In a bid to stay ahead of the investment pack, a growing number of brokers are moving into the real estate space.
According to mortgage brokers who have made the move, diversifying their revenue stream into the real estate industry is the “key to growth”, as the tightening regulatory and lending environment left them struggling to grow their earnings.
One Agency founder and CEO Paul Davies believes it is no surprise that mortgage brokers are making a move into the real estate space.
After all, real estate stands as “a great fit with their existing business”, allowing them an opportunity to add another revenue stream without heavy costs or operating overheads, he said.
“And when you have a changing economic and regulatory environment, diversifying helps you stay ahead,” Mr Davies continued.
Further, banker-turned-broker Martin Walmsley highlighted the real value in the rent roll.
With the fallout from the investigation of the royal commission and the Australian Securities and Investments Commission (ASIC) into the mortgage industry increasing the workload required to close a deal, a good mortgage broker today “lives and dies by their trail book”, according to him.
“The rent roll brings in another steady revenue stream, potentially doubling your monthly guaranteed income,” Mr Walmsley said.
Apart from additional earnings, the banker-turned-broker believes that moving on to real estate has helped him do more for his clients.
After all, he notes mortgage brokers and real estate agents working side by side as essentially covering the most crucial stages of the property cycle.
“As a ‘one-stop shop’, I can offer more to my clients,” he said.
It’s a sentiment with which broker and agent Levent Ince agrees. He has highlighted the importance of building good relationships with clients as a means for “natural progression”.
Backed by 18 years of experience, Mr Ince has worked mostly with existing home owners who are ready to expand their portfolio.
“Once you’ve built up a level of trust, it’s a natural progression for you to manage their rentals,” according to the agent-broker.