Weak Job Market Will Drive Real Estate Price Cuts, Warns Property Guru Rick Otton

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Recent study shows that UK's unemployment rate has increased since late last year. Property guru Rick Otton discusses the implication of this unemployment boom to the real estate market.

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Property Investment Strategies, Rick Otton

This uncertainty in the job market will surely drag down prices of properties for sale.

Finance experts consider unemployment as the most powerful sign of an impending recession.

That is why UK economists are bothered by the recent study made by the International Labour Organization (ILO) which showed evident deceleration in the economic activity of the country due to the increase in the unemployment rate. Many experts fear that this dilemma will surely lead to UK’s second recession. Even property expert Rick Otton warns that the declining economy will lead to property price cuts.

“It’s actually a snowball effect. A weak economy is characterized by an increase in unemployment. With more people getting laid off, the lesser the buying power. Now sellers are forced to cut prices just to accommodate the few qualified buyers,” Mr. Otton said.

The report said that the growth in the unemployment rate is affecting the whole Eurozone, including advanced economies like Spain, UK and Germany. The report also forecasted the joblessness to increase up to 9pc next year, which is the highest record so far.

“A lot of people are either losing their job or getting wage cuts. If this problem continues and the government doesn’t do something about this, this uncertainty in the job market will surely drag down prices of properties for sale,” he said.

Mr. Otton also added that with the job market in a sensitive state, the banks will be less willing to lend money for purchasing property.

“One of the main aspects the bank looks into when it comes to loan is job security. So it’s hard to acquire loans today because of the unstable job market. How can you pay if you’re not employed? This is the reason why investors and home buyers are looking into the possibilities of creative real estate,” Mr. Otton explained.

“My strategies have helped a lot of people become successful in the property market through alternative lease options,” he said. Mr. Otton has been teaching his students—more than 30,000 to this day, how to purchase properties with no banks loans and with as little cash as possible.

Rick Otton shares his strategies by travelling to different countries and conducting real estate seminars where he explains each investment technique through examples and actual deals. The students also get to interact and share experiences among themselves, which is a very effective teaching method.

“This is a good opportunity for the youth, especially the unemployed, to gain financial freedom in the midst of our weak economic conditions. Unemployment is forecasted to rise in the coming years and it would be a good chance to start a career in real estate investment,” he added.

You can access Rick Otton’s strategy at : http://www.rickotton.co.uk/

About Rick Otton

Rick Otton is an original pioneer of creative property strategies. He is founder and CEO of We Buy Houses, a leading property enterprise which operates in the property markets of the United Kingdom, New Zealand, USA and Australia.

In 1991 he uncovered an innovative strategy of buying and selling real estate and went on to amass a portfolio of 76 properties in his first twelve months of active investing.

Since 2001, Rick has taught over 30,000 students to buy, sell and trade residential property without banks, debt or risk. By employing these same strategies many of Rick’s students have made over a million dollars a year in cash and equity, using little or none of their own money, year after year.

In 2008 Rick revealed his strategies in the United Kingdom and became the creator of ‘Houses for a Pound’.

He has appeared in the following Australian TV programs: 2004 ABC documentary ‘Reality Bites’ and on Today Tonight, Insight and A Current Affair. In October 2007 Rick gave a way a house on national TV during 2 episodes of Channel 9’s Hot Property.

Rick Otton has also been featured in Your Property Network, Australian Property Investor, Lifestyle Trader Magazines and in the books: The Secrets of Property Millionaires Exposed!, Ideas: Original Perspectives On Life and Business From Leading Thinkers, Think and Grow Rich in Property, Insider Property Secrets, and Walking With The Wise.

Mr.Otton can be contacted through his website http://www.rickotton.co.uk

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