Investor: Monica Van Riet

MONICA VAN RIET
Principal and owner
Mortgage Choice 
South Melbourne, Vic

Is it harder to get investment loans over the line?

I think it’s probably easier, just because they have probably had a loan before. So they probably have a really strong asset base at that point, and have been through the process before. And, providing they have sufficient equity and asset base and everything like that, it generally goes through relatively smoothly and easily I think.

Are there any common issues you encounter with investors?

First-time investors, yes – not being educated enough – and the process of structuring the loans or the accounting and tax implication; the things to do, the things not to do; buying the wrong type of property in the wrong location; not doing enough research; jumping in because they think they are going to miss out because they think prices are going to go through the roof – all those kinds of things. First-time investors need a bit more hand-holding because they have never done it before; they don’t know what to expect and they have to be guided through all the processes. I give them tips and tools that they can use to educate themselves on property investing and figuring out what’s the right strategy for them.

What are the long-term benefits of taking on investor clients?

I think they will potentially buy more than one property. So that could obviously help build up my trail. But I can expand my network and business associates through referrals; through financial planners; through accountants who might in turn refer business back to me. And they might diversify into self-managed super funds or might open up opportunities for me to refer to investment property specialists that we have on our panel. And if they have a great experience, obviously they tell their friends, family and work colleagues as well.

Where do you see the investor market heading this year?

I maybe see a bit more self-managed super funds. And I feel like I’m starting to get more of my first home buyers actually wanting to buy an investment property and are renting where they actually want to live.

Are there any other issues to bear in mind with investor clients?

I think it’s really important investors have a good accountant and financial planner that they have met with before they decide to take the plunge. 

I work in conjunction with accountants and provide the finance guidance on that side of things. Also, very important is that they don’t overcommit on loans and credit cards. It’s really important to keep all that under control and make sure you’ve always got a buffer: when it comes to reviewing the numbers on an investment scenario, I’m very conservative and I think worst-case scenario in terms of how much rent they are going to get, how long the property’s going to be vacant, and things like that.

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