Ask Paul: I fell for an investment scam once and can't afford to get it wrong again
We met back in 2000 when I was taken for a ride by a Queensland investment company.
It's taken a while to regain courage, but it's time to try again.
How can I decide between what's good and bad, safe or dodgy when deciding how to proceed with property investment?
I've met with two different property investment companies. Both promise the world and sound great, but I have no idea how to tell if they are all they say they are.
And I can't afford to get it wrong. - Tammy
Oh, come on Tammy, let's not do this again!
I remember meeting and filming with you and I very clearly remember hearing radio ads offering "free flights to Queensland" in the 1990s to buy an investment property for "under $20 a week".
As we showed on the Money TV show, you did get to own a property, but back then, as we demonstrated very clearly, people were paying close to double the value of the property due to high-pressure sales tactics.
I am more than happy for you to buy a property, but do you have to go with a scheme promoter "promising you the world"?
Why not just do your own research in a market that you know and buy something that is already built on the normal resale market?
Properties are always coming up for sale due to people upgrading, divorcing, dying and changing locations.
In my view, buying existing property is a far more logical process. You can inspect it, get a building report, check it out against similar properties and buy with more confidence.
Quite often older properties are better located, on more land and can be of much better build quality.
So, my view, Tammy, is to do your research on existing properties, not on companies that may well promise you the world but deliver you an atlas!
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