Mortgage brokers are well-positioned to provide value to property investors by leveraging partnerships, according to senior property expert Julian Fadini.
Fadini (pictured above), director of NSW-based investing group PRPTY 360, said that both property investors and mortgage brokers specialised in their services, but they often dealt with the same client base.
“This positions us to draw on each other's services and partner up providing value to our customers," Fadini said.
Despite the turbulence of the current market, the Australian dream is alive and well.
The vast majority of Australians still consider buying property to be a good investment – and with Australian house values increasing 414.6% in the past 30 years, it’s easy to see why.
Mortgage brokers are trusted by property investors to deliver these sales, writing 67.2% of all new residential home loans between April and June 2023, according to the latest MFAA data.
“The broker channel provides exceptional value to clients, creating more value than a client going to their bank or shopping around for the best rate on their own,” Fadini said.
However, the scope of their services does not often cross over into advising their customers on where to buy their property.
In Australia, mortgage brokers are not legally allowed to provide property advice unless they also hold a valid real estate licence – but they can leverage the expertise of others that do.
This is why PRPTY 360 signed on as a premium sponsor at the 2023 Australian Mortgage Awards, specifically sponsoring the Broker of the Year – Diversification award.
“We support brokers and let them know that we're aware of how much value that they create and partner with them to help their investment clients build a real estate portfolio,” Fadini said.
“It helps diversify their offerings.”
Besides the legalities and the potential conflicts of interests that could arise, brokers often don’t have the time to conduct a thorough property analysis.
On the other hand, this is all Fadini does.
PRPTY 360’s macro, micro, and meso strategy is a comprehensive approach to property investing that takes into account a wide range of factors.
“We provide a complete property acquisition service that delivers quantifiable results. We assist investors by providing privileged insight, guidance, and results, with the explicit objective of reducing risk and maximising investment returns,” Fadini said.
“This is achieved by fusing extensive data analysis with ‘kicking the dirt’ local market fundamentals gained from time spent with local councils, real estate agents and property developers in the area of interest – as statistics in ‘real life’ often look different than on paper.”
This gives Fadini and his team a better chance of identifying investment opportunities that are likely to generate good returns over the long term.
“There’s trends at each level of the property market and you need an expert in your corner to help pick the best strategy and avoid mistakes,” Fadini said.
Fadini said forging a partnership was beneficial for property investors too.
“We don't actually do any broking ourselves … we don’t know how. But our clients will often look for a broker that we can refer to them.”
In the same way that you have your family GP, Fadini said brokers often developed clients for life as they became a trusted advisor.
“Clients can become extremely loyal to the broker,” Fadini said. “Once a broker has provided at least three services or three loans or three coinciding types of advice to that particular client, they often become a client for life.”
“We hope to tap into that relationship and become a trusted partner and property advisor for life.”
The fact of the matter is mortgage brokers often don’t do it alone.
With mortgage brokers already relying on a raft of experts to deliver bespoke services, Fadini said adding one more string to their bow could only make their service more holistic and valuable.
“Building a mutually beneficial partnership can only help us in the long run. We provide property investment advice while you help settle the purchase and our customers get the best of both worlds.”
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