(PRWEB) February 22, 2014
Harry Dent, an American economist and demographer, is claiming that the Australia real estate values could plummet up to 50 percent after reaching levels 10 times higher than average income levels, (Watoday.com.au reported on 16 February 2014).
According to Dent, bubbles often burst after they reach the point where houses become so unaffordable. Currently, real estate prices in Melbourne and Sydney are 10 times higher than the average income rate.
Despite the gloomy predictions of some industry commentators, Australian property investor Rick Otton isn’t alarmed by the findings.
“I always explain to my students that the Australian real estate market just follows a cycle. Whenever things go up, eventually it will come back down. Right now, the market is on an up cycle and as a result property prices are reaching record heights. However, it’s normal that the market will eventually turn and the process will simply repeat itself,” commented Rick Otton, a 14 year veteran in the Australian real estate education industry.
“Knowing when the market turns is anybody’s guess. But smart investors are able to adapt to changing conditions and continue to profit regardless of where the market is at. That’s why I have the following recommendations for fellow Aussies - make wise decisions on how to enter the property market. Taking into account 24 years of experience, I find that seller finance strategies are the most flexible because it helps investors enter the market without having to take out a new loan or saving for a huge deposit. Less capital means less risk. And more importantly, seller finance is all about creating positive income streams. So even if the market turns, you are able to secure your cash flow,” he explained.
Mr. Otton then shared in his latest interview for Ready, Set, Boom that the strategies he will share in the one-day event is the perfect solution to prepare home buyers and property investors for any market condition.
“Creative strategies have helped thousands of Aussies buy and sell houses whether it be in a rising, falling, or flat market. And the key to this is through flexible payment terms,” Mr. Otton revealed.
“A major reason why many people get into all kinds of property problems is that they lock themselves into a strategy focused purely on capital gains. Unfortunately, you can very easily lose control over how prices change in the next 7 to 10 years. Seller financing, on the other hand, focuses on the things you can control – and this includes how your property generates cash flow for you. If you utilise strategies that are within your control, any talk of ‘real estate Armageddon’ is pointless because you are no longer dependent on market trends,” he added.
Catch Rick Otton live on 23 February 2014 on the Gold Coast. You can secure free seats to his live training event Ready, Set, Boom by visiting http://readysetboom.com.au/.
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 ReadySetBoom.com.au or phone, in Australia, 1300 888 450.