Property investment scams are everywhere. Even though this issue has been highlighted by the media and even ASIC & the ACCC, it is not always easy for ordinary investors to distinguish between what is a good deal and what is a true deal.
Knowing how to avoid making costly mistakes in property investing is just as important as learning strategies for creating and accumulating wealth. The unfortunate truth is that there are so many product and commission-based companies out there looking to flog as many properties as possible onto unsuspecting Australian investors, often taking shortcuts without the slightest duty of care.
The best way to stop their schemes is to not fall for them in the first place and know what to look out for. Far too many people seem to think that property investing is way too difficult for them to do by themselves. And so they flock to property investing seminars in an attempt to educate themselves a bit more about their options.
It is wise to remind yourself that if something sounds too good to be true, it probably is. If there were really massive discounts to be had on dream properties, why are you only hearing about it from a pamphlet in your letterbox? Or on a cold call from a telemarketer? The only way to experience major success in any type of investment is to do the hard yards. When you’re buying property through traditional channels, you consult with lots of different people and get their professional advice. You might see a real estate agent, your mentor, your lawyer, a lender, and your accountant, so don’t let any one person or company pressure you into making decisions about money or investments.
I suggest that if you do attend property investment seminars, do it to build your knowledge, they can be great for that, but don’t commit to anything before doing your research and seeking independent advice first.