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Brokers have been told to pay close attention to a relatively new market – new buyers whose first purchase is an investment property.
Margaret Lomas, director of Destiny Financial Solutions, told The Adviser that brokers need to adapt to the “entirely different set of circumstances” that have emerged.
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“If you’re approaching a first home buyer in the way you used to approach a first home buyer – which is getting the cheapest home loan with the lowest repayments – you’re going to miss a really important part of the market, which is the first home buyer-investors,” she said.
Ms Lomas will be one of the keynote speakers at the 2015 Better Business Summit, which will visit Melbourne on February 19, Adelaide on February 26, Sydney on March 5, Brisbane on March 12 and Perth on March 19.
Ms Lomas said younger buyers in particular tend to see property more as a commodity, and have no fears about building a property portfolio.
“Younger buyers, not only as a result of the way they were raised but also the result of today’s environment, view everything as quite disposable, which includes the house they live in,” she said.
“They’re quite happy to rent and move about as often as they need to, and when they do buy a house to live in, they tend to be looking more at the investment fundamentals of that property rather than whether or not they like it as a place to live.”
Ms Lomas said brokers should recognise the different attitudes of younger and older investors and market their products and services accordingly.
“Brokers need to offer highly portable and flexible loan options,” she said. “The interest rate doesn’t mean quite as much for a younger person as the ability of their loan to really act for them for their investing lifetime.”
Click here to register for the 2015 Better Business Summit.
[Related: First home buyers are the real game]
