• Consumer Protection warn about 'property spruikers'

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    Consumer Protection - Department Of Mines, Industry Regulation and Safety are warning West Aussies about ‘property investment spruikers’ who invite people to ‘wealth creation’ seminars.

    The seminars typically promote a property investment system or market a specific property development and are often promoted through letterbox pamphlets, social media and email.

    According to Consumer Protection, property spruikers are motivated to gain money at your expense.

    “Don’t risk your money and assets because of their misleading advice. Always get independent, professional advice before making any investment,” the website says.

    What to watch out for

    Consumer Protection advise you to be wary of:

    • High pressure sales tactics rushing you into decisions, signing contracts or paying fees (including discounts offered to seminar attendees who sign up on the day).
    • Property deals where the spruiker supplies mortgage broking, settlement or tax advice.
    • The suggestion the spruiker’s scheme or system is ‘Government approved’ by frequent reference to the Australian Taxation Office or Australian Securities & Investments Commission.
    • Spruikers offering personal loans or credit to help you pay the enrolment fees for training courses.
    • Property investment strategies that put your current home at risk by using the equity to borrow significant money to invest.
    • Claims of capital growth rate that may not be independent or credible.
    • Spruikers who side-step questions or downplay the risks and costs involved.
    • The promotion of a particular property development as the spruiker may be receiving a commission or have an undisclosed interest in it.
    • Offers to buy properties interstate which you have not seen, or off-the-plan properties which do not yet exist.

    For more information, visit dmirs.wa.gov.au/consumer-protection/property-investment-seminars.