Property investors were indisputably the stars of the 2013 property market, but don’t be fooled into thinking your investor business will take a back seat in the New Year.
Investors will remain an important client base well into 2014, and smart brokers should be preparing to target this market once again as we move out of the holiday break.
First and foremost, interest rates remain at extremely low levels as we move into the New Year, providing an ongoing incentive for Australians to borrow money and make those property purchases they may have been contemplating for some time and still have good prospects for capital growth in 2014.
In addition to low interest rates, several markets are still offering appealing rental returns, making these property locations an attractive investment consideration, with positive cash flow opportunities still available in some markets for those investors chasing higher income yields
It’s also important to note that the property market really only heated up midway through 2013 and so there will be plenty of investors who didn’t make their move before Christmas â€“ perhaps those who weren’t quite as confident as some â€“ looking to make a more calculated, deliberate move in 2014.
So, by focusing in on investor clients, you could be setting yourself up for a rewarding few months ahead.
While investment activity can ebb and flow, I’d like to point out that investors are always a lucrative market. There will always be active investors, even when the broader market may quieten.
With that in mind, I’m a big advocate of cultivating and carefully maintaining investor relationships, as this can really foster future business opportunities, in many regards.
Investor clients are unlikely to only want to purchase one investment property. In fact, they usually aspire to purchase many more. (Though many will fail to do this without the correct professionals around them.)
So by preparing the appropriate financial set-up, you can help your clients prepare for future investments, as well as lay the foundations for repeat business in the future, when refinancing to release equity or new loan arrangements are required.
Investor clients also make good clients because they usually have like-minded friends who are also property investors â€“ or aspiring to be – and so carefully management of your investor client relations can lead to a healthy supply of referrals.
Remember, property investment is not transactional â€“ it’s a long-term wealth creation strategy. So by maintaining close contact with your investor clients in the New Year and beyond, you’ll help ensure their investment journey stays on track, and ensure any new business opportunities come your way.
Ben Kingsley is chair of the Property Investment Professionals of Australia (PIPA) and founding director of wealth advisory business Empower Wealth.
A qualified Property Investment Advisor (QPIA), Ben holds a Real Estate Agency License (QLD), a Certificate IV in Mortgage Lending and a Diploma of Business and is one of Australia’s leading property investment analysts and advisers.
The Property Investment Professionals of Australia (PIPA) is a not-for-profit association established by industry practitioners with the objective of representing and raising the professional standards of all operators involved within property investment.
As the chair of PIPA, Ben is at the forefront of the property industry and is a passionate advocate of ethical, professional property investment services.
Ben is a regular media contributor, appearing regularly as a panellist and commentator on Sky Business News’ ‘Your Money, Your Call’ and Melbourne Property TV. He also contributes regularly to various print and online publications including Smart Property Investment Magazine.