The influx of foreign investment is one of the reasons why home values have been rising. Unfortunately for first homebuyers, the high cost of houses has locked them out of the property market.
(PRWEB) May 19, 2014
Luci Ellis, the Reserve Bank of Australia’s Head of Financial Stability, warned first home buyers not to take in so much debt in order to buy property, Newsdomain.com.au reported on 15 May 2014.
While Ellis recognised that some first home buyers might be feeling ‘squeezed out’ of the real estate market, she cautioned Aussies about stretching themselves too thin in order to compete with cash-rich investors.
“The influx of foreign investment is one of the reasons why home values have been rising. Unfortunately for first homebuyers, the high cost of houses has locked them out of the property market. People who are looking to buy a house should be more sensible, practical, and creative when making decisions involving money,” according to Rick Otton, the host of the highly-anticipated tour ‘Ready, Set, BOOM’.
In response to Ellis’ warning, Mr. Otton then shared in one of his recent interview for the second round of his Ready, Set, BOOM tour, that one way to minimise debt in the ranks of first home buyers is to enter the property ladder through seller finance strategies.
“Since we were young, we’ve been taught that to buy houses for sale, we must first save a large amount of cash as deposit and then apply for a new home loan. This process helped a lot of people get a house of their own before the global financial crisis, but this strategy isn’t ideal now that banks have become stricter in approving loans,” Mr. Otton discussed.
Rick discusses further, “seller finance strategies, on the other hand, can help anyone into a home without the threat of accumulating a large debt, because buyers won’t have to apply for a new home loan in this process. This can be done by applying flexible payment terms between the buyer and seller. For instance, a buyer can negotiate to assume existing financing and pay remaining equity in increments. In exchange for flexibility, the buyer will agree to meet the seller’s price. It’s a win-win for both parties because the new arrangement won’t require the buyer to pay a huge amount upfront, while the seller will be able to get rid of unwanted debt quickly.”
Join Rick Otton in an intensive 2 hour session at his Ready, Set, BOOM tour, in Melbourne on 29 June 2014, Sunday, and 30 June 2014, Monday. Visit readysetboom.com.au today to reserve your free seat.
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.