Investor: Rob Lees

ROB LEES
Franchisee, Mortgage Choice 
Blaxland and Penrith, NSW

Is it harder to get investor loans over the line?

Not really. It depends on the client really, and their circumstances. The main thing is they need to have enough equity, and they need to be able to service the loan. Sometimes people will do their own numbers and they will see that they can get a 5% rental return and interest rates are at 5%, and on their numbers it is not really going to cost them anything much to hold. They don’t understand why it doesn’t service, and that’s because the lenders normally add on a margin to the interest rate. So they still need to have enough equity and they still need to prove serviceability. But it’s really just like any other loan. You have to do that with any loan really.

How demanding are investor clients?

I don’t think they are really any more demanding than any other clients. It’s just such a mixed bag. It’s not really demanding, but they sometimes just want a bit more information.

Do investor clients require much education?
I really do spend quite a bit of time with people, talking it through and explaining. They hear things being thrown around, like negative gearing. But most of the time, certainly first-timers don’t really understand what it is. So I show them how it works and I model it. I do spend a bit of time with them. I also talk about the things to look for when buying properties for investment. And I give all our clients information from RP Data and that kind of thing. So I try to act as a resource and I am happy for them to contact me to talk through what they are looking at doing.

Do you think investors require a high-touch service?

Not necessarily. It just depends on the person. Some people, whether buying owner-occupied or investment, are high maintenance. And some aren’t.

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

I think the greatest benefit is the ongoing relationship. It’s really good when we can be looking after them and we’ve got multiple loans. Obviously multiple loans is good because that’s more business, but it’s all about relationships and it’s just great to actually be working with someone when they come back again a year later, or a couple of years later, and we’re able to work with them over a longer period.

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

I just think education is important, especially the hand-holding thing with the first-time investors. They really want to talk it through.

Check out the rest of the Investors Feature.