t’s alarming to hear these kinds of statistics, because a 1 per cent hike is a big deal for many people who don’t have a large pool of cash that they can use to pay off the additional fees.
(PRWEB) September 15, 2014
A new survey conducted by Equifax confirmed that over half of UK homeowners believe that they would face financial struggles once interest rates increase, Moneyfacts.co.uk reported on 4 September 2014.
In light of this property news, Rick Otton, a highly respected property coach, discusses how property investors can better cope with interest rate changes with the help of seller financing.
“The Bank of England already voted a few weeks ago that they will maintain the base rate at 0.5 per cent. But still, some lenders have already adjusted their monthly interest rates in anticipation for official rate hikes in the near future. Further to this, Equifax added to the report that around of 40 per cent of the people surveyed are unaware of the potential effects of just a 1 per cent hike with base interest rates,” Mr. Otton shared.
“It’s alarming to hear these kinds of statistics, because a 1 per cent hike is a big deal for many people who don’t have a large pool of cash that they can use to pay off the additional fees. It also makes it more difficult for people to make profit from their investment properties,” he added.
Mr. Otton then shared in a recent interview for RickOtton.co.uk that seller finance strategies provide investors, the chance to build their property portfolio without facing the full weight of its financial burdens.
“When interest rates increase, banks usually tighten their restrictions. But what if an investor doesn’t have to take out a new bank loan? What if the investor can negotiate to assume an existing loan and pay the remainig equity in increments? In that way, the investor is able to minimise upfront costs- like a deposit fee, when buying a house. From the point of view of the seller, using this method allows a person to move away from unwanted debt quickly and create passive income at the same time. If you’re an investor and you discover that you can control your property in this manner, how many will you be able to invest in?” Mr. Otton 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.
About Rick Otton
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.