This is, by far, the most common scam.
These scams (or misinformation, as I
also call it) masquerade as investment planning advice but are nothing more
than marketing bluffs.
I’m sure you have received an
invitation like in the past: Come to our ‘free’ seminar or attend our
free webinar and hear about how they can deliver you financial freedom in six
easy steps.
They’re often highly sophisticated
sales operations with everything conveniently available to tempt inexperienced
investors to buy on the spot.
You may even find they have mortgage
brokers ready and waiting in-house to assess your financial situation and
approve your loan, pressuring you to make a decision instantly on the spot.
These scams promise financial freedom
through property investment, usually with the added promise of extremely high
yield, zero deposit and guaranteed returns.
But these scammers are no more than
property salespeople (usually unlicensed also) who are simply selling
properties that developers can’t offload - usually substandard properties
in over-supplied locations.
Tips: These scams are usually more elaborate, but
remember, if something is too good to be true, it usually is.
Give these schemes a wide berth – often, these
seminars or webinars on residential property are fronts for developers wishing
to offload stock to investors.
Sure, they may promise huge rental returns and
great properties, but you have to ask yourself the question: if the properties
are so great, why are they not brought to market where more people can fight
over them and potentially up the sale price?
The truth is, that many properties sold this way
are often priced well above their worth.
Make sure you ask for their financial planning
licence if they claim they can build a plan for you. if they cannot show it,
they are just salespeople or scammers selling properties.
Also, do your own due diligence and verify the
information provided to you and separate facts from fiction.
RealRenta has all the
tools that a property manager has but for less than ¼ the cost of a
property manager.
You can now manage your Residential, Commercial or
share/student accommodation property
Join now and the cost
is less than a cup of coffee a week to manage your rental property.
RealRenta also has a
free vision, so why not check it out.
Jason Gwerder
Wednesday, 22 May 2024
