‘Investor Rorts’ - Beware!

Investor Rorts’ seem to be a constant newsworthy item in the media. In recent times there has been considerable media coverage concerning unethical ‘Investor Rorts’ and in many cases illegal ‘marketeering’ practices for the sale of investment properties.

Strong warnings are continually being issued by each state’s Fair Trading Institutes to be wary of falling into the common traps open to the unsuspecting investor. These traps are most often set through techniques such as telemarketing, group investment seminars, promises for achieving a ‘wholesale price’ by purchasing through a large group, free holidays associated with inspections of properties, and the list goes on. Many investors have been lured by the ‘upfront’ sell only to find much later that their investment is not what they thought they were purchasing.   Either it cannot achieve the rental price quoted by the salesperson, or the Body Corporate fees are treble what were originally budgeted.   Worse still, the property value is considerably less than they paid. When purchasing, take the time to check out the local market and see how your property compares with those around it.   Engage the services of an independent valuer to assess your investment, so that you can make objective decisions about its investment potential.

If you wish to discuss the purchase of your next property, please feel welcome to contact our office and discuss your questions or concerns with our team.

WARNING!

Landlord Access to Properties

There was a recent case where a property owner took the initiative (by using their own set of keys) to enter and inspect a property that a tenant and vacated that day without consulting the managing agent.

The owner thought nothing of it as the tenant had vacated the property.   He began cleaning the property and attended to some minor repairs. At the end of the day, the owner contacted the property manager requesting that cleaning and repair costs be taken from the bond.   The property manager was placed in a difficult situation and had to explain to the owner that the final inspection had not been completed with the tenant, and that the bond claims could now be jeopardised.