September 06, 2013
Rick Otton, author of How To Buy A House For A Dollar, explains to Aussies how creative strategies in his real estate book can make better real estate transactions in light of news that many investors are losing money over property investment.
On 27 August 2013, the Property Observer reported that 42 residential units bought off- the-plan in the Oracle development in Gold Coast were resold at a lower value than its original purchase price. The worst case reported was the sale of a unit priced at $2.435 million, but was only sold at $1.675 million or $700,000 less 6 months later.
The report further recounted that only 4 units managed to be resold at a higher value, while 1 was sold with its original price.
“These situations are classic examples of why traditional methods of buying and selling houses should be replaced,†Mr. Otton shared when interviewed about the matter.
According to Mr. Otton, “real estate agents only have one trick up their sleeve in order to sell house and that is to lower the price to attract more buyers. What they don’t realize, however, is that in lowering the asking price of a property for sale they’re also affecting the value of other units in the development.â€
Read more: http://www.digitaljournal.com/pr/1452949#ixzz2e7vfKYCI
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