In this kind of environment, many end up spending much more on houses than they should because of their desire to be in a particular place. Buyers who are focused mostly on outspending the competition may be risking their financial situation unnecessarily.
(PRWEB) June 01, 2014
The Australian Property Monitors found in their analysis of 2013 median house prices per square meter data that buyers are willing to pay more, even for a small land area, just to live near the city, The Age reported on 24 May 2014.
High demand areas include Albert Park, Middle Park, Carlton North, and South Melbourne.
“Suburbs near the central business district are always prime spots for land and property for sale because it’s near transportation services and other lifestyle amenities, which buyers find attractive. People compete neck to neck just to get a chance to buy real estate in those areas. And whenever demand increases, prices follow,” according to Rick Otton, the host of the highly anticipated seminar tour Ready, Set, Boom.
“Unfortunately, in this kind of environment, many end up spending much more on houses than they should because of their desire to be in a particular place. Buyers who are focused mostly on outspending the competition may be risking their financial situation unnecessarily. Investors must remain objective and practical on how to achieve their goals, especially when home values are expensive. If you come in recklessly, you could find yourself in a precarious situation in the case that the market turns,” he said.
Mr. Otton then said in an interview for the second round of ‘Ready, Set, Boom’ national tours that true affordability is in the terms and not in the price tag of houses for sale.
“In a rising market, it’s important for an investor to be wise with the terms of the transaction. I always tell my students that it’s not about the price, but how you pay the price that makes a house truly affordable. By using flexible terms, an investor may be able to enter the property market without having to take out new bank loans or spend huge amounts upfront. This alternative reduces the risk of overcommitting to expensive mortgages and moreover, flexible terms give you more options to react in case market conditions change. In that way, you can still position yourself for profit regardless if the market continues to rise, becomes flat, or falls,” he added.
Join Rick Otton in the second round of this Ready, Set, Boom national 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.