Login
ISCOVER
Brokers with a foreign background are capitalising on the increasing number of Australians born overseas.
Reserve Bank of Australia deputy governor Philip Lowe revealed in a speech last week that the number of Australians who were born overseas has now reached 28 per cent.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“This share has been steadily rising since the 1940s and is currently at its highest level since the late 19th century,” Mr Lowe said.
“It is also worth noting that, on average, new immigrants to Australia are almost 10 years younger than the average Australian. Immigrants are also more likely to have a post-secondary school qualification than the average Australian.”
Capkon Investments chief executive Kiran Thapa said almost all his clients were Nepalese immigrants or Australians with Nepalese backgrounds.
He told The Adviser they generally save a greater proportion of their income than Australian clients, with 20 per cent deposits being common.
They were also less likely to default on loans because they could rely on overseas relatives or the local Nepalese community to help with any shortfall, he said.
Mr Thapa, who came to Australia in 2007, said his cultural knowledge and understanding of the Australian system gave Nepalese immigrants the confidence to enter the property market.
“If I wasn’t there, I don’t think we would have this many Nepalese buying houses,” he said.
ACA Mortgage Solution's senior manager, Raymond Xue, moved to Australia in 1994 and generates about half his business from local and overseas-based Chinese clients.
Mr Xue often encounters wealthy Chinese who want to pay cash for a house in Australia. However, he educates and advises them they would be better off using that money to place deposits on several properties and then borrow the difference.
He also deals with less wealthy Chinese who want to buy a third property. The Chinese government prohibits citizens from borrowing money for a third property in China, so he helps them make their next purchase in Australia.
Mr Xue added that it is often cheaper to buy in Australia than in the major cities in China.
Sydney-based Loan Market broker Katharina Hartanto moved to Australia in 1984 and generates about one fifth of her business from Indonesian clients.
About 70 per cent of those clients buy investment properties, she said. “Property prices in Indonesia are very expensive and they think Australia is cheaper,” she told The Adviser.
Ms Hartanto said Indonesians generally save a greater proportion of their income than Australian clients and are also less likely to default.
“Many of the Indonesian parents will help their children with the deposit,” she said. “They never miss payments – it’s very rare.”
Ms Hartanto added that Indonesians also usually provide more referrals than Australian clients.
Prominent demographer Bernard Salt, who has been speaking at the Better Business Summit this past month, said the most recent census showed a major increase in the numbers of Chinese, Indians and Filipinos who were moving to Australia.
The best way for brokerages to capitalise on this demographic trend was to hire loan writers from those communities, he said.
