WARNINGS TO BE WARY OF GET-RICH-QUICK PROPERTY INVESTMENT SCHEMES
Property commentator Olly Newland said people had come to him who had been to seminars and said they had been subjected to a hard sell.
Property investment should be done carefully and prudently, he said.
“The cheapest properties are still hundreds and hundreds of thousands of dollars and people are borrowing hundreds and hundreds of thousands of dollars. People get carried away,” he said.
“I’ve had clients who’ve hocked their homes for 100 per cent [loans] and their parents’ homes for 100 per cent. They’re bedazzled by the numbers but it’s very dangerous.”
Amateur property investors are getting lured by schemes that promise easy money and are taking out hefty loans.
Complaints to the nation’s financial watchdog have increased as companies offer get-rich-quick schemes to prospective property investors.
The rate of the nation’s property market growth has also led to an increase in the number of companies offering to show newbie investors how to make their fortunes.
Some claim investors will be able to substitute their incomes within a matter of years, retire young on six-figure salaries and own millions of dollars of property, debt-free.
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