I never did really grasp how significant it was when I first saw it.
I mean I must have walked past it a dozen times at least and not really registered what it was.
And then one day, I decided to give it a closer look.
It was kind of weird too, looked like a broken chain of some sort.
And it had a word “Afterpay” next to it?
“Cute”, I said. “looks like Lay-buying is back in vogue!”
Little did I know.
This is a quick recount from a walk through my local shopping mall almost 2 years ago now.
There was only one store which had this sign on its window then. Everywhere now, and not just Afterpay either. Some have half a dozen different Buy Now Pay Later (BNPL) companies.
I didn’t until recently fully grasp the impact these BNPL companies would have on the retail experience of Australians.
And now this company and others, like ZipCo, are expanding for the first time into the US.
I’m now certain I will be the last member of my family to ever own a credit card. My kids simply won’t ever need to.
The pace of technological change is speeding up. Sometimes its quite hard to keep up, let alone know where to look for the latest and greatest trends.
But as a member of the Property Sharemarket Economics (PSE) team its vitally important for me to keep abreast of these developments.
And I have discovered two digital solutions currently on the margin which will change the way you next buy or sell a property.
Thanks to my real estate cycle knowledge however, I also know they are about to light a fire under the property market as prices go into overdrive later this decade.
So, it is timely I write to you now with this knowledge.
The best knowledge of all however, remains the 18.6-year Real Estate Cycle.
The Property Sharemarket Economics (PSE) team study the 18.6-year Real Estate Cycle, 14 years up and 4 down with a mid-cycle recession (MCR) interrupting the 14 years’ expansion.
We are guiding our members through the final stages of the mid-cycle recession, ready to position ourselves for the boom to come.
Same, same…but NOT different?
Recently I have written to you about the revolution in digital technology solutions which have revitalized the real estate industry.
If you think about it, not much in real estate has changed when it comes to the buying and selling of property.
When I brought my first home for my family, I asked my Dad for advice on what to look for and say to agents?
He brought the family home some 30 years ago.
After a chat I realized not much had changed in that 30 years. The whole process was still one of willing buyer meets willing seller via their real estate agent.
Because that’s how it’s “always been done” I was told. So entrenched was this thinking that most of us seemingly accepted that as fact.
It has long been an industry ripe for disruption. And in 2020, it took a massive global hit.
Suffice to say, when the 2 factors of your business, buyers and sellers, disappear overnight, then its likely you’ll have no business left.
Now the real estate industry had no choice. Its response though has been remarkable.
It turned to technology.
The result was the equivalent of letting a genie out of a bottle. This industry will never be the same again. But that’s a good thing.
Which leads us neatly to today.
Because this trend is accelerating, incorporating other innovative and seemingly uncorrelated digital solutions right when the real estate clock begins to turn into overdrive.
Today we will discuss two I’ve discovered. They may be on the margins now, but if we sit here this time next year it will arguably be old news.
These things move quick, and if you want to benefit, this is the time to start researching such trends.
You may even find this technology useful for your own property portfolio?
Add this to previous emails I’ve sent to you about how technology is changing the game here.
Anyone who has previously sold a house can attest to the expense of it.
Certainly, large capital gains can offset this to a huge extent. Yet, that money isn’t there waiting for you to access prior to sale.
You must factor in real estate agent commission, conveyancing, auction fees if applicable.
Depending on the size of the property being sold, location etc., these costs can reach almost $20,000 in certain cases.
Most Mum and Dad sellers don’t necessarily have that kind of money at hand. Certainly not before the sale.
Buy now, pay later!
Enter BNPL!
Marketnow, a new product like Afterpay, can now assist with this up to $25,000 worth of fees.
Real Estate agents win as they can now budget for their fees upfront. Meanwhile for the seller they are in the envious position of investing large sums into marketing the property in the best possible light.
And it’s all on an App on your mobile device.
So easy. So convenient too, many people only have one chance to sell their home to gain the maximum they can. Previously onerous marketing costs do have a large say in both the impression potential buyers get and the reach of your marketing campaign.
There are now 40 agencies across the East coast of Australia rolling this App to their prospective clients.
If you are about to sell your own property, and live on the East coast here, it would be very worth your while to investigate such a trend.
Now, if you are a property investor, trust me you have not been forgotten!
If you are one, have you ever thought to yourself “geez, wouldn’t it be nice once in a while to be able to get my next year’s rent up front?”
Well, now you can!
Thanks to an innovation called FutureRent.
And it really couldn’t be simpler.
Just download their App or visit their website, enter your weekly rent total, choose between 1.5 to 3 years loan length (which is really what this is yes?), and bingo.
Their algorithm will determine the annual rent amount they are prepared to forward to you based on the above choices.
The middleman here actually ends up being your property manager. FutureRent contact them to arrange a pre-determined amount of weekly rent to be paid to them.
The rest goes to you as per normal.
Devilishly simple.
So, will you use any of these products in the near future? Are you keen to find more technology products like this that are exposed to the coming speculative real estate boom coming later this decade?
Then you should join the Boom Bust Bulletin.
As a member of the Boom Bust Bulletin. You will receive the history of the 18.6-year Real Estate Cycle, why it repeats, and how you can take full advantage for yourself and your family.
Upcoming editions will focus on how to find companies like the ones discussed here using the knowledge of the cycle.
You will find the information this bulletin provides you nowhere else.
It is 100% exclusive to Property Sharemarket Economics.
And it will cost you less than a single coffee per month. Incredible value.
Join us on this journey.
Sign up now.
Best wishes
Darren J Wilson
and your Property Sharemarket Economics Team
P.S – Go to our Facebook Page and follow us for right up to date information on the 18.6-year Real Estate Cycle.