RBA Governor’s Warning Proves The Need For Alternative Ways To Buy Property, Says Rick Otton
(PRWEB) July 11, 2014 -- Glenn Stevens, Governor of the Reserve Bank of Australia, aired his concern over the high rate of borrowing when purchasing Sydney real estate saying that buyers should be more cautious when taking out home loans, since house prices don’t always go up even when people want them to, watoday.com.au reported on 3 July 2014.
In response to this property news, Rick Otton, a well-respected property coach and best-selling author, reminds homebuyers and property investors that buying real estate using seller finance strategies is more advisable when market conditions are uncertain.
“In his speech, Mr. Stevens not only served a wake-up call for buyers and investors in Sydney, he also hinted that tamer price movement coupled with high construction supply would produce a more balanced growth for the real estate market and the economy as a whole - proving that there are always winners and losers whenever market conditions change. His second conclusion, however, still remains to be proven because we’re all not sure if the calmer price movement would continue for a few more months,” Mr. Otton discussed.
“But no matter what direction the Sydney real estate market takes, homebuyers and property investors alike could rest their minds that if they purchased houses for sale with the help of seller finance strategies, they’ll be able to mitigate the risk of ending up in negative equity,” he said.
Mr. Otton then said in an interview for We Buy Houses Radio that the key in having a recession-proof property is through making a deal with the end in mind.
“The sad reality is that many people go into the market expecting that the conditions would remain the same all the time. When you do this, unfortunately, you expose yourself to harsh market changes like unexpected drops in home values. Seller finance strategies solves this problem by allowing buyers and sellers to enter flexible payment terms. For instance, in a flexible deal, a buyer can assume the existing loan from the seller, rather than take out a new loan. In that way, the buyer is able to minimise upfront costs. The lower initial investment means lower risk for the buyer. This allows the seller to move away quickly from unwanted debt and collect the remaining equity in the form of a passive income stream,” he said.
The We Buy Houses Radio is a weekly broadcast featuring Rick Otton and his creative solutions on how to solve all of your property problems. Visit http://WeBuyHousesRadio.com/ 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 WeBuyHousesRadio.com to listen to Rick’s free podcasts.
Jose Climaco, rickotton.com, http://www.rickotton.com, +61 497081882, [email protected]
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