Think of a number of key industries, insurance, electricity suppliers, real estate agents, banks. Unfortunately, these and many other industries have been tainted by scammers and sharks that want nothing more than your money.
Sadly, Property Investing has been tainted with scammers too. Especially property investors that promote interstate investments.
How they work
Scam property investors hit unsuspecting people, promise the world, and show them glossy brochures with mouth-watering income projections. Sometimes, they’ll even fly potential “investors” interstate to see the property. What they fail to do, is show them the property during peak times or include the surrounding locations in their “tour”. They may also fail to disclose the areas rental returns, vacancy rates, unemployment rates etc.
Why scammers succeed
The worst thing about all of this so called “spruiking” is that it is especially the inexperienced and usually first time investors that often get caught in these “schemes”. The result? They scammed investor will withdraw from the property investing market for ever. The only things they are left with are debt and emotional stress.
You know that something is dodgy when even the Lawyers that were initially referred in the “scheme” are putting out warnings. Today, when I hear the name Henry Kaye [google him, there are many others too], I say it’s usually time to be very careful otherwise you may kiss your investment dollars good bye.
Unfortunately in this “time poor” world, the vast majority of first time property investors do not have the time to complete the required amount of “due diligence” that is commensurate to the amount of money they’re about to spend. We believe, if they did adequate research, the majority of predatory “spruikers” wouldn’t be able to tarnish our industry.
Property Friends is a specialist Property Investment Advocacy that has been operating for the last 13 years on the basis of 3 principles: Trust, Community & Progress.
www.propertyfriends.com.au Tel. 03 – 9758 5331