(PRWEB) June 13, 2014
A new research from ME Bank revealed that 19% of first home buyers are not financially prepared to pay for their mortgages when interest rates return to normal. Interest rates are currently at 5.95%, and analysts expect a $1000 increase on monthly repayments when rates return to normal, news.com.au reported on 9 June 2014.
In light of this alarming news, Rick Otton, owner and director of We Buy Houses, tells Aussies that there is a way to buy homes for sale without worrying about fluctuating interest rates.
“Interest rates have been lower than average for the past few months, and this condition helped a lot of Aussies to enter the market without spending too much cash. But remember that whatever goes up must come down and vice-versa, so it’s not a surprise that interest rates are on their way up again now that the real estate market is stabilising,” according to Mr. Otton.
“Home buyers and property investors, however, don’t have to be dependent on market conditions to make profitable investments. One way to get around the risk of fluctuating interest rates is by assuming the existing home loan that is already in place. Using this strategy not only eliminates the need to create a financial buffer for higher monthly payments when rates increase, but it also alleviates the pressure of saving up and paying for a large deposit fee just to get in a property for sale,” he continued.
Mr. Otton explained further in a recent interview for his Creative Real Estate Podcast, that people should start exploring new solutions for their property problems now that market conditions are constantly changing.
“The conditions which made the traditional process successful in the past are no longer present, so people must now look for more creative and efficient ways to achieve what they want with less resources,” he said.
The Creative Real Estate Podcast is a weekly podcast featuring Rick Otton and his creative solutions on how to solve all of your property problems. Visit http://creativerealestate.com.au/ 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 CreativeRealEstate.com.au to listen to Rick’s free podcasts.