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.
Australian Consumer Law outlines some of the warning signs to look out for and includes this great video:
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.
Be wary 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.
I have been running property education seminars for over 16 years, but I have never sold any properties at the back of the room.
In fact I’ve never sold any properties at all.
For 16 years I have been running educational seminars, writing books and blogs as well as mentoring clients personally to help educate them to a level of financial fluency so that they won’t be “sucked in” by dodgy investment schemes.
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Having said that I know some people who despite getting this type of education have still been lured by the promises of get rich quick schemes and unfortunately lost out significantly.
Just to make things clear… my team at Metropole and I have never sold properties, instead we give independent, unbiased strategic property advice and then help our clients implement the wealth creation plan we have devised together through property advocacy.
Similarly, last year when ASIC warned a large number of property seminar promoters and property “educators” we were not on that list.
At this stage of the property cycle, where not all properties will increase in value strongly, correct property selection is critical, so if you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
When you attend our offices in Melbourne, Sydney or Brisbane you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.
You may also want to read: National Campaign Targets 'Dodgy' Property Spruikers