Ensure you never miss an issue of the
real estate business bulletin
Property apps ‘potentially dangerous’

Property apps ‘potentially dangerous’

Investors cautioned
by Georgia Brown 0 comments

Following the recent launch of multiple property-focused smartphone applications, landlords and property owners have been urged to consider some of the online tools’ potential flaws.

Following the recent launch of multiple property-focused smartphone applications, landlords and property owners have been urged to consider some of the online tools’ potential flaws.

Real Estate Buyers Agents Association of Australia (REBAA) president Rich Harvey has warned buyers not to fall into the trap of relying on technology and free online tools exclusively for their purchasing decisions.

Mr Harvey’s warning follows the recent launch of several new smartphone apps directed at property investors, some which give real time national data to home buyers and renters, and others which are aimed at helping maximise investors’ tax returns.

According to Mr Harvey, while there is a flood of free information available on the internet and via mobile apps, the danger for buyers and investors lies in how this information is used.

“Take the investor who sees a report promising high capital growth and yield based on two years’ figures, then buys a property, but has major regrets two years later when developers flood the market or the mining boom subsides,” Mr Harvey said.

“While an app can punch out a price estimate in five seconds, it can takes years of training and experience to understand property values accurately.

“Engaging a buyer’s agent adds yet another layer of protection by analysing the data, negotiating for the purchaser and protecting them from making an emotional decision rather than an informed one.”

Mr Harvey said many free valuation tools and technology apps are flawed and fail to take in renovation works and aspect.

“There is no dispute that technology has enabled faster delivery of information across a multitude of devices and in a more efficient time frame, but it’s alarming to think that people are basing the biggest financial investment decision they’re likely to make in a lifetime on some free online tools,” he said.

“These apps generally don’t provide any financial advice, but simply offer a one-size-fits-all database of information and documents on which the naive investor needs to make a decision.

“It might seem like you’re saving money in the house hunt by relying on property apps and free online reports, however it could be far more costly in the long run if you buy an unsuitable property.”

Property apps ‘potentially dangerous’
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?