate agent for a brochure and go to an open house?
Now, with just a few clicks and some very sophisticated virtual reality software you can view and house without leaving yours.
You can view the potential of the property and what can be done with it. Prop tech is utilising the ever developing AR and VR reality technologies to change the property industry, property marketing in particular.
Estate agents can offer a video tour of the property which can be done in your lunch hour, it is as though the ‘showroom’ has now come been delivered straight to you.
You can suddenly play interior designer with apps designed for you to ‘re model’ your future house.
Chat and automated bots are improving communication, and have become ever present on social media.
They allow the buyer to ask a question and receive an instant answer rather than waiting for a call back or reply.
Improving efficiency and reducing cost over time, and leaving the client satisfied.
Prop tech is at the heart of changing the property industry and is offering solutions to old age problems and giving new and modern alternatives to investing in the property industry which will see it be taken to the next level not just for new start-ups, but for all.
One must embrace the change to keep up with the changing property industry.
Your property partner
JaeVee is your property partner which operates via an online platform that allows you to submit property development proposals and provides 100% funding for every profitable property investment you find in the UK, including all the support you need all at the click of a button.
As technology quickly becomes outdated and reinvented so to, will Prop Tech have to change to keep up with the growing demands of the digital age.