Why you should steer clear of property spruikers and most investment seminars
We all know the saying “if it sounds too good to be true, it usually is”, and this saying often rings true with the myriad of investment seminars and “get-rich-quick” schemes you’ve no doubt seen.
Consumer regulators across Australia are warning would be investors against ‘dodgy’ property spruikers running get-rich-quick seminars.
Consumer advocates are concerned people are being pressured into dodgy deals selling properties at the back of the seminar room and or those push rent-to-buy housing schemes.
So, what’s a spruiker?
The ACCC explains that property spruikers are motivated to gain money at your expense.
They suggest you don’t risk your money and assets because of their misleading advice and that you should always get independent, professional advice before making any investment.
What to be cautious of:
high pressure sales tactics rushing you into decisions, signing contracts or paying fees (including discounts offered to seminar attendees who sign up on the day)
property deals where the spruiker supplies mortgage broking, conveyancing / settlement or tax advice
the suggestion the spruiker’s scheme or system is ‘government approved’ by frequent reference to the Australian Taxation Office (ATO) or Australian Securities & Investments Commission (ASIC)
spruikers offering personal loans or credit to help you pay the enrolment fees for training courses
property investment strategies that put your current home at risk by using the equity to borrow significant money to invest
claims of capital growth rates that may not be independent or credible
spruikers who side-step questions or downplay the risks and costs involved
the promotion of a particular property development as the spruiker may be receiving a commission or have an undisclosed interest in it
offers to buy properties interstate that you have not seen, or off-the-plan properties that do not yet exist.
For more advice and complete transparency in real estate contact a Naked Agent today.