With the way technology is evolving, the client-investment advisor relationship in real estate is also drastically changing. Real estate investors are changing the way they do business. And investment advisors need to keep up with them to find success. Various causes have contributed to these developments, including changed customer expectations, new technology, changing demographic patterns, and significant regulatory changes. Let us look at these changes impacting the client-investment advisor relationship.
Rising Client Expectations
Client’s demands are drastically transforming from their investment advisors in 2022 and beyond merely managing their investment portfolios. They prefer more comprehensive guidance and an advisor who knows their whole financial well-being. They expect their advisor to assist them in various areas, including financial management, debt management, tax preparation, and real estate planning.
More than ever before, property investment experts need to be proficient in identifying changing trends in the advisory business and adapt accordingly. Being a holistic investor is the key to client retention.
Technology is ruling the game.
Technology is transforming many aspects of our lives, and the investment advisory industry is no exception. More clients demand technology-enhanced experiences, which can significantly influence investors’ overall satisfaction with their advisors.
Most of the clients prefer to view information about their investments and check the status of their accounts electronically. Investors would like their property investment experts to have access to technology that provides timely alerts about changes in the market or news affecting their portfolios. However, first-hand information about variations in the real estate market can be obtained from any of the real estate investment blogs.
Two key factors drive the importance of technology in client-investment advisor relationships: Clients want more than just access to information; they want a seamless experience that makes them feel like they are being taken care of every step of the way and a desire for transparency and control over their investments.
Change in Demographic Trends
Due to changing demographics, we are witnessing a generational wealth transfer from baby boomers to younger generations. The current generation of retirees, the Baby Boomers, has been the largest real estate contributor for decades. They have driven demand for housing and office space, with many downsizing or moving to senior care facilities as they age. The next generation of buyers will be Millennials (born between 1980-2000) who are currently in their 20s and 30s. These younger buyers are less likely to purchase homes or other real estates than Boomers, often choosing to rent or live with roommates instead. A deep dive into some of the property investment blogs can give more insight into the statistics of changing demographics.
This demographic shift will affect the types of properties that investors purchase and how they sell them with advisors. Many of the younger clientele want to deal with an investment professional who can advise them on environmental, social, and governance (ESG), Socially responsible investing (SRI), and cryptocurrency investment techniques.
The effect of Covid-19
Post-Pandemic has brought together many upheavals. The supply-chain disruptions and inflation are wreaking havoc on the economy. 2022 will be critical for the intelligent investor who understands and can capitalise on the developments accelerated by Covid-19. Uncertain and unpredictable markets can provide an adequate opportunity. However, with rising property demand and inflation, finding the appropriate property investment solution has become difficult, which is the critical factor impacting the client-investment advisor relationship.
The epidemic has driven a change in how advisors communicate with their customers. Virtual client meetings have increasingly overtaken in-person meetings, altering the nature of the advisor-client connection. This transition gives advisors the chance to rethink how they do business. Digitising the entire investment process will help advisors to attract more clients.
The relationship between a client and client-investment advisor has the potential to transform in the coming years, with both parties having a sizable impact on each other’s businesses. Real estate is full of surprises, but it could also leap forward with new technology, changes in thinking or legislation, and other factors.
Clients will benefit from lower fees, better returns, and greater transparency. With better access to their investments, they can make more educated decisions about where their money is invested. And when real estate and technology collide, it may create an indelible mark on both industries for generations.