Yahoo Finance Alarm bells: 6 warning signs you’re being ripped off on your investment property
The worst of the national property downturn seems to be coming to an end, with Melbourne and Sydney prices recording upticks in June, although dark clouds still hang on the horizon.
But in such an environment where interest rates are hitting rock-bottom, lending is loosening up, and first home buyers are getting a boost, we’re likely to see a spike in dodgy sellers willing to pull the wool over buyers’ eyes to make a sale, said Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos.
“While all of these factors are much-needed good news for the property sector generally, they also create the ideal conditions for unscrupulous operators to potentially entrap novice buyers and investors,” he warned.
Property spruikers are cunning when it comes to convincing investors about ‘opportunities’, such as encouraging online purchases.
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And to make matters worse, Koulizos added, there’s currently no legislation that protects consumers from “dodgy operators pretending to be property investment experts”.
But there are tell-tale signs that the self-professed ‘expert’ doesn’t have your best interests at heart.
Here are the six dead giveaways that show an ‘expert’ is actually just a spruiker, not a property professional:
Not being upfront about commissions or kickbacks
Using pressure tactics
Offering discounts for signing contracts immediately
Free seminars that end up flogging hard sells
Not following the same investment strategy themselves
‘Cut and run’ approach, with no after-sales service
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