For younger people who are just starting out in their careers and don’t have much capital in their name, the required deposit is still too much. So even with ‘eased lending’, first home buyers are still priced out of the market.
(PRWEB) November 16, 2013
“Despite lower interest rates and increased lending, first home buyers in Australia aren’t finding houses any more affordable,” commented Rick Otton, the mentor of many property experts in Australia.
Data from the Australian Bureau of Statistics found that first home buyers now only account for 12 percent of home buyers in Australia, (abc.net.au reported on 12 November 2013).
“While banks are lending more for the puchase price, all it’s really doing is attract cash-rich investors who want a high loan-to-value ratio for improved tax benefits. For younger people who are just starting out in their careers and don’t have much capital in their name, the required deposit is still too much. So even with ‘eased lending’, first home buyers are still priced out of the market,” commented Mr. Otton.
“First home buyers will keep getting locked out of homes for sale, because they keep on following the traditional process of buying houses which requires a lot of cash to get in,” he added.
“The real affordable houses are those which are ‘easy to buy’ or those which don’t need a large amount of deposit and new home loans to buy,” he explained.
Mr. Otton discussed that buying a property for sale creatively doesn’t rely solely on big cash payments that’s why it’s more suitable for first home buyers who are low on cash but passionate about their dream of becoming a homeowner.
“Creative strategies can bring together sellers who want to get rid of old debts with buyers who are eager to make the monthly payments. It can also make use of the handyman skills of the buyer rather than demand him to pay up cash deposit,” Mr. Otton shared.
Discover more creative strategies on buying and selling houses through Rick Otton’s limited-edition Power Property Profits Pack. You can log on to http://www.howtobuyahouseforadollar.com/ right now to sign up for a free copy of the package.
About Rick Otton
For over 23 years property millionaire Rick Otton has built an impressive real estate portfolio using innovative strategies that he has developed – strategies in which transactions are made without the need for traditional bank-type loans.
He constantly refines his techniques as he buys and sells properties through his We Buy Houses business which operates in Australia, New Zealand and the UK.
A gifted speaker and educator, Mr Otton conducts regular one-day free seminars across Australia, which build on the the concepts he shares in his 2012 book ‘How To Buy A House For A Dollar’, voted by Money Magazine and Dymocks Book stores as one of the Top 10 Most Popular Finance Titles for 2013.
He regularly records and publishes iTunes podcasts via his channel Creative Real Estate.
His innovative low-risk, high-reward approach to Australian real estate investing has been featured in a variety of television programs and magazines, including Today Tonight, Hot Property and Australian Property Investor.
To register for one of Mr Otton’s free Australian one day seminars visit HowToBuyAHouseForADollar.com or phone, in Australia, 1300 888 450.