Keeping your guard up against “property spruikers”

Be wary of those who are selling properties they developed, or where they get kickbacks. #propchat

Property spruikers are probably most dangerous, or where the most people get sucked in, where slick seminars are being run to sell properties that are also being developed by the company running the seminars.

If you’re considering buying a property via a seminar, find out who the developer of the property is. If it is a related party to the group running the seminar, then you need to ask further questions, or simply avoid.

For investment purposes, I’m not a fan of multi-storey developments. Property needs to have land associated with it, in my opinion (though other experts will have their own opinion). But be particularly wary of seminars dressed up as “property advice” where you are really directed towards a limited number of properties to purchase. There are near unlimited opportunities in property, so if the advice is that good, why would it lead to only properties being developed by the guy (or girl) on stage?

But spruikers can also simply be marketing or sales machines, where large kickbacks are given to the sales crew for selling particular properties.

People need to be paid for selling property – it’s a job like any other. But when you’re buying property as an investment, the worst thing you can do is to overpay for the property initially. “You make your money when you buy, because that’s what you’ve got control over.” Sadly, the reputation developed by “property spruikers” over the years has been built for selling properties that don’t – and probably never would – appreciate in value.

I think you’re best getting property advice from one person/company, followed by a purchase of a property that is completely separate.