Agents and shoe shine boys offering advice!

I was listening to the radio today on a talk back show and a prominant Adelaide real estate agent was offering his opinions on rent to buy programs (lease options).

First he was shocked that this was happening (how dare someone take business away from them!!!) and wasn't sure if it was legal!

Investors have always known that it is! HELLO!!!!!!

He then said that it is a great idea that helps first home buyers get into the market but offcourse there is a downside in that if the purchase dosent go ahead, the buyers loose their deposit.

Well, this is very unlike normal purchase contracts where offcourse all your deposit is refunded if you pull out before settlement! NOT!!!

In Adelaide there are some appartments that were being sold off the plan for $900,000, they are now built and valued at $730,000. Buyers are forefeting their $90,000 deposit because they cant meet the loan to value ratio to go ahead with the purchase. They are getting sued by the developers who are trying to force them into the sale. This entire scheme was set up by AGENTS!

If instead of going through agents, they were granted an option to purchase the appartments, they may have lost $10,000 instead of $90,000 and the developers would have no grounds to sue them on!

All this was overlooked on the radio station,

Despite acknowledging on air that he had done one day of research into it and didn't know much about it, the agent then asked anyone that want's to enter into a rent to buy program to contact him first and he will give them some ADVICE.

It makes me mad that not only are agents giving out investment advice by referring people to their current negatively geared listings, but now they are giving out LEGAL advice!

Just wondering if anyone else heared the conversation (5AA at around 3pm, April 26) and what your thoughts are!!!
 
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