Damian Collins on the career he almost had (and the financial advice that changed his life)
There are few more apt backdrops for an interview with Damian Collins than the panoramic views of the Indian Ocean from above the dunes at Longview Cottesloe.
The Marine Parade restaurant sits in one of the wealthiest and most sought-after suburbs in the country and shares the oceanfront with some of Perth’s most successful business people, including billionaire Andrew Forrest.
Momentum Wealth founder Damian Collins.Credit: Colin Murty.
It’s not difficult to see why it’s the suburb of choice for Perth’s elite — including the prominent property investor sitting opposite me — and why the venue is where Damian Collins often starts his day.
It’s a stark contrast from Melbourne’s outer eastern suburbs where Collins grew up, and a world away from the life he expected to be leading.
Collins thought his fate was sealed more than three decades ago when he waltzed out of RMIT University with his Bachelor of Business degree and straight into accounting giant PwC.
Like many young accountants, he had grand plans to rise through the ranks and become a partner at a Big Four firm.
But it wasn’t long before he realised that wouldn’t be achieved through hard work alone, and decided to persevere only until he achieved his chartered accountant certification.
“I realised there was a lot of politics to [becoming a partner] and I thought, do I really want to be here on a partnership treadmill until I’m 60-something?” he tells me.
“Three years and one day — and then I was out of there.”
The years he spent in the tax division surrounded by high net worth clients with burgeoning property portfolios were among his most formative, reigniting an interest in property and providing important lessons for his next venture.
That interest had been sparked more than a decade earlier, when his father worked as a real estate agent.
At 24, Collins began undertaking small-scale developments on the side before leaving his accounting role to pursue them full-time.
Getting continued bank funding was a challenge, and Collins realised the cycle of buying, selling, and forking out taxes was eating away at the potential returns.
And it was then he was given what he maintains is the best piece of financial advice he has ever received.
“A lot of the money in real estate and any investment is made in the hold, not the trade. You buy the right asset, and you hold it for the long term — that’s how you make your money,” he tells me.
“It’s that compounding capital growth. You’re not paying capital gains taxes, you’re not selling, and it just continues to grow over time.
WAtoday reporter Jesinta Burton and Momentum Wealth founder Damian Collins at Longview Cottesloe.Credit: Colin Murty.
“As much as I love development, there are times when you need to sit back and play golf. And that’s just not me.”
Collins left his roots in Melbourne behind in the late 1990s, bound for Perth, the growing city of opportunity where he would go on to meet his wife and build a family.
As Perth’s median house price shot past $300,000 for the first time, buoyed by a mining boom, Collins says he noticed a gap in the market.
Buyers’ agencies were gaining traction in the eastern states, but many scouting homes in Perth in 2005 didn’t appreciate that the agent was there representing the seller’s interests, not their own.
It was then that Collins established Momentum Wealth, a buyers’ agency, mortgage broking and property management service.
“I bit off a lot, and chewed quickly,” he tells me as we place our orders; the fish of the day for me, witlof and walnut salad for Collins.
He later made the move into commercial property before establishing funds management arm Westbridge to help clients diversify their exposure to different assets.
Since then, the two entities have amassed more than $2 billion in assets under management and more than 80 staff.
Westbridge has now expanded east, with a head of capital in Sydney, and Collins sees the company’s ground footprint continuing to grow over the next 10 to 15 years.
WAtoday reporter Jesinta Burton and Momentum Wealth founder Damian Collins at Longview Cottesloe.Credit: Colin Murty.
He also began devoting his time to industry advocacy, serving on the buyers’ agent committee of the Real Estate Institute of WA when he was encouraged to join the board.
Collins would go on to spend 12 years at the organisation, one-third of that time as president — the role for which he became best known and a regular contact for those in the media.
“I would get called at 5am or 6am to come on the radio, and respond to whatever was on the front page of the daily newspaper that day,” he tells me.
“I look back now and, in hindsight, I do wonder how I managed because it was a lot of work, particularly during COVID. It would take up 10 to 20 hours a week.”
“Nothing is going to solve our housing prices unless we get more labour and more houses built, and unfortunately, it’s not an easy problem to solve.”
Damian Collins
The role also saw Collins weigh in on government policy at a time when house prices were skyrocketing and the crippling housing crisis became a hot-button issue for the political class.
With a state election behind us, a federal vote on the horizon, and the housing issue still firmly on the agenda, I’m curious to get his take on the efficacy of the policy pledges of those on both sides.
Collins is adamant the government can do little more than tinker around the edges of a housing shortage created by a failure to sustain the industry during the mining downturn by building social housing and the impact of stimulus and strained supply chains on costs during the pandemic.
“I wouldn’t blame any one government, party or policy, but the downturn was the time to build social homes to keep the [construction] industry going,” he says, as our meals arrive.
“Now [the state government has] got lots of money, and it’s the wrong time to be competing with the private sector.
“Nothing is going to solve our housing prices unless we get more labour and more houses built, and unfortunately, it’s not an easy problem to solve.”
In the current climate, Collins forecasts house prices in Perth will continue to grow between 9 and 11 per cent in 2025.
The only thing he can see curbing that growth is the city reaching an affordability barrier, or a significant decline in commodity prices.
Collins praises the government for its overhaul of the planning system, which he says has ensured the injection of density was handled by planning professionals and not the local council.
It’s a process the Momentum Wealth founder knows intimately, having spearheaded several residential developments that have navigated the system — including one in North Beach which drew staunch community opposition.
“I get that a council should have input, and I’ll probably get run out of town in Cottesloe for saying this, but [the planning body is] the most appropriate body to make the final decision,” he tells me.
The Witlof and Walnut Salad at Longview Cottesloe.Credit: Colin Murty.
After several decades of hard work, and publishing a book summarising his philosophy on property, Collins says he only now feels he has gained more balance in his life — revealing he is taking more holidays than he used to and enjoying life.
The same can’t be said for the father he credits with igniting his entrepreneurial spirit, revealing the 80-year-old is still working on his latest venture and resisting retirement.
“The thing that I learned from him is that when you start and run a business, you’re going to have highs and lows along the way, and some years you don’t make any money, but stick with it because, ultimately, if you do it right, you’ll be better off than you would be working as a partner in an accounting firm,” he tells me.
“I doubt I’ll still be going at that age, though.”
His family may still reside in his home state of Victoria, but Collins says WA is now home — and his decision to proceed with a defence of Perth based on the climate and lifestyle indicates he’s one of us.
As we push our plates away, I inquire about what he hopes his legacy will be.
“The business has been successful, but it hasn’t always been, and there have been some challenging moments along the journey,” he tells me.
“I don’t need to work now, but I enjoy helping clients.
“I certainly hope that I helped people get to where they want to be.”
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