Property is a long term investment and proven performer in any economy, but “get rich quick” courses and seminars offered by wealth creation ‘gurus’ are giving a bad name to the entire property investment industry.
The problem is that these courses, which is normally free, are essentially capturing people who aren’t ready to invest and don’t have a clear idea about what they want or what is right for them.
The primary objective of the people running these workshops is simply to fill a room and hopefully get some people to buy a property that they can earn commission. They are not interested in taking the time to get to know you and your individual situation or goals as long as you take their advice and purchase normally over-priced investment properties.
The truth is that there is no quick fix or exclusive magic formula to making money through investment property, Effectively, they are the same strategies that have always been used, and will work in the right situation, but only over the long term. It is so much more important to do you own research by using property investment analysis tools such as the one provided by Investment Property Calculator.
The warning signs
According to the Australian Competition and Consumer Commission there are numerous warning signs that you can help you determine whether you are being duped, and they include:
- Advertisements for seminars or real estate investment schemes that promise a ‘risk-free investment’, ‘be a millionaire in three years’ and ‘get-rich-quick’.
- Promises of above-average returns at little or no risk.
- The first seminar you are invited to attend may be free, but there are very high fees to attend any further seminars
- Offers of loans to cover the costs of both the investment and further investment seminars.
- Investment seminars that offer to teach you ‘secret’ or ‘exclusive’ techniques for building wealth.
How to avoid real estate property scams
The ACCC also recommends that consumers follow these simple steps to help protect you from investment seminar and real estate scams:
- Use your common sense: the offer may be a scam.
- Remember there are no get-rich-quick schemes: the only people who make money are the scammers.
- Do not let anyone pressure you into making decisions about money or investments: always get independent financial advice.
- Remember that family members and friends may try to involve you in a scam without realising that it is a scam: you should seek independent advice (from a lawyer or financial adviser)
- Be wary of investments promising a high return with little or no risk.
- Do not open suspicious or unsolicited emails (spam): delete them.
- NEVER reply to a spam email (even to unsubscribe).
- If it looks too good to be true—it probably is.