I read with interest that Westpoint Corp seem to be falling apart withAsic now trying to wind uo te corporation with yet another of there projects now being put in the hands of recievers. If we look at the Mezzanine finance which has as such as $300 million of investors funds tied. This collapse could have a huge impact on a lot of people for a number of reasons. Firstly Westpoint Mezzanine finance was being heavly promoted by a lot of financial planners who were being paid up to 10% commission. I have warned people I know for some time that this type of investmement high risk. A person I know has had a great deal of money invested in the scheme. The financial planner who sold them the product told them there money was secure. Secondly this product has been sold to a lot of Mun and dad investors, many of which have borrowed against there homes using a line of credit to then invest in Mezzanine finance.
For thoses on the forum who believe that the property industry would be cleaned up by placing it under the control of asic, think again. These Mezzanine finance products could only be sold by financial planners there decision to promote this product may have had more to do with high commissions that what was good for the client.Nigel Kibel
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Hi Nigel,
Thanks for the info, I have a client that is considering investing in Westpoint. I’ll suggest to them to do some research.
Kind regards,
Smart CookieInteresting comments Nigel and it confirms my thoughts about most finacial planners.
There is no simpe answer to cleaning up the industry, there will always be bad apples.
Some who try and take advantage of others but many just don’t know what they don’t know, but give “advice in good faith”
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auHappens every time.
Estate Mortgage
Pyramid Building Soc
Cambridge Credit.
Every Boom, at least one high interest investment collaspes. People never learn.
At some stage ppl must be responsible for themselves and if looks too good to be true…..
Bet this will not be the last. Next twelve months should be interesting
part of the blame must lie with ASIC – these unregistered schemes are all over town yet they do nothing about them. our company does the right thing and abides by the law and it is frustrating to see others flouting it without ASIC cracking down on them. The Westpoint schemes are of such a magnitude and so widely promoted that is is impossible to belive that ASIC didn’t know what was going on – if not they should have.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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