A growing financial services company expects to write half a billion dollars in Chinese investor loans over the next 12 months.
Ausin Group is a multi-service business set up five years ago to sell Australian property to mainland Chinese investors.
The company now employs a total of 320 staff, with 280 across China and 50 in Sydney and Melbourne.
The group holds an AFSL and ACL for its broker arm, Ausin Finance, which aggregates through Connective.
Speaking to Mortgage Business, Ausin Group general manager Joseph Zaja said Chinese demand for Australian property is only getting stronger.
“In the last year we have written about $250 million in loans,” Mr Zaja said.
“Next calendar year we are on track to write $500 million,” he said.
Ausin Finance employs a team of eight to 10 loan writers and administration staff.
Mr Zaja said the company sold 200 properties in September, 95 per cent of which were financed through Ausin brokers.
“Because we sell a lot of off-the-plan properties and a lot of our projects we sold two or three years ago are coming up to settlement, we have about 1,000 plus settlements for the next three years,” he said.
“So we are gearing up to service our clients.”
Mr Zaja said the company deals with all the major lenders when obtaining finance for its clients.
“We like to have a pretty good spread of lenders rather than having all of our buyers with a single bank,” he said.
“It’s spread between ANZ, NAB, St George, Westpac, and HSBC.”
Approximately 70 per cent of all loans written through the group are for mainland Chinese investors, while the rest are for owner-occupiers who have gained permanent residency.
In addition to property marketing, mortgage broking and financial planning, Ausin Group also employs a team of 40 to help with the immigration process.
Apartment sales are popular with investors, while house and land packages are preferred by owner-occupiers, Mr Zaja said, adding that LVRs are typically much lower for overseas buyers than local investors.
“LVRs are usually between 70 and 80 per cent,” he said.
“Some banks will only lend at 60 per cent LVR. So our buyers need to put in a lot more equity."
The risk of Chinese buyers not keeping up with their repayments is quite small because usually their income for the property covers the payments, Mr Zaja said.
“Usually they have to put in a lot more equity than Australian investors do,” he said.