Investors warned over get-rich-quick property investment schemes

Property investors warned over get-rich-quick investment schemes

It was reported that investors are risking their savings on ‘get rich quick’ property investment schemes. People who are sick of plummeting pension funds and low savings rates are being targeted and talked into signing up to learn property secrets that will make them rich.

This is worryingly like the presentations that were given before the Credit Crunch to large groups of novice investors, regarding purchasing Off Plan properties. At that time companies took large sums of investor’s money in the promise of high rental yields and massive capital growth. When the housing bubble burst many investors who had handed over their money without completing any Due Diligence were left either holding a property in negative equity (with a rental income that never hit the quoted figure) or worse still had no property at all to show for their money – there simply being a building site where the property should have stood. To make matters worse many of the companies then went bankrupt.

I can speak from experience as we were guilty of falling into this trap ourselves, thankfully our flat was built and we had the foresight to expose ourselves to the risk of only one property. We were guilty however of not doing enough due diligence, a situation I have now rectified with any properties I purchase.

It is paramount that you do your due diligence, especially if you are handing over large sums of YOUR money upfront. If there is pressure to sign, or you are constantly bombarded with calls following a meeting then let it ring warning bells in your mind.

Listen to you ‘gut feel’ when it tells you that the company has stepped over the line from being professional and following up, to simply harassing you to get a sale. Don’t fall for the classic marketing ploy to promote scarcity. If you take a week or two to do your due diligence and you call the company back and say ‘I’m ready to buy now’ trust me they will find a deal for you.

Just remember that there really is no such thing as a ‘Get Rich Quick Property Investment Scheme’ in property investment and you would be wise to avoid any scheme that promises such treasures. In property investing, due diligence wins the game long term.

For sensible property investment advice, contact Alton Property Partners.

Gill Alton

Connect with me: Google+
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

More PostsWebsite

Alton Property Partners
6 Bramble Drive, Maidenhead BerkshireUKSL6 3NX United Kindom 
Gill@altonpropertypartners.co.uk •0845-095-5060

Tags: , , , , , ,

One Comment

Leave a comment
  1. Mark Barrow October 18, 2012 at 6:43 am #

    Very sound advice!

Leave a Reply