Saving up cash has long been a difficult task to accomplish for first home buyers. The situation is so bad in some cases that it takes people years before they can come up with the required deposit amount...
(PRWEB) May 17, 2014
The CBA Home Finance Index 2014 Report showed that first home buyers are now only saving 14. 1 percent of their income for home deposit savings, News.com.au reported on 13 May 2014.
An average Aussie used to save up 24.3 percent of their salaries two years ago. One real estate market analyst explained that the dropping rate of deposit savings means that Aussies are deferring their plans of buying a property for sale.
“Saving up cash has long been a difficult task to accomplish for first home buyers. The situation is so bad in some cases that it takes people years before they can come up with the required deposit amount for a house they want to buy. Now that house prices are up, the deposit required to enter houses for sale have also gone up with it, and because of that the saving process became a little longer for buyers,” commented Rick Otton, host of the highly anticipated Ready, Set, BOOM tour.
“In an ever changing market, it’s not surprising that more and more people are deciding to postpone their dreams for a little while until the conditions make a drastic change for the better,” he added.
Mr. Otton shared in a recent interview for his Ready, Set, BOOM tour that first homebuyers shouldn’t be discouraged by the current market conditions because there are more practical ways to invest in property.
“I believe that paying a large amount of deposit has become an obsolete way to buy houses for sale, after the global financial crisis for two reasons. Firstly, not everyone has a large amount of cash just lying around their houses, waiting to be used as a deposit fee. Secondly, house prices can go up and then down at any minute, so there’s a big possibility that buyers might get trapped with high debt and a low value home when market conditions shift,” he explained.
“As an alternative strategy, buyers could strike a deal with sellers to pay for the house for sale at the price the seller wants, while the sellers, in exchange, give them some flexibility on how they can complete the payment. In that way, a buyer won’t be burdened with trying to come up with all the cash required upfront, making the buying process faster and much more convenient,” Mr. Otton said.
You can catch Rick Otton live in Brisbane on 15 June 2014, Sunday, and 16 June 2014, Monday. Visit readysetboom.com.au to register for your free seat to the event.
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 workshops 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 upcoming Australian seminars, visit ReadySetBoom.com.au or phone, in Australia, 1300 888 450.