Mark gets an invitation to a seminar to learn
how to make a fortune investing in property. The brochure says: It’s safe, low risk,
guaranteed rent, big returns He pictures himself sitting by the pool, sipping
a cool drink, thinking about all the money that will be rolling in if he signs up for
an investment property. So he goes to the investment seminar and is
excited by what he hears. He thinks it will be a great opportunity.
But the reality is quite different. At the seminar he is persuaded to spend money
for more investment courses, books and DVDs and even signs up on the day to buy a property.
He has trouble getting tenants and the rent that comes in, isn’t enough to cover his
mortgage repayments and other expenses. His property doesn’t increase in value anywhere
near as much as the investment ‘guru’ said it would. He really struggles to make
ends meet. Meanwhile, the investment ‘guru’ is living
it up with the money he made from other impulsive investors. Mark regrets investing in such a bad deal. What went wrong?
That investment ‘guru’ was actually pretty dodgy. He made claims about capital growth rates that were not from reliable or independent
sources. He side-stepped questions from the audience.
He really played down the risks and costs. The properties for sale couldn’t be seen
by investors, or were off-the-plan properties that hadn’t even been built yet.
He used high pressure tactics to sign Mark up. He even offered a loan so Mark could sign up for more investment courses. Don’t get caught up in the hype and never sign up on the day. Get independent financial and legal advice from licensed professionals before investing in property. Make sure you really know what you are committing to, and if it will be right for you.