Smart off-plan property investors are investing in property that is smart
We discuss in depth the value of location when investing in property. You’ll find dozens, if not hundreds, of articles on this site alone to help you pinpoint the best places to invest in property UK. In this article, I examine some enlightening research into how technology could boost the demand for your buy-to-let property and increase its value.
Home wish lists evolve with technology
It used to be that people desired homes with a piano. When radio and television became readily available, the living room piano became obsolete. Home libraries, games rooms, and studies have all at one time or another been on ‘homebuyers’ and renters’ wish lists, which continue to evolve thanks to technology.
Smart renters choose smart homes
Recent research produced by E.ON has a fund that smart technologies are top of people’s wish lists when it comes to their home. Bookshelves are on their way out – a Kindle can hold thousands of books in a few wafer-thin square centimetres. Unsightly cables and wires are a thing of the past. Pictures hanging on walls are likely to flip from one image to another.
E.ON found that many people have already started to ‘smarten up’ their homes, and a third are planning to do more.
The benefits of technology in today’s homes
With the pace of which life is lived today, it is little wonder that smart technology is increasingly implemented in homes. Almost half of the 2,000 people that were surveyed said they had made their homes smarter to make their lives easier. But this is not the only reason people are turning to smart technologies. Reasons given include:
- Saving money (59%)
- Energy efficiency (55%)
- Saving time (38%)
While new technology is sleeker and better looking, only 6 in every 100 cited this as a reason for upgrading their existing technology, while 17% simply wanted the latest gadgets. Almost as many wanted their home ‘to be more fun’.
But this is what people want now. If you are considering investing in off-plan property, wouldn’t it make sense to know what technology will drive extra demand upon completion? Equipping your investment property with the technology that people want should help you charge a premium rental value. It should also help the capital growth prospects of your investment.
Investing in off-plan property? Here’s what your renters will want in 2020
E.ON also asked what technology people wanted in their home by 2020. Their motivations are the same as now (saving money, an easier life, and so on), but their needs to satisfy those motivations are evolving rapidly:
- Almost half want solar panels or an electricity storage system
- 35% want smart lighting
- One in five want a voice controlled smart hub
- 13% want a charging point for an electric car
Only one in ten people currently have solar panels. Four in ten people said that a solar panel and battery system would make a home more appealing.
How much can smart technology add to a property’s value?
The Barclays Mortgages Digital Homes Report, published in late 2015, found that homes which benefit from smart technologies are more highly valued. It found that homebuyers were willing to pay as much as £10,000 more for a property equipped to meet future needs. It found the top technologies sought by home buyers include:
- Solar panels
- Super-fast internet
- Smart security and fire alarms
- Sensor technologies
- Smart thermostat
Lower down on the wish list are:
- Smart fridges
- Smart ovens
- Smart doorbells
While smart energy meters are likely to be standard by 2020 when you are investing in off-plan property you should consider requesting smart technologies from the developer. These are easier to install before completion and could add several thousand pounds to the value of your property investment, as well as make it more appealing to renters.
To invest in a property that is appealing to tenants and homebuyers, you should be prepared to keep pace with changing technology. Forget CD stands and DVD players. Rid the property of cables and wires. For maximum credibility among tenants and home buyers today, make sure the property is ‘smart’.
Take the first step to a successful and profitable property portfolio. Contact one of the Gladfish team today on +44 207 923 6100 . We’ll be happy to discuss how you can begin building a property portfolio to achieve your unique lifestyle goals.
Live with passion,
Brett Alegre-Wood
