How do you spot a dodgy property deal?
We're all aware of the in-your-face scams on the internet, like "You're our one millionth visitor, you've won $1 million!" Or the classic email informing you that you in fact have a 42nd cousin overseas that has recently passed with no heir, leaving you a fortune to collect.
However, are you clued up to the more subtle methods of money pilfering? There are hordes of self-proclaimed experts in the property investment industry who have no other interest than pulling the wool over your eyes and gaining access to your funds.
Are you clued up to the more subtle methods of money pilfering?
As if we need any more enticement to look into investment property in New Zealand, as it certainly seems to be the solution to the question of how to build wealth. The recent report from the Real Estate Institute of New Zealand found that the number of homes sold in September was more than 38 per cent higher than the same time 12 months earlier, while Auckland's median price rose $156,000, a 25.4 increase.
Before you jump into property investment, to help you spot a dodgy deal, here are a few warnings signs you can take note of when speaking with a financial adviser.
1. They're trying to rush you
You've heard it enough from the plethora of ads on television: "Buy now, last chance sale! If you don't act you will miss out!" It's the oldest trick in the book, and one that is unfortunately employed in real estate.
The Commission for Financial Capability recommends taking a step back and analysing the arrangement properly before making any financial commitments, as acting fast can result in a purchase you will regret.
Despite what your TV says, the 'deal of the century' can in fact come every week, so don't feel like you're missing out on anything!
2. They've assured guaranteed growth
Giving property investment advice is similar to a weather forecast – we can make educated assumptions, but we can never guarantee anything regarding growth.
Therefore, if someone does promise the world, that's a good indication that you should be extra careful! After all, if it's guaranteed, then why isn't everyone doing it?
The market moves in mysterious ways, therefore you should pore over the various figures and statistics to get a clear idea of where it's going.
3. They're reluctant to show their credentials
If the 'adviser' is void of any credentials, such as qualifications, a relevant licence or testimonials from previous clients, don't hesitate, just walk out the door.
If you would like to speak with experienced and trustworthy financial advisers with your best interests at heart, you should get in touch with the team at Goodlife.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
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