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Dodgy property investment seminars elicit warning from state government

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Australian Broker | 21 May 2013, 08:00 AM Agree 0
Questionable 'free' property investment seminars have stirred one state's government to issue an official warning - but a local broking group says they've been going on for more than 30 years
  • Melbourne MM | 21 May 2013, 09:45 AM Agree 0
    About time some of these wealth creation groups were called to account. Should be a Commonwealth initiative, not state based.
  • NQ Broker | 21 May 2013, 10:51 AM Agree 0
    I cannot believe that they are just picking up on this now. These type of seminars are common place right around Australia I would think. They are a blight on the industry no doubt. But what can you do??? The statement "Buyer Beware" is most certainly at the front when I hear of these seminars..
  • Melbourne Broker | 21 May 2013, 11:04 AM Agree 0
    These seminars have been around for a long time. Anyone who goes along thinking they are not going to be "sold to" is being naïve. Do your own research on the subject, check people out and get other opinions e.g. your own accountant, financial planner etc before making a decision.
  • QEDRisk | 21 May 2013, 11:10 AM Agree 0
    ASIC - are you reading this yet?? It's high time this industry was put on a level playing field with mortgage brokers who were the low-hanging fruit of your legislation!
  • Dr Phods | 21 May 2013, 11:32 AM Agree 0
    FOFA, that's all I've heard about for 2 years now. These spruikers can do a lot more damage than any carefully thought out financial plan, but they get away scott free. Come on ASIC, do your job!
  • Brisbane Broker | 21 May 2013, 12:20 PM Agree 0
    it all come down to person who give advice. I was involved with one of those groups from Qld but i never advice against 'what is best for the client'. I was puled aside and asked why I'm not advising people to buy investment, and they told me 'it is in best interest for the client'. I've asked them ' is is best for the client or builder', they told me 'well builder is paying for it'. I have told them that I'm not risking my licenses for anyone specially not for builder. Of course they stop using me.

    As i sad, it come down to person who is advising. Only person with financial licenses should advise, should anyone buy or not.
  • Montana Invest | 21 May 2013, 12:43 PM Agree 0
    For years I have been conducting free information workshops. Our clients take about 4 to 6 weeks before they are in a position to make any decision on any property investment.
    Most so called investment Seminars are only targeting investment stock in areas that the developers pay huge commissions and the Finance Brokers probably know about such commissions.
    It's the Property Expo's over weekends that seem to be attracting the problems coupled with so called Mortgage Brokers who chase the highest commissions or trailers for themselves and not concerned at all about the clients needs.
    Any investment should be run passed the clients Accountant and possibly a Financial Adviser before any such decision is made.
    Once our clients have been through our process we then and only then source the correct property in the locations through out Australia that suits the clients needs.
  • Keith | 21 May 2013, 02:32 PM Agree 0
    Another form of misleading the public into questionable investment strategies, happening for years but somehow escapes the nose of ASIC
  • Papery | 21 May 2013, 02:34 PM Agree 0
    The pressure brought to bare is immense with these so called marketing groups & they still beleive they have the right to influence lenders & valuers. Lets face it the property investor marketers can mask disclosure of the full comms & builder/developer kick backs. Bring on regulation & ASIC!
  • C.G. - Melbourne | 21 May 2013, 03:08 PM Agree 0
    I attended a few of these seminars conducted by diferent organisers and they all aim at naive members of the public. Along with misleading information and figures, they are selling their expensive services in a high pressure environment. Too many people are falling for that (like "buy property for 1 dollar" etc.) I agree with all the above comments - this has grown to a separate industry and should be regulated and watched as such.
  • Peter William Smith (Perth) | 21 May 2013, 03:11 PM Agree 0
    I have been to many of the 'free' seminars and bought the education packages that go with them. Like the mortgage broking industry, a few bad apples can taint the whole lot of you (unfairly) - and so it is with wealth creation / property investment. The BEST of the programs I have spent big $$ on are the ones that cover development and property option contracts. The worst ones are those that talk about using a SMSF (super fund) to buy negatively geraed 'retail' (ready built) apartments / townhouses. They don't teach you this stuff in school / uni, and the popular media don't cover it either, because it requires intelligence, willpower and discipline to achieve success - and 90% of Aussies are either too distracted (time poor), to fearful (onya media / gov'ts) or too closed-minded to take on a project and successfully execute it ! The only time I would ask an accountant or financial planner or broker or lawyer for their advice is IF they themselves have a property portfolio, otherwise how the hell do they actually know the bigger / whole picture ? The biggest cause of failure with property development / investment by the 'average Aussie' is just that; a self perception of 'ordinaryness' and a victim mindset when the first small hurdle / challenge has to be dealt with or the risky decisions have to be made. The better seminars include plenty of time for risk management and mindset capabilities. The whoole attitude of "we don't understand it or are too lazy / fearful to try it so it must be banned" is just more bureacracy gone mad with 'saviours' attempting to inflict control over others to 'save them from themselves'. No 'ordinary Australian' is ever going to achieve great success in property until they start thinking of themselves as extraordinary ! Cheers. : )
  • Gold coast broker | 21 May 2013, 09:12 PM Agree 0
    Hi Asic

    go look at JDL and you will find what your looking for
    • | 20 Apr 2016, 11:17 AM Agree 0
      YES I agree. Did attend a seminar and met with a Anthony Pickett who can spin so much bull that I think he even believes what is is saying. He is not able to retire cause all his money is tied up in houses and if they all burn down then he has to go back to work for real. What a crack pot and so is the company. I feel stupid for falling for the invite to attend. Mr Pickett you need to take a good look at yourself and stop ripping people off for your own gain.
  • alex | 21 May 2013, 10:02 PM Agree 0
    it's not about coaching program it's about selling investment properties where the company holding the seminars are making between 25 to 35k and more on each sale the free bit is getting you there. the government needs to grow up as do the people that go to them
  • Melbourne MM | 22 May 2013, 07:03 AM Agree 0
    In my experience: there ARE reputable and professional welth creation groups out there but they are in the minority. I've seen first hand: Propery investment spruikers referring to their clients as 'wood ducks'; Wealth creation groups attempting (successfully in a lot of cases) to circumvent and corrupt the lending / valuation process by obtaining valuations in a certain development across a range of valuers, picking the 'most favourbale' val firm then insisting (by pressuring lender/broker) that these valuers are used to support the loan application; Property spruikers using self serving and shaky 'evidence' to support their investment strategies (your poperty will double in price in ten years); Marketers purchasing land from Developer themselves for say $200k then on selling to their clients for say $260k as part of a h&l package, 2 months later (how is this in the best interests of their clients??). As I said, there are reputable groups (such as Blue Wealth) but it is typically - but not exclusively - the smaller operators that fly under the radar whose practices are questionable.
  • Jamie | 10 Dec 2013, 12:17 AM Agree 0
    As a builder I was involved with these people I can tell you first hand they were earning 40k plus commission they make sure there is no paper trail back to them so if anything goes wrong they would walk and the builder and client were left with the problem. People really need to research what they are doing
  • Newbie | 09 Jan 2014, 08:52 PM Agree 0
    Sorry i know this post is months old, but I'm interested to hear what Gold Coast Broker has to say about JDL - are you advocating them or warning against them? I would like to use them or someone that does the same sort of thing as them, but really don't know who to trust. I'm finding it hard to find recommendations from the forums.

    • Proud Pat | 20 Apr 2016, 11:26 AM Agree 0
      Stay far far away. They are probably one of the worst things started in Australia since the penal colonies. Just met a lady who brought a property through them in 2010 and its worth the same yet they made heaps from selling her in the first place. I got suckered into attending a seminar but luckily took my accountant. I think he hasn't stopped laughing since. They are beyond bad.
  • Duncan | 04 Dec 2014, 04:31 PM Agree 0
    JDL Strategies..... STAY AWAY!!!!!!
    Seriously, beware.
    Go look for better Certified advisers. It will cost you less!
  • Gold Coast | 05 Dec 2014, 06:37 AM Agree 0
    What is the company has internal brokers, financial planners, and investment strategists and do a complete Financial Strategy report? Also what is they feel that property happens to be the best Dollar for value, best leverage and safest long term return? Could some of the negative comments be from people who are hypnotised to fail? Or are the negative comments above from people who hold their own Multi million dollar portfolios? Robert Kiyosaki, Donald trump and other created most of their wealth through property. Educating Australia, and the general Australian does need financial education. WHy not use property? WHat happens if some of these people out their actually walk with people for life?
    Just a thought.
  • Andrew Edwards | 05 Dec 2014, 08:58 AM Agree 0
    The whole problem with property investment companies and these seminars is that everything is based on "projections".

    Yes it looks fine IF those figures pan out. IF the property increases in value by 5-10% pa. IF rates stay relatively low.

    There are a lot of IFS.

    They make it sound so easy to have a nice portfolio of 5 properties within 10 years but again it is all just theory and if it doesn't pan out these companies have already made their commission.

    In the fine print they cover themselves by having wording similar to "the information provided is based purely on speculation and we do not guarantee these results".

    I have had clients who have bought properties in QLD 7 years ago that are still worth what they paid for them.

    In theory yes what they are promoting can work. YES there are tax deductions, YES it can be worthwhile and YES it is all based on theory only so buyer beware.
  • Papery | 05 Dec 2014, 10:50 AM Agree 0
    Agree with Andrew..... I've seen my fair share of these clients also.
    Not only is the logic based on projections, but also on averages..... & most punters are way to trusting & rarely do they seek their own independent financial advice...& why would they when they've just bought into a one stop shop incl property coaches/Brokers/fin planners/accountants etc??
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