Ken is a mortgage broker. And so I wanted to have a chat to Ken. Because he’s been a mortgage broker for all deals with a lot of investors so please tell us your story Ken.
Ken: Yeah sure. So I guess I’ll start off with when how I
got into the finance broking space. So prior to becoming a finance broker I got
I was in superannuation for about seven and a half years and there’s quite an
interesting in the interesting role there sort of in the contact centre.
Ken: Ended up going through management. I did have an
opportunity to spin off into financial planning, I did the diploma but never
did. This is before FOFA with the changes and reforms in that space. So I guess
the reason for that was because I think there were some instances where there
was a change now but there was specifically just selling one particular product
depending on which brand you were with. Yeah I mean being in superannuation I
thought of yeah. This is
people’s life savings so it’s really important that they make an educated
choice in terms of what they work as it’s setting them off for
retirement so I ended up moving into the credit space. Yeah I mean I was quite
interested in property investing myself and was thinking about doing it. Bought
my first property up in Queensland which was unfortunately in a mining town.
So during that mining boom Yeah yeah which was going to last
forever. Yes exactly so I’ve moved away from the property investing space and
just purely focusing on credit because I think what’s interesting for me is
that when looking at building a property you don’t have a problem with property
investing it’s just the right one.
Yeah. And I’ve left that to you know real estate agents and
buyers agents and people who really specialize in that space in terms of
identifying which regions know what types what strategy because it’s cash flow
growth then within that what area. Yeah. Demographics. How many owner occupied,
investors, like infrastructure. There’s a whole bunch range of items which I
don’t get into I just purely look at the generic credit side of things.
And working with clients who are buying investment
properties you work with a lot of them.
Yeah. So they for me I didn’t really see too many coming
through last year. I think it’s because of the clamps in
Well to be honest no not a lot of people saw a lot last year
Yeah I think at first the regulators were kind of really
clamping down on that. It was a 10 percent cap and then on top of that was a 30
percent cap on interest only loans. So they peeled back the 10 percent cap on interest only still there. Yeah they’ve removed that too. Now technically speaking there
really isn’t a reason why there should be a difference between an investment
and owner occupied that pricing difference was put in there by the
lenders to prevent to encourage people just owner occupied buyers.
working with investors and I do enjoy working with them
because I think you know in terms of building a portfolio and things like that
I do focus on the credit side and structuring the loans just to make sure that
they line up with not just this coming purchase but you know following on from
the settlement the next moves and things like that it’s important to get that
right. So yeah there’s a lot of thought and I do enjoy working with accountants
financial planners things like that don’t get that wholistic advice to
And what are you finding at the moment in the market like
what’s happening right now.
seeing a lot of first home buyers and home buyers coming into the market.
I think a lot of them are speaking to quite a few of them who did have a
deposit ready to go but they were waiting to see what the market does.
And so what was the main difference between what was
happening during last year being last year 2018 and now we’re in just about
I think yes like it was really strange.
So I’m out in Auburn in open homes on Saturday with the team
Starr partners Auburn And they there was a lot of people reluctant to place an
offer prior to the thing but I do know that vendors were keen to get it.
And since then yeah start of the year January everyone’s
decided this is the year to buy maybe I’m not sure but they’ve now put out
offers and I’m assuming vendors are now finding that they’re inundated with
offers. So yeah they’re thinking about whether they should take that kind of
offer. So yeah it’s been a big change even in just that I should say there’s a
lot more activity on both sides. Yeah at the moment and I am also starting to get enquiry with
investors right now look and I guess I think because officially the
restrictions on the investment credit side of things.
after all the turmoil of last year things are looking a bit more positive.
Yes and I don’t know how that’s going to. I’m interested to
see how that plays itself out in the market because I felt that there was a lot
of money on the side sidelines waiting to come in right. If it didn’t you know
that the market will probably keep doing what it was doing last year. But there
was always potential for like a whole bunch of people to come. And it seems to
be happening okay.
Yeah. Well that was probably going to be my next question
where do you see things happening over the next 12 18 months.
Yeah I’m not too sure. I tend to just play it by ear and see
and and deal with and handle things as they come through. But I think yeah in
terms of from what I am gathering in terms of the media and what’s happening in
the market there does seem to be like APRA is trying to explain why they did what they did in
the previous 18 months. Yeah it makes sense to me in terms of you know
it’s like curbing the downside. I guess if they to let it run the way it was
running Yeah I don’t think it was sustainable. So yes I think it could be
interesting and in yes
signs seem to indicate that there are buyers coming into the market so it could
be interesting in terms of how that plays itself out.
Right well we look forward to hopefully a bit more of a
better year than last year.
Yeah definitely. So. Thanks Ken and thanks everyone for.
No matter where you’re watching or were you listening.
Thanks for doing so again and.
Yes don’t get away listening or watching. Please reach out
to us if you have any questions or suggestions so feedback suggestions for next
episode or who we can talk to.
So thank you.
Ken: Thanks Owen