Sorry guys but I have to disagree with many of you. We are very lucky to have learnt in life the value of learning and knowledge, whether instilled by our parents or because of our own desires and motivation. Regardless of this some people do not see things the same way. We are all different with different wants, desires, needs and wishes. We should consider all Aussies here including those more gullible and less intuitive or educated.
My family are all battlers. My brother, thank god, listened to my advice about 3-4 yrs ago and bought his first property on the Gold Coast at 32 yrs of age. I drove to the coast and helped him through it, arranged finance for him and now that property he paid 105k for is worth high 200's.
Now if he got a call from a telemarketer saying we'll fly you anywhere you want to go for free, you can use your equity and it won't cost you anything because the tenant, govt and everyone else will pay your mortgage for you plus we have a bank, solicitor and others to make it happen for you, I could imagine to him it would look a great deal.
These company's don't just idly decide to dial any old number and see if they can get some sucker in. They look at incomes, family makeups, area geographies, working classes etc to target likely probabilities. They don't care if they call you guys who are educated and savvy investors and you say to rack off. They move on and find someone who isn't so educated in real estate matters. There are people out there who do have other things they believe to be important to them which doesn't include investing, sadly.
But that doesn't make them bad people, stupid or deserving to be completely ripped by clear cut LIARS and CHEATS.
The banks have a moral and business obligation to disclose to someone if they KNOW you have paid far too much for a property. They KNOW you have been ripped and we aren't talking about a couple of bucks, we are talking 20, 50 even 100 THOUSAND smackers. AND, they did this in cahorts WITH the developers. Every single person to a man involved in these cons should be jailed for fraud and any other charge that could be made.
Also, even if some of us don't agree with all Neil J says it doesn't mean he is always wrong and everything he says is trite. He makes some very valid points regarding this issue, and others, and we shouldn't just disregard his opinion.
About 6 yrs ago I went to work for a supposedly reputable franchise investments company and what an eye opener. I stayed 1 month and saw the carnage they would leave behind. The blatant lies and deceit you couldn't begin to believe. The money involved here is obscene and these people will do anything to get you to buy from them. The pressure applied is done by salespeople who really know what they are doing. I found out years later the owner was up for fraud and hopefully he ended up behind bars.
Please reconsider your attitudes of "it's your own fault if you don't do your research etc". If it was so simple why would so many people be caught up in it. These people have lost everything, and I've been there. They have my full sympathy and the blame should never be laid at their feet. Being naive is not a criminal offence, but fraud and deception are. When it occurrs by those people we rely on and trust, it's reprehensible.
Kev
www.nundahrealestate.com.au