The threat of a property bubble has been hovering over the real estate Australia market for quite some time now since the median price for Sydney and Melbourne properties recorded sharp gains in the past couple of years.
(PRWEB) July 27, 2014
A new survey from Fairfax Media revealed that economists believe that majority of Australia real estate are overvalued. But despite that, they don’t think that this would trigger a crash, Sydney Morning Herald published on 10 July 2014.
In light of this real estate news, Rick Otton, a respected property coach and best-selling author, explains that whatever direction the market may take, seller finance strategies could help both homebuyers and property investors purchase houses for sale.
“The threat of a property bubble has been hovering over the real estate Australia market for quite some time now since the median price for Sydney and Melbourne properties recorded sharp gains in the past couple of years. But in a recent survey of 25 leading economists in the country, the participating experts completely debunked all these fears, with one respondent explaining that even though prices are expensive, compared to both local and international standards, they are still not ‘unsustainably’ high,” Mr. Otton discussed.
“Although hearing expert analysis on market trend gives some people peace of mind, we shouldn’t depend our decisions too much on estimates and predictions, because you’re never really sure if they’re going to come true or not. Remember that the future is uncertain, and a lot of things may still happen that may change the path of the real estate Australia market for the better or worse,” he added.
Mr. Otton also shared in one of his recent interviews for We Buy Houses Radio that to protect property investments in case the market goes south, people should start entering the market with the help of seller financing.
“If you want to make sure that the value of your home is recession-proof, you have to enter the market with the a strategy that allows some flexibility on how you pay for the property. In that way, you – the investor – can come in without having to take out a new bank loan or spend a hefty amount of deposit up front. This greatly minimises your risk of ending up in negative equity if the market suddenly crashes,” he said.
“The way it works is to have a buyer negotiate for flexible payment terms instead. For instance, rather than take out a new bank loan, the buyer may negotiate to assume the existing financing and pay the remaining equity in increments. The flexibility makes it more convenient for the buyer to make the purchase. At the same time, a seller will be able to move away from unwanted debt much more quickly,” he explained.
The We Buy Houses Radio is a weekly broadcast featuring Rick Otton and his creative solutions on how to solve common property problems in today’s market. Visit http://WeBuyHousesRadio.com/ to catch all of the episodes and transcripts.
Australian property investment specialist, Rick Otton, has been developing, sharing and teaching his innovative real estate strategies for 23 years. As the founder and CEO of We Buy Houses, which operates in the US, UK, Australia and New Zealand, he is known for introducing cutting-edge techniques that have enabled previously disenfranchised people to get out of the rental cycle and into their own homes.
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. His real estate book, published in 2012, ‘’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.
As well as conducting free seminars, workshops and conferences in the UK and Australia, Mr. Otton releases a weekly podcast on iTunes, Creative Real Estate. In these he shares examples of real transactions, and you can listen to his students share their own experiences using his strategies.
Go to WeBuyHousesRadio.com to listen to Rick’s free podcasts.