(Sourced from Australian Broker)
Brokers in Australia should look to diversify their business and expand overseas in 2016, as the Australian property market starts to come off the boil.
According to a recent poll conducted by Australian Broker, 53% of brokers agreed that overseas expansion would be a good way for them to diversify their services this year. One of the brokers who have sought greener pastures overseas, Josh Gilbert, is the managing director of a Loan Market franchise in St Kilda, Melbourne. He diversified his business into Malaysia last year, saying that the current property market conditions are ideal to tap into the foreign investor market.
Gilbert pointed out that it was currently a good time to look at the (Malaysian) market, due to an incoming oversupply of off-the-plan property. Regarding his brokering experiences in Malaysia, he remarked that there were two very distinct markets for brokers looking to expand into the South-East Asian country; the first market consisting of Malaysian citizens, and the other being expatriates living in the country. Both were very different but very strong potential investors in Australian property.
The current political unrest within the country, not to mention the weak economy and plunging currency (ringgit), is prompting many to shift their wealth out of the country, and it’s not just the high net worth individuals. Many from the middle-upper income classes are starting to invest in foreign countries as it ties in with a better lifestyle and education opportunities.
To Malaysians, Australian property is a comfortable and stable decision for those looking to invest. Considering the amount of Malaysians studying and working in Australia, as well the the ones with plans to migrate there, they are definitely at home with the Australian property market and community, which is an important factor to consider.
Australian brokers should take this opportunity in the migration market to expand their businesses to Malaysia. Gilbert says that this not only benefits the brokers, it also provides options for people buying investment properties for their asset portfolio and also buying property in preparation to move to the Land Down Under. Working with local partners and establishing a referral relationship with local businesses is key to succeeding in diversifying into Malaysia. Local financial planners, real estate agents, and migration agents are people whom you would want to establish rapport with, and can help you get in touch with the local market.
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