In a nutshell, a property spruiker is someone who uses excessive emotional manipulation when it comes to advertising something concerning property investment.
Most of the time, property spruikers would relate personal stories such as how someone had made a great deal of money through property investment.
Different types of emotional manipulation techniques are applied during their seminars, workshops or face to face strategic consultation meetings to achieve their main goal which is to gain money at your expense.
They would tell you they are all about creating wealth, but they are just experts in creating debt for 99.99% of the purchasers.
“Investors … must be wary of trusting promotional material provided by spruikers,” – Australian Consumer Law
Their modus operandi usually involves sales contracts or property sales reservations that come with limited-time offers. You will be urged to register at the end of the seminar or a face to face meeting with the promise of getting all sorts of incredible offers such as 50% off the legal fees, $10,000 off stamp duties, or rental assurances.
Under such circumstances, people would often feel pressured to take immediate action.
Also, while most of the people who come to their seminars have the intention to learn about the real estate market, professional advice, current trends and financial information, property spruikers typically convey information that lean towards sales pitches.
“Some spruikers claim their two days education programs or mentoring programs are worth ten of thousands of dollars,” – Australian Consumer Law
If you encounter any companies giving such claims, ask yourself these two questions – why is the company offering you to attend a seminar that is worth thousands of dollars for free and how does the company earn their money?
While they may not admit it, some property spruikers earn money from selling educational courses, while others get commissions from developers or vendors.
“Many seminar attendees never come close to profiting in the way spruikers make them believe they will, even in the long term,” – Australian Consumer Law
Many of the seminars or the face to face strategic consultation meetings attendees end up purchasing investment properties with the hopes that their investments will help them in their retirement.
They are convinced by the wealthy individual to buy several properties over a short period of time, without knowing the person primarily works for the developers or vendors to sell specific properties in volumes.
When they eventually found out the truth and realised that the investments would never work to their benefit, some of them are forced to take equity from their own home and even their rainy day savings to cover their massive losses.
My advice to anyone is at the end of they day, property spruikers are sales people and whatever that they have to offer is mainly driven by their mission to close as many deals as possible. As an investor, you should not engage with such people, or ensure you well-equip yourself with informed research and advice from professionals.
Investinproperites Pty Ltd act as a buyer advocate and we charge our client with a fee. Unlike other companies, the process would only begin after we have validated our findings with proper risk management and independent source. This is to ensure we only act for the best interests of our clients.
If you would like to know more about risk management and an independent source that could help you to find good assets across Australia, you are welcome to contact us or schedule a call. Details can be found on www.investinproperties.com.au