Watch Out for Fake Property Advisors: Know the Risks

Not all property advisors are trustworthy. Experienced investors might see the warning signs, but many people still get tricked by fake advisors, also known as property spruikers. These days, spruikers often use online webinars instead of pushy sales tactics at seminars. These webinars look live but usually have rehearsed answers in a controlled setting.

I once watched one of these webinars for fun and noticed they used old information, like super contributions that were two years out of date. The goal was clear: control the questions, rehearse the answers, and trick the viewers. Property spruikers offer the same investment solution to everyone, something good advisors never do.

Spruikers usually promote brand new off-the-plan apartments and house-and-land packages. They do this because it lets them hide the commissions they get from developers in the overall price. This way, they can make money without showing the true cost of the investment.

A key warning sign to watch out for is simple: if you're not paying for the service, you likely are the product. Property spruikers often give free advice, but they actually earn money from commissions and kickbacks tied to the properties they sell. This means their advice isn't objective and puts their profits over your financial well-being.

Real advisors work differently. They give advice based on your personal situation because they know that one size doesn’t fit all in property investment. Their focus is on giving you complete guidance that matches your goals and financial status, not on pushing a specific product or a pre-packaged solution.

To spot a property spruiker, you need to be careful. Look beyond the flashy presentations and persuasive talks. Check the advice they give, ask tough questions, and demand up-to-date, clear information. Legitimate advisors are open about their fees, where they make their money, and any potential conflicts of interest.

In a world where financial decisions are important, you need to be alert. Learn as much as you can, get advice from trustworthy sources, and remember that free advice in property investment often has hidden costs. Don’t be fooled by easy solutions; invest in proper research and real expertise for your financial security.