Continuing shift to flexible working hours combined with historically low interest rateshas allowed many Americans to migrate to lower-cost peri-urban areas in search of a better quality of life. This is what the Americans can afford.
Although savings rates skyrocketed during the pandemic, people will still find it extremely difficult to afford housing. In fact, economy problems American millennials couldn’t afford a home most of the time.
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However, despite these and many other serious economic and market problems, residential property The boom caused by the pandemic has changed in purchasing trends and fintech has significantly supported it.
Simplify your real estate business
The process of obtaining a mortgage and buying a home has long been considered outdated. And until recently, since the mortgage itself was invented, there has been very little innovation that has improved the way a young American is introduced to home ownership.
Now, in a sea of new private tech companies, some startups are directly targeting myriad underperforming real estate transactions. These companies are developing innovative technologies that are changing the business. the propertyby dramatically changing the experience of both buying and selling real estate, greatly simplifying processes and thus opening up the market for a whole new generation.
It is true that the US real estate market is currently experiencing amazing buzz given the conditions of the pandemic. However, persistently low inventories coupled with strong demand are pushing prices upward and putting such pressure on the industry that fears of bursting a bubble are justified.
This San Francisco-based cloud software company did this year Forbes Fintech 50 list and currently processes over $ 4 billion in consumer loans and mortgages on a daily basis, working in partnership with 285 financial institutions.
Through To mixpotential borrowers can connect tax returns, pay stubs and online bank statements, thereby speeding up the mortgage approval process through some of the nation’s largest lenders such as US Bank and Wells Fargo.
Also based in San Francisco and featured on Forbes Fintech 50. Divas at home modernized the traditional rent-to-buy model by digitizing the process by buying homes for those who cannot afford a standard mortgage and thus becoming their homeowner.
An advance payment of 1-2% plus a portion of the monthly rent can be used as a down payment if the tenant decides to buy the property at a later stage. In three years, tenants will accumulate up to 10% of their capital.
Implementation of technological leasing solutions in New York, fintech encourages outgoing tenants to give more notice of their intention to leave, thereby helping landlords reduce vacancies by linking outgoing tenants with those wishing to move in next.
This approach frees parties from costly brokerage fees and gives movers the opportunity to sign their next lease 90 days in advance, avoiding the stress of finding a property and going through a typical two-week renovation. Flogging currently operates exclusively in New York, but has firm plans to roll out nationwide after expanding to other major metropolitan areas this year.
An emerging trend prevailing in commercial the property sector involves attracting blockchain technology into the picture by tokenizing properties. An Ethereum standard property token (ERC20) is created to represent shares in a real estate holding, and the total of all generated tokens is equal to the total value of the tokenized / securitized property in question.
Nowadays, the more common tokenized investing in overseas markets has recently gained attention when Liquefy Hong Kong-based tokenized value of a $ 600 million luxury hotel in London. Backed by the royal family in Dubai and registered as a technology partner with Amazon Web Services, the company is convincingly demonstrating how blockchain technology can dramatically change the real estate world as we know it.
Epoch COVID-19 has sparked a significant thirst for transaction liquidity among consumers, and this Boston-based company offers an online platform that facilitates the closure of all-digital real estate.
Providing consumers with the ability to legally sign and notarize documents remotely, Notarize Today he is responsible for facilitating the online sale and purchase of real estate worth over $ 30 billion, and is currently used by more than 3,000 agents.
This investor real estate market also made it to the Fintech 50 this year and allows anyone from a new investor to a global asset manager to buy properties for single-family rentals. Launched in 2019, Suspension takes houses that are professionally managed and sells partial shares to investors for as little as $ 5,000 per share.
It is better
With a mission to make home ownership “easier, faster, and most importantly, more affordable for all Americans,” It is better Completely digitized the mortgage process, eliminating the need for fees, commissions and lengthy branch meetings.
Currently, Better, operating in 44 states and the District of Columbia, has been voted the Best Startup of 2020 by LinkedIn, hiring over 1,500 employees over 6 months and planning to add 7,000 more next year.
Financial technology has been attracting the attention of Wall Street for some time. Companies using innovative technological solutions to optimize economic transactions are radically changing the financial services landscape, and thus the real estate business.
Despite the savings problems for millennials, the upper segment of this generation currently make up the largest percentage of home buyers. 37% (and the younger generation – 14%). There has never been a more important time to modernize the transactional real estate business to meet the needs of new generations.
Beyond this and streamlining processes in an already under tremendous industry, fintech companies provide solutions that will certainly revolutionize the way we do business with real estate and may just be its saving grace.