People have always been conditioned that there is only one way to buy houses in Australia – and that is through bank finance. Unfortunately, this process demands a ton of cash from buyers.
(PRWEB) June 29, 2014
Young Australians are coming up with more creative ways to save money for a deposit. A majority of first home buyers curb their lavish spending habits such as eating out and attending leisure activities outside the home, while others try out more unorthodox saving methods like house sitting, news.com.au reported on 22 June 2014.
Rick Otton, owner and director of We Buy Houses Pty Ltd, concludes that this behavior is an indication that more and more buyers are looking for alternative ways to buy a home.
“People have always been conditioned that there is only one way to buy houses in Australia – and that is through bank finance. Unfortunately, this process demands a ton of cash from buyers. But after the Global Financial Crisis, most people just don’t have enough cash for bank finance,” Mr. Otton said.
“That’s the reason why we’re reading more novelty stories in the papers about how young Aussies are trying to solve the problem of paying high deposit fees. Although these thrifty practices could really make an impact in the long run, it’s not the most efficient way to buy real estate,” he continued.
Mr. Otton said that seller finance is the more efficient option for young Aussies.
“The secret of seller finance is in its flexibility. Through flexible payment terms, a buyer can negotiate to assume the existing loan and pay the rest of the equity in increments. In that way, the buyer would be able to reduce upfront costs and the need to apply for a new bank loan. The seller on the other hand can move away from unwanted debt quickly and generate a passive income stream,” according to Mr. Otton.
The We Buy Houses Radio is a weekly broadcast featuring Rick Otton and his creative solutions on how to solve common property problems in the real estate market today. 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.