New research has suggested that brokers are losing income by not offering or outsourcing property investment services.
A survey of about 784 property investors found that 69.3 per cent had dealt with a mortgage broker at some point, while 62.8 per cent planned to use a broker to help them finance their next investment.
The survey was conducted by Property Investment Professionals of Australia andThe Adviserâ€™s sister title,Smart Property Investment.
PIPA chair Ben Kingsley said property investment advice was an underserviced market and one that would complement a brokerâ€™s business.
â€œProperty investment is a multi-billion dollar industry â€“ in February alone we saw $10.7 billion worth of investment loans written across Australia,â€ he said.
Melbourne firm Investors Choice Mortgages is one brokerage that offers property investment services, which include online education courses and property reports.
Director Jane Slack-Smith said clients become â€œraving fansâ€ when they are guided to make smart investment decisions â€“ which in turn generates more repeat business and referrals.
Premium Broker outsources investment services to Blue Wealth Property, via Vow Financial. Senior business manager Hector Garcia said that allowed the Sydney firm to provide clients with expert advice while still retaining control of them.
Mr Garcia said brokers who did not offer property investment services were missing an opportunity.
â€œOver the years, weâ€™ve had to grow in the business, and weâ€™ve had to understand that thereâ€™s just not enough in mortgages â€“ not only with income, but the needs of the client,â€ he toldThe Adviser.
â€œI cannot imagine that a typical mortgage broker only doing home loans is going to survive these days. You have to be able to offer more than mortgages.â€
24 April 2014
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