If you bought a pet rock in the 1970s (or when they were released again in 2012, chances are, you were in on the joke. Rocks, of course, aren’t pets. But when someone offers you all the secrets to property investing, as long as you pay for an expensive course, how can you spot whether they’re a phoney? Investment property scams are, sadly, commonplace.
Inspired by a recent news story about a young single mother who charged $15,000 to a credit card in order to afford a real estate investment course, this episode of Real Estate Matters is all about what you should look out for.
Toni explains that there’s a grain of truth in all of these property courses, and that’s why they succeed. But there’s no magic formula, and what you learn can probably be learned from free elsewhere. Often the course designer is only interested in your money, and locking you into their circle of providers, with the promise of having everything “done for you”.
There are some concrete steps you can take, however, to avoid being pulled into a scam. Toni explains why you should always have your own independent mortgage broker, conveyancer, etc. and how the “easy” method is often the most expensive. She also discusses how to ensure that any property deals you come across are legitimate and good value. Finally, she points out some alarm bells to any deal that should have you running, not walking, away.
- The story of Pet Rocks
- The true cost of some “investment property” courses
- Why investment property courses are believable
- Why investment property courses are profitable (hint: it has little to do with property)
- The advantage of having an independent team of brokers, conveyancers, etc.
- How even intelligent people can get taken in by scams
- What to do to ensure an investment property is REALLY good value
- Alarm bells to watch out for in any investment property deal
Websites on which to check selling and rental prices by area: