Most people want to own their own home. Unfortunately, with high rental prices, many of them are unable to save for a deposit. And if they do, there’s no guarantee that they will be granted bank financing.
(PRWEB) February 23, 2014
The median weekly rental rate in Melbourne is $387.12 which equates to renters spending $912,500 over a 30 year period. For those who are planning to buy a $610,000 home would have to pay a total $1.34 million at 10 percent interest within the same period, (the Heraldsun.com.au reported on 12 February 2014).
Catherine Cashmere, a buyer’s advocate, states that at this level, Aussies would still be paying off their debts long after they had retired.
“Increasing prices of Australian real estate and rent are all part of the property boom. While rising house prices are good news for property owners, it also becomes more difficult for aspiring homebuyers to purchase their dream home. As a result, many people get trapped in an endless cycle of paying dead rent.” according to Rick Otton, the host of the real estate property tour Ready, Set, Boom.
“It’s like ‘Catch .22’. Most people want to own their own home. Unfortunately, with high rental prices, many of them are unable to save for a deposit. And if they do, there’s no guarantee that they will be granted bank financing. Let’s face it not everyone has a ton of cash or a perfect credit rating. So under the traditional process, it’s very easy for the common person to be locked out,” he added.
Mr. Otton then emphasised that bank finance isn’t the only solution. In a new interview for his free one-day property event "Ready, Set, Boom", Mr. Otton promised to share various seller finance strategies that first homebuyers and seasoned property investors can use to purchase Australian real estate. According to the property mentor, this is achieved through flexible payment terms between buyer and seller.
“Most people assume that ‘affordability’ is based on the price. But if this were true, why do people choose to pay more for a flat screen TV by paying in instalments rather than getting a discounted price by paying in cash? It’s due to the convenience of a payment plan, instead of coming up with the entire amount today. The same apprach can be applied when buying and selling houses. And seller finance is all about convenient payment terms.”
For more info on seller finance strategies, Rick Otton’s property event ‘Ready, Set, Boom’ will stop over at Melbourne on 27 February and 1 March 2014. Visit http://readysetboom.com.au/ to secure your free seats to his free, one-day event.
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.