Signs of Bogus Property Ads

Not easy to do.

• Always check the local value of property in the area. (these adverts may target out of state buyers)
• Ask local council  and other real estate agents if any issues like having a buffer zone because the property floods.
• Or having a methane gas leak  (old rubbish tip) or a chemical waste dump site next door to housing estate.
• As you may be paying extra for sales commission and developers commission.
• Do not rely on their solicitor or their valuer get independent advice and services.
• If they will not give you the interest rate and term of any finance they are offering to you be suspect of deal.
• Check if any roads/ train lines are planned to go through property in question in the future.
• At the very least of due diligence Google Map the site to see what street looks like and as I noticed in Mooropna Vic on a block of land that the land was right next to a dry river bed which I would assume is now possibly flooding over the site I was looking at due the recent flooding in the area.
• Check likely flood zones as land might flood

(if they start kicking up a fuss over you going to get  independent advice – become suspect on the deal)

• As Neil Jenman says DON'T SIGN ANYTHING until you get independent legal advice.
• If the returns are too good to be true they probably are too good to be true.
• Rental Guarantee's can be paid for by inflated purchase prices
• Be wary of mezzanine finance deals see http://www.investopedia.com/terms/m/mezzaninefinancing.asp

You may wish to read Neil's book called DON'T SIGN ANYTHING to get an idea of what can happen.