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Jessica Darnbrough
With new data showing the investor market is starting to heat up, brokers are being encouraged to target property investors.
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The latest data from AFG shows investors now account for more than 37 per cent of all loans written – up from the low 30s last year.
Speaking to The Adviser, Property Investment Professionals of Australia chairman Ben Kingsley said there are many benefits for brokers who deal with investor clients.
“Not only do investment properties represent around 30 per cent of the total residential property market, but most investors borrow to acquire an investment property and usually this loan is the last debt to be paid down after they pay off their principal residence, so the loans tend to have greater longevity for brokers,” he said.
“In addition, if a borrower is a successful property investor, they may acquire more than one investment property, which will usually result in this client’s combined borrowing being greater than other types of clients, meaning they are a more valuable client for brokers” – a sentiment that is echoed by Shore Financial’s Alex Nochar.
According to Mr Nochar, investor clients tend to buy more than once – offering brokers repeat business opportunities.
“They also tend to mix with like minded people. So provided we offer excellent service in the first instance, we often find that our investor clients also provide us with a lot of referral business,” he said.
