Technology is impacting all aspects of our lives, but what impact will this have on you and your rental property investments? I’ve recently spent a lot of time studying up on robots, artificial intelligence, and upcoming technologies that are affecting our workforce. Artificial intelligence is literally replacing humans in the workplace! It’s obvious that our society is feeling economic and technological shifts; changes that will shape our lives, pocketbook, and investment strategy more than we might realize.
With the innovation happening in the work world, many jobs are disappearing quickly. Blue collar jobs can not only be outsourced to overseas, but to robots! Wow! If you have kept up with the news and trends, Amazon Go is a leader in self-checkout. There are no human cashiers. Looking forward, it may be completely unneeded to have wait staff at many restaurants. You can order and pay on your phone. Retail shops are moving in this direction as well. Virtual reality now make it possible to shop, try, and buy clothes virtually.
Uber has proven that a lot of jobs can be removed from the world. The “taxi company” that owns no vehicles has just purchased a trucking company with no drivers. Certain projections go as far to say that 80 percent that the future of jobs is being formed and manipulated by the path of technology. Even those who work in tech can’t get around this. Mark Cuban says that the current focus of tech is to design artificial intelligence so that it can write new software.
Potential of artificial intelligence
In the future, it will be possible for artificial intelligence to pinpoint which jobs may be replaced by computers. Then, the software and tools can be created to make that happen. High-income earners may also be out of work. This isn’t all doom-and-gloom. Let’s look at the positives. If robots can do some of our jobs, it will force the human workforce to move up into better jobs and adapt. It will make people be more innovative and entrepreneurial— with a push to do more good for the world.
Real estate and tech
Instead of hurting investors, technology helps. Tech allows for more profitable investments to be made online. Investors are becoming better through more knowledge and better research due to the accessibility of information. I can literally “drive a property” from where I seat thanks to the virtual nature of Google Maps. Technology makes it easy to streamline processes that would have normally taken much longer. Shortened time to complete a task leads to better margins and more efficiency which is so good for ‘the bottom line.’
We know that tech is great for the real estate investors, but ultimately, real humans will still be needed. Humans are the only way for information to be intelligently deciphered, can offer common sense, and deliver personal service. For the real estate investor to win, creative and analytic thinking needs to be employed in day-to-day activities and amongst your team. With people losing jobs, this can disrupt your real estate portfolio because your tenants may not be able to afford rent until they find another job. Being prepared for fluctuations in tech and the economy will help counteract the changes that may happen in the market.