Moody's, a respected credit rating agency, told in their latest report that the Australian real estate market is caught in a "positive price feedback loop" where high house prices will influence a further increase in property price tags, au.ibtimes.com reported on
In response to this financial report,
"The report generally wants to warn everyone that the market for Australian real estate is overheating, and that a price correction may come in the near future. However, despite the very gloomy observations, Moody's also pointed out the market will not retract, because of low construction activity, strong mortgage buffers, low leverage systems, and well-capitalised banking systems in the country," according to
"If house prices will continue to rise, as Moody's predicted, this will further lock out aspiring homebuyers from their chances of homeownership under the traditional process. But, contrary to what most people think, there are other ways – more efficient ways – to buy a house in a rising market," he continued.
"In the traditional process, a buyer needs to come up with a 10%-20% deposit when they get a new bank loan. The problem is that not everyone has the 10% deposit – especially when house prices are high. So rather than apply for a new bank loan, a buyer may negotiate to assume the existing loan and pay the remaining equity in increments. This will allow the buyer to minimise upfront cost and move in the property quickly. On the other hand, a seller can immediately move away from unwanted debt and set up a passive income stream in the process. This is just one example of a flexible deal. The beauty of Seller Finance is that terms can be tweaked based on the specific situations of buyers and sellers," he discussed.
The "We Buy Houses Radio" is a weekly broadcast featuring
Australian property investment specialist,
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
As well as conducting free seminars, workshops and conferences in the
Go to CreativeRealEstate.com.au to listen to Rick's free podcasts.
Read the full story at http://www.prweb.com/releases/property-market-australia/rick-otton-analysis/prweb11995052.htm
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