Two brokers and a buyer's agent tell MPA how they work with property developers.
Two brokers and a buyer's agent tell MPA how they work with property developers.
John Manciameli
Principal
Hunterwood Solutions
Hunterwood Solutions works with developers in two ways:
(1) Via investment property research houses. Hunterwood clients are shown investment opportunities with developers that suit the clients’ investment property aspirations, eg positive gearing. It might be fraught with danger for brokers to refer clients direct to a developer. An investment property research house will work out the best development opportunities for clients to purchase. On the flip side, an investment property research house can work with a developer to bring to market a certain product that best suits the demographic of the area and is therefore more appealing to investors.
(2) By providing home loans after the sale. Hunterwood will find which lender has an appetite for the postcode and security on offer and negotiate a discount on a volume arrangement; we will approach lenders to see who will provide funding for these settlements at a price that reflects the volume coming through. The developer then advertises this service to purchasers.
Daniel di Conza
CEO
Acceptance Finance
Working with property developers forms one of the key referral partnerships that Acceptance Finance nurtures. These relationships are symbiotic for all parties as there is a growing desire from clients to want to add a property to their portfolio. The collaboration of a finance provider and property developer supports that desire by combining a consistent credit application process that Acceptance
Finance has refined over many years with quality property projects offered by our developer partners.
Not all of our credit advisers work with property developers, but those that do seek to establish a clear understanding of the needs of both the developer and their clients, allowing them to provide credit advice in a far more effective manner, meaning fewer complications in the application process.
Ultimately, a partnership of this nature breeds satisfied clients as the process of locating property and then financing it is simplified by the collaboration of experts in both fields.
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Todd Hunter
Founder
wHeregroup
No, we don’t work with developers. Here are the main reasons why.
As a broker and buyer’s agent, I cringe when I hear clients have purchased a property off the plan and want us to write the mortgage. The reason is that there is an above-average chance that the valuation will not come in at purchase price. The reason that occurs is developers sell their product through marketeers, mortgage brokers, financial planners and accountants. And these companies do not sell their products for free either. It allows them to hit a broader market across the world. The commission fees they are paid for this are as high as 6% per property.
Many property companies negotiate huge hidden kickbacks (as big as $60k per property) that developers pay them to sell their products. These kickbacks are never disclosed and the consumer pays for this. This is why so many valuations come in low and make writing mortgages for developers a no-go zone for us.
John ManciameliPrincipal
Hunterwood Solutions
Hunterwood Solutions works with developers in two ways:
(1) Via investment property research houses. Hunterwood clients are shown investment opportunities with developers that suit the clients’ investment property aspirations, eg positive gearing. It might be fraught with danger for brokers to refer clients direct to a developer. An investment property research house will work out the best development opportunities for clients to purchase. On the flip side, an investment property research house can work with a developer to bring to market a certain product that best suits the demographic of the area and is therefore more appealing to investors.
(2) By providing home loans after the sale. Hunterwood will find which lender has an appetite for the postcode and security on offer and negotiate a discount on a volume arrangement; we will approach lenders to see who will provide funding for these settlements at a price that reflects the volume coming through. The developer then advertises this service to purchasers.
Daniel di ConzaCEO
Acceptance Finance
Working with property developers forms one of the key referral partnerships that Acceptance Finance nurtures. These relationships are symbiotic for all parties as there is a growing desire from clients to want to add a property to their portfolio. The collaboration of a finance provider and property developer supports that desire by combining a consistent credit application process that Acceptance
Finance has refined over many years with quality property projects offered by our developer partners.
Not all of our credit advisers work with property developers, but those that do seek to establish a clear understanding of the needs of both the developer and their clients, allowing them to provide credit advice in a far more effective manner, meaning fewer complications in the application process.
Ultimately, a partnership of this nature breeds satisfied clients as the process of locating property and then financing it is simplified by the collaboration of experts in both fields.
Todd HunterFounder
wHeregroup
No, we don’t work with developers. Here are the main reasons why.
As a broker and buyer’s agent, I cringe when I hear clients have purchased a property off the plan and want us to write the mortgage. The reason is that there is an above-average chance that the valuation will not come in at purchase price. The reason that occurs is developers sell their product through marketeers, mortgage brokers, financial planners and accountants. And these companies do not sell their products for free either. It allows them to hit a broader market across the world. The commission fees they are paid for this are as high as 6% per property.
Many property companies negotiate huge hidden kickbacks (as big as $60k per property) that developers pay them to sell their products. These kickbacks are never disclosed and the consumer pays for this. This is why so many valuations come in low and make writing mortgages for developers a no-go zone for us.
