During an economic downturn like what was experienced in 2008, it’s common for the government to intervene and create programs to fuel market activity. The UK is no exception with its Help-to-Buy program designed to encourage UK residents to buy property.
(PRWEB) June 14, 2014
The International Monetary Fund urged Britain to cool its housing market as statistics from mortgage lender Halifax showed house prices rising at the fastest annual rate in more than six years, uk.reuters.com published on 11 June 2014. These numbers are causing fears that UK’s property market is at risk of another house price bubble. Bank of England Governor Mark Carney echoes this sentiment when he warned about the rising number of high loan-to-income mortgages.
Although Bank of England policymaker Ben Broadbent clarified that the UK Property boom isn’t marked by rapid growth in risky mortgage debt yet, Rick Otton, owner and director of We Buy Houses Pty Ltd, recommends that it’s still best for U.K. residents to consider alternative solutions to invest in property and avoid over-committing to expensive mortgages.
“During an economic downturn like what was experienced in 2008, it’s common for the government to intervene and create programs to fuel market activity. The UK is no exception with its Help-to-Buy program designed to encourage UK residents to buy property. And whenever people start buying again, house prices rise along with the growing demand. And when house prices are high, investors end up borrowing more money – leaving them highly leveraged. This is the potential risk UK buyers are facing today,” according to Mr. Otton.
“Now more than ever, we should take the lessons we learned from 2008, and start looking for a more efficient way to buy property for sale, preferably one that will not endanger the financial stability of homebuyers,” he continued to explain.
Mr. Otton said in an interview for Rickotton.co.uk that seller finance strategies can help regular folks buy a home without compromising their financial security.
“First, because of its use of flexible payment terms, it doesn’t require home buyers to pay a ridiculously large amount of deposit fee just to get in a property for sale. And secondly, it helps curb the number of unwanted debts circulating in the market, because it encourages people to assume the payments on old mortgages rather than get new ones for themselves,” he said.
Visit http://www.rickotton.co.uk/ today to get more information about creative seller finance strategies and how these strategies can be applied in changing market conditions.
You may also tune in to Rick Otton’s free podcasts at CreativeRealEstate.com.au.
Rick Otton is a property investment professional who, over the last 23 years, has introduced innovative real estate strategies to the UK, Australian and the United States. His creative ‘low-risk, high-reward’ approach to buying and selling houses is exemplified in his own business, We Buy Houses.
This year marks the 10-year anniversary of Mr. Otton introducing his strategies to the UK, and the 5-year anniversary of his innovative ‘Buy A House For A Pound’ process – one that attempted to be emulated by others. His constant process of strategy refinement, and adapting to the ever-changing real estate market, continues to place him at the forefront of property investment education.
In 2012 Rick Otton published his Australian book ‘How To Buy A House For A Dollar’ which was named in the list of Top 10 Most Popular Finance Titles for 2013. A UK version is on the drawing board for publication in 2014.
Mr. Otton freely shares insights into his non-bank-loan strategies that have allowed everyday UK men and women to beat the rental cycle and have their own homes. He coaches others on how to build profitable businesses by facilitating transactions that focus on the needs of potential buyers and motivated sellers.