Less cost, more control, and better technology: why the trend towards DIY business models continues to surge
By Jeremy Goldschmidt – CEO at RentBetter
With traditional business models disrupted by technology, new platforms are offering new, improved and often low-cost ways for people to live, work, and build wealth.
Global markets have been disrupted by the emergence of new platforms such as Airbnb, Uber, Xero, Airtasker, Expedia and CarSales, allowing people to generate more income with little expenditure and to undertake the roles that were once reserved for big companies and big budgets.
Self-managed Superannuation Funds have been on the rise for a while now, with the number of SMSFs tripling over the last 20 years. And for good reason – people are realising that they should be in control of their life’s savings and future retirement by doing it themselves, rather than handing over the reins to a large superannuation company and a ‘one size fits all’ approach.
So, why are people turning away from traditional models and making the move towards DIY?
1. Saving Cash, and Building Wealth
The simplest answer to why these DIY models continue to be so attractive to people? They’re saving money. You don’t have to pay someone else to do the groundwork for you when you’re able to take advantage of simple technology, tools and resources that enable you to make money yourself.
Everyone’s retirement plan looks different, but when looking at major assets like property or superannuation, everyone’s priority is to determine the best, most cost-efficient plan to put in place in order to build wealth for the future. Being able to cut costs relieves some of the pressure on your retirement plan, and ultimately means you can retire better – and quicker!
2. More Control and More Flexibility
People have an increasing appetite for being their own boss. Having control over your income and the flexibility to choose where your money goes is an attractive prospect, and provides a sense of security.
There are now 62,000 Uber drivers in Australia in just 11 years since Uber first launched in Australia. People are embracing the ‘side hustle’, and enjoying the flexibility of working for themselves, choosing their own hours and determining their own future. Rideshare models have now completely dominated the market, and essentially made traditional taxi services obsolete.
It makes sense that when it comes to major assets, people crave the same control and flexibility to do things their own way. Relying on a third party can lead to shortcomings when those third parties don’t meet your expectations. Having the freedom to cut out the middleman and take your finances into your own hands is a major factor in the movement towards DIY.
3. Diversifying Income Sources
If the past 18 months has taught us anything, it’s that life can be turned on its head in a second, and our typical income sources and ways of working can change by the day. These tumultuous times have made people realise that backup plans matter. The importance of diversifying our income sources has become increasingly clear – and to avoid being thrown into the financial deep end, having multiple sources of income provides a sense of security.
DIY models enable you to put several eggs in several baskets with little expense, and all from the comfort of your own home.
Through the pandemic, we’ve only seen these DIY models continue to soar. Being confined to our homes and having to handle business through periods of isolation has made people turn to technology, and forced us to figure out alternative ways to generate income that are ultimately more convenient, efficient, and flexible.
It only follows that the same desire is had for what is often people’s biggest asset – property. Self-managed landlords are taking the role of property manager upon themselves, and simple, intuitive technology is making it possible. Online platforms like RentBetter give people all the tools and resources of a rental agent at a fraction of the cost, and landlords are taking charge of their investment properties while saving on the management fees. In 2020, REA reported that 33% of the market was now self-managed.
Every day we’re seeing more and more landlords make the decision to manage their own property rather than using a property manager. Once our customers realise the potential of self-management – the financial savings, the increased control and the convenience of the technology facilitating it – they wonder why they hadn’t done it sooner.
It’s no wonder these methods have been so popular. We’re all attracted to the prospect of gaining greater control over our assets, more flexibility as to how we manage them, and, of course, more cash landing in our pockets. It’s also never been easier to achieve. There are enough resources and user-friendly systems to provide ample guidance, meaning these tech platforms aren’t just reserved for Gen Y and below!
It’s wonderful to see so many people experiencing the benefits of self-management. We have customers ranging from first-time investors to property moguls, young entrepreneurs to retirees! Our platform provides incredible support and takes the hassle out of self-management. We really focus on support and that helps our customers feel confident that they can do it themselves.
No Signs of Slowing
The trend towards these DIY models has seen many traditional businesses feel the need to shift their approach or risk collapse. The recent collapse of global travel group Thomas Cook is a stark reminder of this. The rise of online booking sites such as Booking.com, Expedia and Airbnb put pressure on prices through comparison shopping, ultimately causing the company’s demise.
People are realising the benefits of full control over their financial decisions and rewriting their playbooks. New systems have handed the reins back to the riders, enabling more savings that all add up. And let’s face it, who doesn’t want that?
If you’re a landlord and would like to learn more about how you can take back control of your property and maximise the return on your investment, get in touch with RentBetter today at RentBetter.com.au