In the current economic climate, however, more and more are discovering that they now owe more than the property can be sold for
(PRWEB) November 29, 2011
Rick Ottin has for years been known as the property investment innovator who continually reveals emerging strategies and little known secrets of real estate investment. In a recent podcast, the recordings of which have just been made freely available, he tackles the problems associated with ‘buying off the plan’.
When people purchase apartments that are still on the drawing board, or which are under construction, they are lured, Otton says, by the possibility that by entering into a market now, by the time the project is completed, their property will have appreciated in value.
“All too often though, home buyers who buy ‘off the plan’ borrow as much as 100% of the property’s value. If the market drops, as it has in recent times, they enter the volatile realm of ‘negative equity’ - their property becomes worth less than than the amount they borrowed” explained Mr Otton.
Many people in the past have used this type of property investment as a ‘nest egg’, but, as Otton’s case Podcast study shows, these days such decisions can be fraught with problems.
“Australia has weathered the global financial crisis better than most countries” says Mr Otton “but property developers seem to have borne the brunt of its effect. As a result, they are having trouble selling properties in the developments they have under way, and are loathe to commence new ones.”
“Investors, like the person in our case study, who have purchased apartments off the plan, hope to resell it upon completion or during construction - making a tidy profit along the way. In the current economic climate, however, more and more are discovering that they now owe more than the property can be sold for.” revealed Mr Otton
Creative Strategies Saving the Day
In his new Podcast, Rick Otton reveals some little known secrets of real estate investment, secrets he says that the traditional lenders would prefer you know nothing about. By implementing rent to buy strategies, it is possible for both buys and sellers in this market to discover a win-win situation.
Otton is famous for his ‘outside the square’ approach to property investment problem solving, particularly in challenging economic times. It is these solutions that he shares in his free podcasts at CreativeRealEstate.com
To listen to this free podcast visit: http://www.creativerealestate.com.au
Creative Real Estate, is a series of free Podcasts hosted by Rick Otton and accompanied by his side-kick student Ben Chislett. Its goal is to revolutionize the way any first home buyer or property investor buy and sell property and empower where the traditional real estate system has failed even if you don’t have a deposit, bank finance, the house prices are too high or you have no property knowledge at all.
About Rick Otton
Entrepreneur, Author, Speaker and Property Coach
Rick Otton is a self-made multi-millionaire and real estate consumer advocate, property investor and business owner.
He is the founder and director of We Buy Houses Pty Ltd, a leading property enterprise which has successfully expanded into the international markets of Australia, United Kingdom, New Zealand and USA.
In 1991, Rick Otton uncovered an innovative strategy of buying and selling real estate and went on to amass a portfolio of 76 properties in his first 12 months of investing. Rick buys, sells and trades property, using little or none of his own money, and structures transactions to create positive cash flow.
Since 2001, Rick has taught nationally and internationally over 35,000 students how to buy, sell and trade residential property without getting bank loans or acquiring debt, using little cash and minimising risk.
Many of Rick’s students have been able to create wealth, buy their first home, restructure a negatively geared property to make it cash flow positive and build their property portfolio year after year.
Rick’s mission is to transform the way people buy and sell property - to empower others with the knowledge there is another way. He regularly meets with leading government officials who seek his advice on solving the housing affordability crisis.
His philosophy has been highlighted in various Australian TV shows. He appeared in the ABC documentary ‘Reality Bites’ as well as ‘Today Tonight’ and ‘Hot Property’.
Rick has also been profiled in numerous national and international magazines and books as he shows everyday people how to create wealth in real estate, without bank loans or saving large deposits.
Learn more about Rick at http://www.rickotton.com