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Rick Otton Reveals New Lending Guidelines to Impact Australian Property Investors

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					Rick Otton Reveals New Lending Guidelines to Impact Australian Property
Investors
The next time older Australians apply for a home loan, they may be in for a very big surprise.
In assessing their ability to repay their loan, lenders no longer include the the sale of a primary
residence in their calculations, relying instead on future income and superannuation. As a
result, alternative non-mortgage property investing options are flourishing.
Sydney, Australia (Vocus/PRWEB)February 17, 2011 -- Australia’s recently released new National Consumer
Credit Laws include ‘responsible lending guidelines’ which could adversely affect ‘older’ borrowers whom
they describe as -- wait for it -- over 35 years of age.

CEO of We Buy Houses, Rick Otton, believes that home loan seekers and refinancers who are in their 40s and
50s will be in very real danger of banks rejecting their loan applications. He explains:

“Unless they can demonstrate that their mortgage can be fully repaid from investments and assets, that do not
include the sale of their primary place of residence, they are unlikely to be approved.”

The reasoning behind the ‘responsible lending guideline’, he said, is that borrowers who need to sell their home
in order to repay a mortgage could result in them falling into poverty.

Property Investors

These laws, too, impact on those Australians in the over 35 age group who are involved in property investing.
They often use the equity in their own homes to purchase investment properties, a practice that the lenders will
no longer embrace if the primary residence is left vulnerable.

Otton is amazed that the new National Consumer Credit Laws have not been given more publicity.

“The new Laws impact so many people, regardless of whether they are hoping to purchase or refinance their
home, or invest in property.” he said.

“Anyone over 35 who is seeking a 30 year mortgage, but who has no other investments and little
superannuation, will have their applications questioned.”

Alternative Ways To Finance Property Investing

Rather than being at the mercy of lending institutions, Rick Otton believes that more and more Australians will
become creative in the ways that they approach property investing.

“With banks now wanting older borrowers to have other investments and superannuation to cover their loans,
astute property investors who are unable or unwilling to meet this criteria, are seeking out and embracing
alternatives to traditional lenders.” he said.

He believes that it is vital for home owners and investors to consider their options very carefully before selling
any existing property, especially if their intention is to repurchase or reinvest.


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More information from Rick Otton on home loan and property investing alternatives can be found at
RickOtton.com

About Rick Otton

Rick Otton is an original pioneer of creative property strategies. He is founder and CEO of We Buy Houses, a
leading property enterprise which operates in the property markets of the United Kingdom, New Zealand, USA
and Australia.

In 1991 he uncovered an innovative strategy of buying and selling real estate and went on to amass a portfolio
of 76 properties in his first twelve months of active investing.

Since 2001, Rick has taught over 30,000 students to buy, sell and trade residential property without banks, debt
or risk. By employing these same strategies many of Rick’s students have made over a million dollars a year in
cash and equity, using little or none of their own money, year after year.

He has appeared in the 2004 ABC documentary ‘Reality Bites’ and on Today Tonight, Insight and A Current
Affair. In October 2007 Rick gave a way a house on national TV during 2 episodes of Channel 9’s Hot
Property.

Rick Otton has also been featured in Australian Property Investor, Lifestyle Trader Magazines and in the books:
The Secrets of Property Millionaires Exposed!, Ideas: Original Perspectives On Life and Business From
Leading Thinkers, Think and Grow Rich in Property, Insider Property Secrets, and Walking With The Wise.

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Contact Information
Rick Otton
We Buy Houses
http://www.rickotton.com
1300 888 450


Online Web 2.0 Version
You can read the online version of this press release here.




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