Education & Work Career change

Why not just find something you enjoy doing every day? This retiring in your 40's dribble is a fools errrand Imo. The closer you get to it the more you realise it's not all its cracked up to be. Get into something you are comfortable doing and enjoy the journey.

 

Beware. Often its just a busted sewer pipe is all....

 

For everyone who has commented here you all raise very good points and i thank you for your input, the variety of responses is what i have been looking for

Mentoring i have thought about, have a couple of leads to follow up and i think would be beneficial

I have thought about this and an area i am keen about, i have had a couple of conversations with a company who is seeing some great growth and hope a job opens up in my area of expertise

 

That article by the AFR is written by a journalist who is pretty much clueless when it come to the MB industry.

If commisions are scraped it will be a disservice to the Australian Public as they are voting with there feet and hearts as the broker market share is expanding at a rapid rate.

It will likely have the same effect as in NZ there fore giving the big 4 more control and less competition as brokers support the 2nd and 3rd teir lenders.

Brokers keep the banks honest and most of us work damn hard. Yes there is the 1%ers who are unprofessional but thats the same with every industry.

I think ASIC will have a glowing review of the 3rd party channel with only a few minor tweaks to current payment arangements. If not then there is something very fishy going on and we will all be worse of for it as the public will be forced to deal direct with banks and we all know how that goes.

As for the cruises and other incentives, that would literally be a handful of brokers who probably work extra hard.

 

3 months will take you into Nov/Dec. Not a good time to looking for a job.

 

I agree... I don't know why anyone would just want to do the 9-5 only for a paycheck and nothing more...yet many do.. To me, I'd think that attitude carries an incredibly high opportunity cost.

 

Good excuse for an extended period of leave and time to think / explore the next move commencing in the new year.

I took 3 months of before I embarked on becoming an MB.

I painted a 4x2 during that time on a very casual basis and decided to never paint a house ever again. It was my 3rd. Slow learner haha!

 

I would prefer to get through first 6 months of FY. Then add all your leaves. This way, at least you have a good portion of your income falls in this FY. Especially if you are negative gearing.
Say if you stop working around Feb. Leaves will take you to March. Then you have about next six months to play.

 

Haha, that's the same thing from my pimp IT recruiters getting their 15% cut from the client rate ongoing for the life of the contract (when all they did was link candidate to client once!).
The rise in brokers is in parallel with the rise in investor loans. There are also a lot of sources to compare loans rates and features.
You provide one service (the application process that is easier). Why should you be paid trail for the life of the loan??. I'm sure all the institutions price this into the loan products, so products would be cheaper without the ongoing commissions.
Graph a bit older, but I would also not be surprised that brokers suggest the products that have the highest upfront and trail rates on offer, not necessarily the best loans for the borrower.

 

Its paid to provide ongoing service to client for loan maintenance and advice.

Also we do a tonne of work for free including full assesments and then email client sometimes with zero response, not even a thanks or acknowledgmemt.

Its also used to reinvest into the business such as rent, staff and promotion.

If its so unfair have a go yourself for a few years and we can chat then, if your still around?

 

I will take this as a joke. You really think they will pass it on?

More people will be on higher rates via direct channel than via broker channel due to the fact we do pricing requests on all deals where applicable. Moot point.

If they pull trails it wont be a viable business model for startups and established therefore decreasing competition which will in fact increase prices.

 

Hand on heart never done that, no not even once.

I would say the major majority would do likewise.

You are believing the propaganda machine.

 

Not saying you personally. But it's the same argument the financial planners ran ("we are not influenced to promote certain products").
The property market is good and running hot now. Good for agents, good for brokers. But in a property slowdown, and an oversupply of mortgage brokers, how many would be tempted, with falling incomes coming in, to push high upfront/trail rate loans! to make up for falling income.

 

Thats a present reality in Perth ATM.

I wouldnt know but would be surprised if brokers did that as a practice. If its discovered the reputational damage would compound their problem.

 

Anyway Andrew_t, as you can see, it may be best to get accurate insight into the industry properly before making a bit career move.
For some like Financial planning you'll likely need to do a course, so check the course in detail to see if it really interests you to do that day in day out.
I do a lot of different type of financial type reporting (from super to corporate hedge accounting products) in BI reporting and sometine I can tell you the lower detail is boring. Accoutants lives are more boring then IT. And do you want to just submit one loan application after another as a broker.
Or whether this is really just a mid-life crisis type of moment. "What am I doing with my life". But then reality hits and your realise the in IT your still on an OK wicket. Earn good money, and invest and learn property from that perspective. Not from working within the industry.

 

The beauty of IT is you can work for any company or business, find what you're passionate about and work your way into IT in that. Having been through a very similar transition recently, 16 years in IT with one company across multiple clients, left and walked into IT role with a company that makes me feel good working for, has made a massive change to my work attitude. As others have said, keep your mind on the end game helps immensely and keep working towards it.

 

It's not the IT industry you felt bored. It's the role(s) and routine(s) in IT you wanted to change.
Why don't you setup your own IT business. At least you don't need to learn the operating side of business. Unlike if you go into a totally new industry, you need to learn not only operational, but also marketing, sales, compliance, culture of industry.....etc.

Broker or FP may make things look easy, in reality, it's a lot of hard work behind the scene.

 

I'm not sure how many brokers would choose try get get the extra 0.05% commission (ie on an avg 400k loan, $200 extra) and then have to try sell an inferior loan, potentially lose the deal etc. Taking away the ethical side, it's just not a financially intelligent move.

As per the job only being about a one transaction submitting a loan so not needing trail is a poor understanding of the industry - brokers post settlement need to amongst other things: manage switching requests, interest only extensions, fixed rates, product adjustments (offset accounts etc), any queries - all of these things are not commission/revenue earning roles. Especially in the case of interest only renewals - many lenders require a full application for this which earns $0 revenue to business, but the average cost of a loan submission to settlement to a business is avg $1000 in the industry - think brokers would be returning phone calls to clients without trail? We'd end up like the UK system of pump and dump with zero post settlement work requirements.

 

At even 1 loan a week, that 0.05% commission difference alone is $200*52 loans = $10400/yr difference.
So say the broker pushes a loan with 0.05% higher loan and trail. So by year 5 the trail difference on 250 loans (1 each week) might be $3-40000/yr+.

And as per Colin's statements "Write off the first 2 years as a break even apprenticeship. Year 3, if you have done the groundwork you will likely earn average wage, year 4 a bit higher and year 5 start to kick it." and "Stats for AFG (Australia's largest aggregator) are 67% leave within 2 years".
In a slowing property market, which broker, faced with lower income and potentially facing changing careers, would not be tempted to go for the slightly higher rate products. The financial planners were also supposed to have their clients best interest in mind!. We'll see what happens in Perth and Darwin over the next few years, and then the east coast when it cools, and there is an oversupply of brokers.

 

@andrew_t, I agree with most others here. You just need a new job within IT industry but with different employers first before doing the big jump to property. IT still pays well compare to the average Australian wage. Not sure what your specialisation is but you need to keep your experience current. Once you leave the IT industry for something else, it would be very hard to come back to it as there are always competitions of newcomers in IT industry working up the ladder. Keep your advantage if you can.

Every job has its good and bad, and I am sure mortgage broking has its bad days where people would want to give up.