12:00a.m. 15th October 2008

| By Mark Bode and Damian Bathersby

Investor Finance has closed the doors of its Caloundra headquarters and Coolum, Buderim, Noosa and Kawana branches.

The global economic crisis has claimed one of the Sunshine Coast’s largest financial brokers, with Investor Finance closing its branches.

The company confirmed yesterday that staff at its Caloundra headquarters and Coolum, Buderim, Noosa, Caloundra and Kawana branches had been told the news.

In all, 14 branches around the country are closing.

Investor Finance founder and director Adam Thomas said he was in the final stages of negotiations with a potential buyer.

He said the company had become unviable as a result of banks reducing commissions by 30% to 40%.

“With the onset of the US sub-prime mortgage crisis most mortgage broking business have been hit hard by the rising cost of credit, reduced liquidity and the subsequent reduction in commission payments by lenders,” Mr Thomas said.

“We have had to cut costs in this current climate by closing the retail offices.

“However, many of our strategists already work from home and the change will not impact our level of service to our clients.”

Several callers to the Daily claimed about 15 staff at the company’s Caloundra office on Bowman Road had been told of closures at 10am on Monday, while the Coolum, Buderim, Noosa, Caloundra and Kawana branches were informed throughout the day.

“They didn’t see it coming,” said one man.

“There are a lot of very angry people at the moment.”

The head office in Bowman Road was being cleaned out on Monday but none of the handful of people present were willing to discuss the situation.

The head office had been located in First Avenue, Maroochydore, until about two weeks ago when it was relocated to share office space with the Caloundra branch.

Up to 65 staff are believed to be affected on the Coast alone.

Investor Finance said 10 staff had already lost their jobs but it was hopeful most staff would keep their positions.

Smartline mortgage consultant Bruce McAnally was shocked to learn of the office closures.

“I thought they were going really well,” he said.

“But there has been a big slowdown in the investment property market, which Investor Finance is definitely geared towards.”

A spokeswoman for the Mortgage and Finance Association of Australia, of which Investor Finance is a member, said the closures “seemed a bit sudden”.

“We haven’t been informed about their rapid demise,” she said.

She said its members were battening down the hatches in the current climate.

“In Queensland there has been a lot more movement, at least anecdotally,” she said.