Call us on 1300 794 893

Your Money

Property traps

I went to a property seminar where the organisers put on a pretty interesting show and made promises that they could find ideal properties and arrange the finance. They also talked about guaranteed returns of seven per cent. What do you think of these outfits? 

When someone makes you an offer you can’t refuse and it sounds too good to be true, then it probably is too good to be true.

A few years back a guy called Henry Kaye got into a spot of bother with ASIC because he was making big promises and failing to deliver.

These property businesses often provide great information and can be largely on the money with many of their claims, however, you can’t trust everything they say and promise to do.

For example, they can promise tenants or that they will get you the best home loan interest rates, etc. but their promises might only be as good as how long their business can withstand a market crash. They are often getting commissions for putting people into home loans and this can create a conflict of interest.

Also, when people give you a guaranteed return on rent, this has to be tested out and ensured there are no loopholes, false valuations and other grey areas that ultimately will undermine how good the investment really is.

Ideally, the seminars promise convenience by doing everything for you but I always want the property to be in a low vacancy rate area where tenants are happy to pay good rents and where there’s always a good supply of these tenants.

Test out every promise and claim they make and see if you can do better armed with their knowledge. When it comes to investments, always do a lot more homework than the average person and you will end up with an above-average result. 

Looking for transparent and affordable financial advice? Book a complimentary first appointment with Switzer Financial Service today. 

Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Friday, November 20, 2009

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300