Real-estate scams – Property investment scams

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

Join our mailing list Receive Free Property Tips and news

Now Partnered With


Contact Us

1300 11 RENT (7368)