The Rise of AI Could Spell Trouble for Investors
Technology is moving and shaking the world. So much so that almost every aspect of the real estate world has been affected by it. One of the facets of real estate most impacted by technology? Rental property investing.
With the introduction of artificial intelligence and robots in the workplace, rental property investing has been taken over by both forms of technology. As we go through one of the biggest economic and social shifts in history, our finances and investments are going to change more than ever.
Eliminating Jobs in the Rental Market
As new innovations in technology come into play, even more, blue collar jobs are going to be outsourced. The west coast is the first place much of this technology is tested, with things like Amazon Go already leading the pack here. It may become unnecessary for many jobs in the future – McDonald’s and other fast-food restaurants are going with robots, restaurants are relying more on AI to cook the food and you can order via tablet, and retail stores are headed in the same direction. If you go to a grocery store, you can almost always check yourself out.
There are a lot of jobs that are being taken out, which can impact the rental market quite a bit. People will be losing jobs or getting paid less for the same job.
In the next few years, some 80% of jobs will be able to be covered by artificial intelligence. Eventually, AI will even be able to detect which jobs it can take and which jobs it can’t, and then it will work to take them too. Even high earners – the lawyers, the engineers, and the designers may be looking at lower paying jobs.
If you are investing in rental properties, now is the time to do it. You want to do it now. Into the future, fewer people will be able to pay for – or keep – their homes, making the rental market even more competitive, meaning more money in your pocket.
Tech in Real Estate
For investors, technology will be a huge help. It will show you the most profitable investments possible online. Investors can learn more about neighborhoods, potential clients, and industry experts with just a simple Google search. You can see real time pictures of the neighborhood if you are purchasing from across the country. You can also do some searches to see what the neighborhood is like.
Now, you will still need to do the work to decipher your own opinions about rental properties, neighborhoods, and tenants. However, you can use artificial intelligence to determine what your rent should be, flipping costs, and even how much a property will be worth years from now.
To be the best investor, artificial intelligence isn’t enough. You also have to have a great team on your side to work with you – a real people with opinions, gut instincts, and connections will always be a better choice than something that relies on prediction in an unpredictable world.