Strong demand keeps mortgage broker busy
The Gold Coast property market is proving popular with investors and owner occupiers, say Queensland broker Nick Smith.
Smith (pictured above), the director of Red10Finance, says much of his business comes from referrals with borrowers purchasing investment properties driving a lot of his business.
“The Gold Coast especially is not really seeing any market value drops as the demand currently outweighs the supply,” Smith said. “Rental yields are very strong in Queensland, and this is making it very attractive to both investors and potential sea changers.”
A recent report from Colliers reinforces Smith’s observations that the Gold Coast property market continues to prosper with strong demand and prices holding.
Smith, who is based in Burleigh on the Gold Coast, said Red10 Finance, which also has an office in Melbourne, serviced clients throughout Australia including a mixture of small and large business clients and a range of non-business clients.
Brokerage specialises in accommodation loans
“We specialise in accommodation loans – hotels, motels, caravan parks and management rights, however, we also have a wide variety of other clients in manufacturing, childcare, medical and real estate development,” Smith said.
“Our home loan team have access to 45 different lenders, looking after first time buyers, investors and SMSF loans.”
According to Smith, an excellence awardee (finalist) in NAB Regional Broker of the Year at the 2023 Australian Mortgage Awards, business has been busy across the board.
Smith said while there was a pause on interest rate rises in December, this year’s run of rate rises had provided an opportunity for brokers to talk to clients about how the rises affected them and the alternative finance options available.
“The banks will often review clients from a financial performance point of view, but they rarely reduce their rates to stay competitive, this allows us to go to market for our clients,” Smith said.
Broker challenges include growth, bank credit teams
However, Smith said there were several issues facing the broker market, including gaining market share.
“Unless you have a real niche then finding clients can be a challenge,” he said.
“[Also] The quality of banking staff seems to be a challenge; it feels like we are now educating the business bankers on how to write deals not the other way round.
“Service levels from certain banks are also on the decline it feels, whereby the client is no longer their major focus, they have other internal KPIs around compliance, especially in the business lending areas.”
When it came to growing his business, Smith said he and his team had focused on finding a niche market from accommodation in the business sector, to medico and SMSF in the residential space.
He said Red10Finance also kept in close contact with clients and tried to offer them “something different to everyone else, whether that’s amazing service and education and information”.
Brokers need to work hours to suit their lifestyle
When it came to hours of work, Smith said it was up to each individual broker to decide what suited them.
“It’s a personal choice. I like working long hours to ensure my clients get the service and their outcomes they deserve,” Smith said.
“However, it is about working smarter not harder, regular communication can enable you to also enjoy your personal time as well.”
Despite the long hours, Smith admits he loves not having a boss.
“In truth the best part of being a broker is having access to help all Australians and to see them achieve their own personal and business goals.”
What are some of the challenges facing brokers in the current economic climate? Please comment below.