iBuyers may never make it to Canada and raising equity for tech start-ups just got a lot harder.
Technology isn’t going anywhere, but a couple of recent developments this week could have a significant influence on how soon and how deeply they are able to infiltrate our business.
Bernie Sanders, a US Senator and presidential hopeful has a housing plan that would eliminate speculation in real estate by way of a “flippers’ tax, and with it, the IBuyer. It is unlikely that his $2.5 trillion dollar plan will be a reality anytime soon, but it’s already influencing local governments to consider this type of tax as a way to protect affordable housing.
Mike DelPrete, real estate tech expert, is quoted in Inman News as saying, ‘They’re screwed” when asked about how Sander’s plan would impact IBuyers.
Canadian cities have taken assertive action to protect affordable housing by way of the non-residence tax. If IBuyers were to become an issue in Canada, I think it’s a no brainer that these same city councils would shut it down quickly.
The other important development this week was the drama with WeWork. They withdrew their IPO after a huge plunge in their valuation. It seems that the big investors are looking for more than just growth. WeWork, along with most of the real estate tech companies have steep losses and this is going to make it difficult to raise new equity as investors become more cautious.
Technology is here to stay and that’s a great thing because when we use it well, it’s a fantastic tool to help us serve our clients better. We want tech companies to continue to bring us amazing applications but if the big bad guys get slowed down a bit in their sprint to take over the real estate industry, that’s a good thing.