Rick Otton Explains Contradictions in the UK Housing Market
(PRWEB) June 24, 2014 -- A recently released report has caused confusion among UK-based property investors this week. The survey by the Royal Institution of Chartered Surveyors (RICS) showed that house price balances increased more than their forecasts, even after upward revisions were taken into account, Reuters reported on 12 June 2014. The increases were only a fraction lower than the highest reading recorded in over a decade, which was posted in March.
At the same time, the RICS document also showed that new housing approvals are the lowest they have been in recent periods. Further signs of weakness in the market are the rapidly falling numbers that are being listed on the property market.
“At first glance, the RICS report does seem to be saying two different things, but the truth is that the data does make sense,” said leading real estate authority Rick Otton. “Reports such as this one are extensively researched and take time to prepare, so they take into account events and data from a period of time, rather than just a 'snapshot' of any given moment,” Mr Otton explained.
“The price rises can be explained by the fact that there is a lag time between buyers listing their homes and when they are sold, settled and recorded in statistics,” said Mr Otton. “As a result, price rises and falls are indicators that are a little behind the real time conditions on the ground,” he went on to say.
“In terms of the falls in new housing starts and lower numbers of properties for sale, these are much more current sets of data. What we’ve had in the UK in the last few months is a lot of media speculation about a property bubble, along with a new set of rules for banks that make the lending criteria they apply to potential borrowers a lot stricter,” Mr Otton said. “The result is an immediate drop in these two fairly sensitive measurements,” he concluded.
“What reports like this show is that the housing market in the UK is in a period of price growth at the moment, but that indicators are mixed and investors can’t expect price appreciation to go on forever” said Mr Otton.
“That’s why I encourage investors to do their research and in particular minimise their exposure to risks like property price corrections and crashes. My strategies that have been tried and tested in both 'hot' and falling property markets prove that it’s possible to make money no matter what the overall market conditions are."
“To see the strategies in action, as well as case studies and other free of charge education tools, I encourage interested property investors to visit my website or to pick up the phone and call the office directly,” said Mr Otton.
Mr Otton’s UK real estate investing techniques can be found at http://www.RickOtton.co.uk.
Rick Otton is a property investment professional who, over the last 20 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 Pty Ltd.
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.
Jose Climaco, rickotton.com, http://www.rickotton.com, +61 497081882, [email protected]
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