What a trip to Silicon Valley taught me

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CONNECTIVITY could become more important than a ‘nice to have’ for future homebuyers as we endeavour to squeeze more into our already hectic lives.

The digital world is fast changing the way we do business in real estate. People are already able to inspect potential properties around the globe without even stepping a foot out of their front door. They can be in contact with agents 24/7 and receive data on all facets of the market in an instant.

But technology is now poised to influence the type of property we purchase. Our home is set to become the connect hub of our lives.

It is no longer just going to be shelter and security; it is going to be how we interface with the broader world and how the broader world connects with us.

A recent tour of the US headquarters of Google revealed to me just how life is set to change. Everything is going to be connected and that includes your residence.

Your home is becoming an API, which is technical speak for Application Protocol Interface. Properties are already connected to the outside world through Wi-Fi systems, smartphone home management apps, content-streaming entertainment devices, home security and more will follow. What you know about your property will be just as important as what your property will know about you!

We are starting to see this with systems such as Netflix, where the technology observes behaviour, making suggestions on what to watch based on what you’ve already been enjoying.

These systems will triangulate other things about you from what you like to eat, to how you like to spend your leisure time, all building a profile on your lifestyle preferences from your home. At the same time the house down the road will be experiencing the same connectivity, thus determining the types of services most suitable to your neighbourhood.

Communication won’t just be the traditional face-to-face or through the phone either, it will be through a number of devices. Even the humble front door will play a role in activating technology and services, sensing the Uber car pulling up outside, and learning about how you like to lead your life.

Such advancements will bring with it a shift towards high-density living, not just because it is affordable but because these properties will be connected to a host of on-demand services, shaped by the lifestyle preferences of those residing in these communities.

This is already happening in places such as San Francisco city where in certain communities you can order home delivered ready-to-eat meals, including sushi, salads and ice creams, all delivered within 15-20 minutes.

The ability to access these quick and convenient services on demand will be important to the next generation. They will not be just looking for an affordable apartment but one that will connect them to the things that they need to enjoy the lifestyle they want.

These subtle things will influence how we live our lives and it will influence how properties are developed, purchased and sold.

As agents we are now seeing the tip of the iceberg when potential buyers starting to ask about the Wi-Fi accessibility or mobile phone coverage of a property. Of course, they will still want to know how far to the school and the location of the nearest bus route, but things are changing.

Just like you wouldn’t select a stay in a hotel that doesn’t offer Wi-Fi access, future home buyers and renters won’t select a property that doesn’t have great connectivity and access to on-demand services.

Agents will need to understand not just the physical attributes of a property but its virtual aspects as well

About LJ Hooker

Established in 1928, LJ Hooker has grown to become Australia’s best-known and most trusted real estate brand.

LJ Hooker features one of the largest residential and commercial sales and property management teams in the industry with more than 8,000 sales professionals, property managers and support team members.

With a franchise network of more than 700 offices across the Asia Pacific including Australia, New Zealand, Japan, Indonesia, Papua New Guinea, India, Vanuatu, Dubai and Hong Kong, LJ Hooker sold more than AUD$19 billion in real estate last year. The company is one of the largest property managers in the region, managing 130,000 properties totaling $75 billion for investors across Australia and New Zealand.

LJ Hooker also provides a full suite of commercial services across Australia and New Zealand including buying, selling and leasing real estate for commercial or investment purposes. Under its LJ Hooker Commercial brand, LJ Hooker has 28 commercial offices supported by 300 commercial experts across the office, retail and industrial sectors.

LJ Hooker is the only real estate agency to offer its own brand of home loans. Established in 2005, LJ Hooker Home Loans is experienced in the non-bank mortgage market with a unique business model of home loan franchisees and loan writers who operate nationally. The LJ Hooker Loan book tops $4.9 billion with more than $1 billion in loans settled annually.

For more information visit ljhooker.com.au

 

Grant Harrod, chief executive officer of LJ Hooker

Grant Harrod

Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.

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