There has been recent talk lately about how some investment property seminars are actually being led by scammers. I want to let you know that this is something that iBuyNew feels very strongly against and we never give any property seminars or force you to buy property with us. It is also important to note that there are companies that do provide legitimate seminars and not all seminars are scams.
Some people like to attend an investment seminar from who they believe to be property investment specialists to gain an understanding of the property market and work out what they should be buying. However, if you are interested in attending a property investment seminar here is some advice that you should definitely take on board to ensure you don’t become a victim of property scamming.
How do you hear about property seminars?
Firstly, there are various methods in which you can hear about a property seminar. You might see an advert in the newspaper, receive a flyer through the post or simply hear through word of mouth from friends or family.
Typically, these property seminars may charge an attendance fee, sell over-priced property courses or mentorships and may even try to sell you property and investments at the seminar without allowing you to seek independent advice first.
Sadly, there are many people that do get sucked in easily due to being too trusting or wanting to get rich quickly and are preyed upon. To ensure this is not you it is important to stand your ground, look for warning signs and remember if it sounds too good to be true, then it probably is.
What type of property investment seminar scams are there?
There are many types of seminar scams that occur. Here are the main ones to watch out for:
1) Free initial seminar
You might attend the first investment seminar simply because it is free, but the ones after this tend to charge very high attendance fees and give misleading information. They might also talk you into buying overpriced courses.
2) False or misleading information
You may decide to attend a seminar because the advert promises ‘risk-free investments’ and will make you ‘get rich quick’. It is important to remember that there is no such thing as a ‘get rich quick’ scheme. Property investment is a long term approach and the only people who get rich quickly are the scammers.
3) Promise of high returns and little or no risk
No investment is risk free. All investments carry an element of risk and there is no guarantee that you will receive high returns. It is best to avoid these types of seminars that mention this.
4) Property deals and big discounts
If the property seminar speaks about discounts and property deals then these properties are likely to be over-valued, or are having problems being sold. They might even involve hidden fees and commissions. Be wary of this.
5) Flying interstate
If a property seminar offers you to fly interstate to view properties, be sure to check what is involved with this. You may be guilt-tripped into buying the property right there and then with offers and incentives on over-priced properties. This means you will not get independent advice, so you should definitely not sign on the dotted line.
6) Pressured approach
If the speakers or anyone else at the seminar tries to pressure you into buying or investing then walk away. You should never commit to buying a property at a seminar, especially where they try to build up the excitement. It is essential that you seek independent advice first, and if they don’t let you do this then you know you are being scammed.
7) Spam emails
If you receive emails that you don’t recognise or that look suspicious then delete them straight away.
8) Offshore schemes
The seminars might talk about investing in offshore schemes. This is a bad idea as, as soon as you invest offshore, you are no longer protected by the Australian law and you are very unlikely to get your money back.
In order to avoid falling victim to an investment seminar scammer, here are my top 5 tips you should always remember to avoid making a costly mistake:
Always seek independent advice.
Be cautious – if it sounds too good to be true then it probably is. Avoid high risk strategies and false promises and guarantees.
Do your homework – check with ASIC and the ACCC to see if any action has been taken against the promoters or their schemes.
Do not commit to an investment at a seminar.
Use your common sense and follow your instincts. If you have a bad feeling about something don’t go through with it.
At iBuyNew we always insist that you seek independent advice and we take the time to look for properties that will provide you with good returns and are built by trusted developers.
To find out more about our latest projects or to speak to one of our Property Consultants in more detail why not call us today on 1300 123 463.