Despite the numbers, there’s no denying that there are people still being priced out of the market by the high home values.
(PRWEB) August 20, 2014
The Council of Mortgage Lenders found in their latest survey that 28,600 new mortgages for first home buyers were approved last June, and majority of those benefitted were 29 year old UK residents, Channel4.com reported on 12 August 2014.
In light of this property news, Rick Otton, a highly respected property coach in the UK, says that the number of young people entering the UK real estate market could be improved further if home buyers and property investors learned and applied seller finance strategies in their transactions.
“According to the survey the 28,600, new mortgages approved last June were 19 per cent higher than the volume approved on the same time last year. Although many analysts believe that high house prices may discourage young people from affording new mortgages, the low interest rates being implemented right now are helping them climb the property ladder. At the current rate, young home buyers are only spending 19.3 per cent of their take home pay on monthly mortgage repayments,” he said.
“Despite the numbers, there’s no denying that there are people still being priced out of the market by the high home values. And when interest rates normalise eventually, it may hinder even more people to realise their dream of homeownership. Given the current market conditions, I believe that seller finance is becoming the more practical option for hombuyers and investors looking to expand their property portfolio,” according to Mr. Otton.
“Unlike the traditional bank financing, seller financing doesn’t force buyers to pay a large deposit fee or secure new mortgages to get their hands on a property for sale. As an alternative, the allows buyers and sellers to negotiate for flexible payment terms. For instance, rather than take out a new bank loan, a buyer can negotiate to assume the current mortgage and py the remaining equity in increments. This helps the buyer minimise upfront costs and avoid overcommitting to an expensive bank loan. The seller on the other hand can move away from unwanted debt immediately and create passive income in the process,” he discussed.
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.