WARNING!…..The Property Spruikers/"Wealth Creators" are back!
Yes, the Melbourne led residential property recovery since the GFC has brought them from lurking in their dark caves and back to the hotels, convention centers and social clubs for "Property Wealth Creation Seminars" , more recently focussed on Self Managed Superannuation Funds
The simple truth is that "Seminars" that promote easy wealth through property have led to financial ruin for many naive investors, and considerable wealth for the ruthless "Spruikers", using high pressure sales tactics, offering "freeset ups for SMSFs, no obligation home visits" etc and aggressive media marketing in search of more victims.
Many self described "wealth creation experts" or "superannuation experts" have NOT made their own fortunes through wise, legal, tax effective property or superannuation investments, as claimed,despite outward appearances of wealth and "success" [eg "driving Ferraris or genoursly supporting Charities" etc] but, rather through selling "investment/superannuation education" or indeed their own, or related entities, often "C" grade properties, usually "off the plan" to the gullible, at inflated prices.
In many areas regulations are still very lax and do not offer the same degree of protection as applies to direct shares, managed funds and listed superannuation funds .There still exist " many traps for young players" & many opportunities for the dishonest. Expensive legal proceedings are often the only means of redress for those who have been misled or swindled.
Self Managed Super Funds can be very beneficial and offer, if operated correctly with well chosen property investments from independant agents, many long term advantages, but you still need to be very careful!
Here are my nine BASIC RULES to protect you, your super & your familys future security.
- If it sounds too good to be true, it usually is!
- If the family home is at risk….Run!
- If there is pressure on you to sign or join…Run faster!
- If the "Experts" are demanding disproportunate thousands of dollars for the "secrets" of their system or funds…..continue Running![ to a good book store where many respectable property writers will teach you better ways, for a fraction of the sum demanded, or, to a reputable impartial accountant or licensed finiancial advisor]
- If the "Gurus" are promising rental yields of 7-10%, positive gearing and Capital gains of 10% [plus], check that the property they suggest you purchase is in fact located on Earth!
- If you don’t understand, continue to ask questions or don’t invest!
- If you don’t check the price,rental yield and potential Capital Gains promised with an independent reputable Licensed Real Estate Agent, or Buyers Advocate…your nuts!
- If its a "one stop shop" and the spruiker/salesman is also offering to provide the mortgage broker, fund & account management, taxation advice etc and the conveyancer.....RUN! [I wont even bother to comment on the controlled situation and the pressure applied during so called "free seminars" or "personal guided tours" to inspect "great new property investment opportunities!"]
If your asked to borrow substantial sums of money to invest in either "sure fire" property with "multiple streams of income" or "priceless investment education" for "a limited time" by any of these "Seminar Sprukers" against ANY assett,especially the family home, or your income, and its put at risk, PLEASE, take a deep breath and SEEK INDEPENDANT PROFESSIONAL ADVICE!