What Types of Scams Should I Look Out for When Buying a Property?
Rental Guarantees – Rental Guarantees have been available for many years. Don’t be fooled, the guarantee is generally factored into the price or well below the market rent. Rental Guarantees are used to con people into buying properties that can’t be sold for a good price. Ask a local independent real estate agent for a rental appraisal.
Huge Commissions – Developers are paying real estate agents, financial advisors and buyer’s agent’s MASSIVE commissions to attract buyers. Sometimes these absorbent commissions are factored into the price. If it’s a brand new property in an overdeveloped City or a new estate with a rental guarantee, RUN.
If It Sounds Too Good To Be True It Generally Is….
Independent Advice – Be careful who is giving you the advice. Read that again. Is the property being offered to you by an “independent advisor” that you are paying a fee to? Is it a buyer’s agent who is claiming a commission from you and the seller? (It is highly illegal for a buyer’s agent to represent the seller and buyer in the same transaction.
Research – Research the area you are considering buying the property. Speak to local real estate agents who are not selling the project or house and land that you are considering. What growth is happening in the area? Are there major infrastructure plans on the horizon? Probably not
Get Ready To Run
Over Inflated Rental Prices – Are you being told that you will achieve a weekly rental that sounds too good to be true, it is generally true, you won’t. Check the major real estate websites to see which properties are being offered for rent. Speak to the local property manager.
One Stop Shop – The good old one-stop shop! You have the agent, the solicitor and the finance person all under the one roof! Geez, you will hear what a great guy he his too, well he thinks so. RUN… or get your independent advice.
You Must Get Independent Advice
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