Brighter Buying

#6 signs you’re at risk of a property scam

by Karleen Jentz, Copywriter 25 May 2016

With growth moderating across Australia’s once booming southern capitals and regional mining centres, impatient investors are increasingly at risk of falling prey to property scams.

We’ve all heard that property is best treated as a long term investment, so if a get-rich-quick deal sounds too good to be true, it probably is.

The risk occurs when investors – trying to get ahead in a hurry – find themselves wanting to believe in the glossy brochure marketing hype of a shiny new development. But if the promised growth never eventuates, they end up in financial dire straits.

So how do you avoid being taken for a ride?

Your Investment Property magazine offered these six tips to avoid being taken for a sucker.

  • Avoid a developer’s one-stop shop service and seek independent advice from your own solicitor, valuer and mortgage broker.
  • Do not believe claims of guaranteed incomes or risk-free investing. Every investment involves risk and it’s your job to understand those risks before you sign on the dotted line.
  • Don’t get suckered into seminars that sell properties. More than likely you’ll be bombarded with psychological tactics designed to help developers offload stock to investors.
  • Be wary of inducements – like free stamp duty and rental guarantees – for off-the-plan stock.
  • Avoid house and land packages in new estates with high supply and low rental demand.
  • Do not venture into overseas markets. You are essentially buying blind and without a safety net.

Want some advice on your next property move? Contact us for a chat, talk to us about selling or view our current listings for sale.