Property Investment Scams
Unfortunately, the reality is that there are some dishonest companies and people who will take advantage of those ready to invest in property or other assets - and alarmingly, research from the Australian Competition and Consumer Commission shows this trend is growing.
It can be surprisingly easy for scammers to connect with potential victims. Investment scams can contact targets via phone, email, SMS or social media. They can also be an opportunity presented to you by someone you know or by someone introduced to you by someone you trust.
Investment scans can come in different shapes and sizes: it might be an investment offer that does not exist, an offer that does exist, or a lie where someone says they represent a reputable company when they do not. However, in all investment scams, the money you're ‘investing’ goes to the scammer - not towards an investment.
To interest you, scammers might promise quick returns and tax-free benefits, an opportunity with little risk and insider information. Or they could invite you to a property investment seminar, which may use high-pressure sales tactics to rush you into making big property investment decisions.
ASIC lists several ways you can identify potential scams. Here are some warning signs to look out for:
- They claim to be a professional broker or portfolio manager but do not have a Australian Financial Services (AFS) licence or say they do not need one.
- They call you repeatedly for lengthy conversations or email you a lot.
- Pressure you to make a quick decisions
- Claim to be associated with a reputable organisation or name
- Show you slick marketing brochures and documents but they are not registered with ASIC.
If you are suspicious that an offer is possibly a scam take the time to gain independent legal and financial advice, do your own research and ask questions. It’s important not to only rely on the information the salesperson gives you and to resist the pressure to make quick decisions.
If you are interested in investing in property, reach out to your local Aussie Broker who can work with you side by side to help you find the right solution for your investment needs.
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- Chapter One : Things to consider before investing in property
- Chapter Two : Determining where to invest
- Chapter Three : Investment Properties by Dwelling Types
- Chapter Four : Finance for Your Investment Property Purchase
- Chapter Five : How to Invest in Property
- Chapter Six : Adding Value to Your Investment Property
- Chapter Seven : Positive and Negative Gearing
- Chapter Eight : Getting Your loan
- Chapter Nine : Selling your Investment Property