Some individuals are born with a knack for investing. The number of individuals becoming professional investors continues to grow in Australia. An individual who earns this title has proven that they have street credibility. It takes at least two years to earn this title.
Professional investors in Australia are also known as sophisticated investors and experienced investors. They are governed by the Australian Corporation Act 2001 under section 708. The highest honor goes to the individual dubbed a Sophisticated Investor. They possess net assets worth over $2.5 million or have earned $250,000 for the last two consecutive years. The status is solidified with a Qualified Accountant’s Certificate.
The Experienced Investor possesses previous security investing experience and holds an Australian Financial Services License.
A Professional Investor holds an Australian Financial Services License, too. They manage or own over $10 million in assets.
Investors mostly dabble in stock, commodity, and securities investing. Some of them hedge their assets in real estate, too. Investing in real estate presents its own set of risks and rewards. Real estate is an attractive opportunity because it locks in an interest rate. Once the interest rate is locked in, the property serves as a tool against inflation.
Once an individual accumulates a significant trove of assets, several financial doors open up to them. Their assets are put up as collateral when they dive into property investment or purchase. They provide less risk and are among the savviest clients a broker can gain. To maintain this business relationship, it’s important to provide meaningful property prospects and competitive financing products.
Professional Investors Conclusion
At Mortgage Street, we work with brokers and their professional investor clients. We pride ourselves on being forward-thinking and innovative. Our proprietary tools allow us to assess viable risk and provide a compromise between competitive loan terms and minimal risk. For more information, give us a call.