The basic rule is that supply and demand will determine prices. What we’re seeing is that supply is limited, especially at the premium end of the market, and demand is definitely high...
(PRWEB) July 03, 2014
Well-known and respected authority on the Australian property market, Rick Otton, has recently addressed media speculation that wealthy foreign investors are putting upward pressure on sales prices of Australian residential property.
“There has been a lot of reporting lately by several well known media outlets, including The Australian, about the effect that foreign cash is having in property prices in this country,” said Mr. Otton.
“The theory goes that wealthy investors from overseas, especially south east Asia and China, bid on properties in Australia that are in excess of their actual worth. The reasons are diverse, from side-stepping restrictive home ownership laws in their own countries, to being drawn to the attractive features of the Australian property market such as the yield and potential for capital gains,” explained Mr. Otton.
“The reports go on to say that this is having the effect of pricing many “mum and dad” buyers and investors out of the market,” said Mr. Otton.
“We’ve got a situation where the regulatory authorities, such as the Reserve Bank of Australia and the Foreign Investment Review Board, are saying that this isn’t a problem. At the same time, buyers agents on the ground, particularly at auctions are saying that it’s an open secret in the property market in Australia that foreign cash is inflating asset values,” Mr. Otton went on to say.
“The basic rule is that supply and demand will determine prices. What we’re seeing is that supply is limited, especially at the premium end of the market, and demand is definitely high, as shown by rising property prices over the last 12 months,” said Mr. Otton. “If you factor in buyers from overseas that’s only going to add more demand to the market,” he went on to say.
“With all of these strong opinions and different points of view, it’s sometimes easy to get disheartened as an investor and assume that the chance to make money has passed by,” said Mr Otton. “What I would say to people who are feeling that way is that there are ways to make money in an expensive property market, as well as a cheap one, if they are prepared to use some creative and innovative real estate investing strategies,” Mr. Otton said.
“With research and work, these strategies can pay handsome dividends, even when the prevailing market sentiment is negative, as stories like this one show,” said Mr. Otton.
Mr Otton invites investors interested in hearing more about his innovative and proven strategies to subscribe to the free iTunes podcasts at http://www.CreativeRealEstate.com.au.
For over 24 years property investment specialist Rick Otton has built an impressive real estate portfolio using innovative strategies that he has developed – that don’t require taking out 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 free seminars across Australia, which build on the concepts he shares in his book ’How To Buy A House For A Dollar’. The book was voted by Money Magazine and Dymocks Book stores as one of the Top 10 Most Popular Finance Titles for 2013.
He regularly broadcasts, records, and publishes the transcripts of, his iTunes podcasts via We Buy Houses Radio.
Known for his innovative low-risk, high-reward approach to Australian real estate investing, Rick has been featured in a variety of television programs and magazines, including Today Tonight, Hot Property and Australian Property Investor.
Subscribers to Mr Otton’s We Buy Houses Radio no-charge podcasts receive a complimentary Property Investor’s Tool Kit. To learn more visit http://www.CreativeRealEstate.com.au.