Young Australians are coming up with more creative ways to save money for a deposit. A majority of first home buyers curb their lavish spending habits such as eating out and attending leisure activities outside the home, while others try out more unorthodox saving methods like house sitting.One news article recounts the experience of Marissa Johnston, 30, who regularly schedules house sitting gigs in order to avoid paying expensive rent for an apartment in Sydney. She hopes to buy her first property within 1 year.
This kind of behavior, most of the time, is an indication that more and more buyers are both looking for and are in need of alternative ways to buy a home.
People have always been conditioned that there is only one way to get houses in Australia, and that process entailed saving up a lot of cash for a deposit fee, and then using that money to apply for a new home loan with the banks. This process demanded a ton of cash from buyers, but since the economy was good and money was still flowing, some banks didn’t require a large deposit in many instances. The party, however, stopped in the aftermath of the global financial crisis, and banks started to tighten the requirements when approving new home loans. As a result, first home buyers were left to save for a long time just to pay the deposit fee.
Although these thrifty practices could really make an impact in the long run, it’s not the most efficient way to buy a real estate.
A more efficient alternative for many young Aussies compared to saving up or applying for a new home loan, is through agreeing to flexible terms as used with seller finance strategies. The secret of this efficient process is through eliminating the payment of expensive deposit fees and allowing both the buyer and seller get what they want out of the deal.
“A better alternative is to have a buyer negotiate for flexible payment terms instead. For instance, rather than take out a new bank loan, the buyer may negotiate to assume the existing financing and pay the remaining equity in increments. The flexibility makes it more convenient for the buyer to make the purchase. At the same time, a seller will be able to move away from unwanted debt much more quickly,” reveals Rick Otton book.
About Rick Otton
Rick Otton is a self-made millionaire and property investor, based in Sydney, Australia.
Since 1991, Rick Otton has built his real estate portfolio using innovative strategies without the need for traditional bank-style loans. He is director of his We Buy Houses business that operates in Australia and the UK.
He regularly records and publishes iTunes podcasts via his channel We Buy Houses Radio.
His innovative low-risk, high-reward approach to real estate investing has been featured in a variety of Australian television programs including Today Tonight, A Current Affair and Hot Property.
Visit www.WeBuyHousesRadio.com and listen to Rick Otton's free, popular property investing podcast, We Buy Houses Radio.
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