Invest wisely, avoid pressure sales
If you invest wisely in property it should give you a sense of satisfaction and peace of mind.
However, too many consumers have fallen for a slick sales pitch and lived to regret their investment decision. The great personal financial cost can also damage relationships and affect emotional wellbeing.
Doing your research is crucial before you decide to invest in property, but you need to look for information in the right places.
“Free” investment seminars or workshops hosted by property spruikers are often promoted through pamphlets put in letterboxes or handed out on the street, via Facebook and email or at expos like home and garden shows.
Really they’re just opportunities for salespeople to sell product but often the sellers create the impression they’re financial experts and naive investors risk paying a high price for their services.
You need to remember the old saying that, “if it sounds too good to be true then it probably is”. Property spruikers are in it for themselves.
The seminars often involve hyped up presentations by people who overstate the value of their investment schemes. Some seminars involve catchy chants, expensive wine being given to a “lucky” attendee and all sorts of other gimmicks to give people a false sense of empowerment before they’re urged to sign up for a property or investment course on the day.
Be on high alert if a seminar promoter:
Encourages you to buy an investment property that you can’t see or hasn’t even been built yet.
Really plays down the risks and costs, and side-steps questions from the audience.
Wants you to hand over money for more courses, books and DVDs to learn how to be a savvy investor.
Offers you a loan so you can sign up for more investment courses.
Has a sense of urgency that an opportunity will be lost.
Makes you feel pressured into signing up on the day.
You also need to consider whether you could manage any loans during unfavourable circumstances, whether it’s a common rental vacancy, interest rate rise or another unforeseen setback.
Don’t get caught up in the hype. If you are feeling under pressure to make an investment decision it is best to walk away and take some time to consider the deal.
Before committing to an investment deal, always get independent, property, financial and legal advice.
For more information visit www.commerce.wa.gov.au/ cp/spruikers or contact Consumer Protection by emailing email@example.com or phoning 1300 30 40 54.