Even for people in well-paid, stable employment, borrowing 95 per cent of the value of a property is risky, but for the more vulnerable, it can be fraught.
(PRWEB) March 26, 2013
The end of March saw the handing down of the UK Budget 2013 and analysts now predict that house prices will likely rise as a result of some its components. Those wanting to learn how they can get a foot in the door before that happens are attending Rick Otton’s UK property investing conference, from 19-21 April.
“One of the most talked about features of the UK Budget 2013 is the move to include older properties in the government’s strategies for boosting mortgage availability,” explained Mr Otton. “And on the surface, this is great. But you don’t have to dig much deeper to see how this will stimulate the market, and may lead to house prices rising.”
“The thing is, those who really need assistance don’t qualify for a traditional home loan. They may not have the required deposit, a good credit history, or, as with most self-employed, proof of stable employment,” he continued. “So no matter how much more available mortgages are, there is a big chunk of the community who may never qualify for one.”
The situation for these people, Mr Otton believes, may actually be exacerbated by the Budget decision, with house prices likely to rise in the short term - putting homes further out of their reach.
The government’s plans encourage traditional lenders, the banks and credit unions, to offer 95 per cent mortgages, with the government to underwrite up to 20 percent through a soon-to-be created indemnity fund.
But Mr Otton urges people to not rush into such commitments before exploring the other options open to them. He is hosting a UK real estate conference at the end of the month at which he will be revealing alternative property investment strategies.
“The UK Budget 2013 has come hot on the heels of the downgrading of the UK’s Triple A credit rating. This may, in the not so distant future affect the employment prospects and disposable income of everyday people,” he said. “Even for people in well-paid, stable employment, borrowing 95 per cent of the value of a property is risky, but for the more vulnerable, it can be fraught. This is particularly so if house prices stabilise and they find they owe more than their property is worth.”
This year marks the 10th Anniversary of Mr Otton introducing the concept of property options to the UK. He is known for his expertise and creative thinking when it comes to matching home buyers with home sellers and facilitating transactions without bank involvement.
To learn more about his strategies on how to invest in property with no deposit visit RickOtton.co.uk
About Rick Otton
Rick Otton has spent decades making money by snapping up inexpensive real estate and putting it to work building wealth, and teaching others to do the same.
He is the founder and CEO of We Buy Houses, which operates in the US, UK, Australia and New Zealand, and through this business he puts his strategies to work every day.
Mr Otton received his start in alternative real estate investment in 1991 in the US, and within a year acquired 76 properties. In subsequent years, he made a fortune using his low-risk, high-reward strategies to inexpensively acquire real estate. He continues to do so.
As well, Mr Otton travels between his home in Australia, and the UK, sharing his wisdom and teaching others how to buy and sell real estate, free from the constraints imposed by traditional lenders.
In 2013 Rick is celebrating the 10 year anniversary of introducing his property option strategies to real estate investors in the United Kingdom - the first person to reveal these ground-breaking strategies. In 2008 he created the first of his ‘Houses for a Pound’ strategies, upon which he grows as markets and laws evolve.
Mr Otton has been featured in a variety of television programs and magazines and in 2013 he published 'How To Buy A House For A Dollar' for the Australian market. This book has been named in the list of the Top 10 Most Popular Finance Titles for 2013, as voted by Money Magazine and Dymocks Book stores. A UK version is on the drawing board.
To learn more about his strategies for UK property investment visit RickOtton.co.uk.