Home News Seven ways to spot a dodgy property promoter

Seven ways to spot a dodgy property promoter

Font size :
Nila Sweeney

Get-rich quick schemes are usually only good for one person – the property “guru” promoting them. Here’s a quick guide to spotting a swindler.

Anyone with a sign and hotel suite can hold a property investment seminar. Fortunately dodgy property investment hucksters usually share several character traits which make them easy to spot once you know what to look for. Here are some classic signs:

  1. They are a one-step shop: Beware of property deals that involve a mortgage broker and conveyancer all supplied by the salesperson. This set-up is usually designed to speed up the sales process giving you less time to review the deal or consult with other professionals. Prospective investors should always seek independent property assessment and financial advice.
  2. They’ve sent you an “exclusive” invite to a “free event”: This is a good indication that you are about to be misled. Other verbal or written cues include phrases like: “premier wealth event”, “secret”, “only for a limited time”, “exclusive” or “once in a lifetime”. And while the initial seminar might be free, you could be pressured to buy expensive books or reports or to attend further seminars or educational courses at a high cost.
  3. They drive an expensive sports car: According to the Barefoot Investor, Scott Pape, many promoters will try and convince you of how effective their strategy is by making a real display of their own personal wealth. These “self-made millionaires” also usually boast bogus credentials. Don’t get sucked in – the car is probably leased.
  4. They offer above average returns at little or no risk: No investment is risk-free. Property typically offers a 6% return annually, but beware of anyone promising you’ll receive more than that. Other property claims might include “rent guarantees” or “discounts” for buying off the plan, but can involve hidden fees and commissions. These properties can also be over-valued.
  5. They are located far, far away: Be wary if the person selling the property is located a long way from the location of the house and land. According to property consumer advocate Neil Jenmanthis is a classic trademark of scam artists peddling house and land packages to investors at greatly inflated prices.
  6. They are marketing an unregistered property scheme: Be wary of any investment scheme no registered with ASIC.
  7. They offer to lend huge sums of money to buy property: The devil is always in the detail.
There are some genuinely valuable property investment seminars out there. A good seminar will be run by a reputable property adviser. The best way to determine if the promoter is someone you can trust is to check out their credentials.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike

Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Jul 25, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
  • How much do you want to borrow?
  • How much deposit do you have?
  • How much is your house worth?
  • How much do you still owe on your mortgage?
  • What type of mortgage do you have?

  • How much is your new home?
  • How much do you want to borrow?
  • How soon do you want a mortgage?
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords