News Column

Australia : Victorian property investment promoters warned

July 10, 2014

Property investment promoters in Victoria are on notice to play it straight with consumers about their legal rights.

Minister for Consumer Affairs Heidi Victoria said Victoria s consumer watchdog was working with other Australian Consumer Law regulators to examine the practices of property investment promoters.

Consumer Affairs Victoria has contacted nearly 20 property investment promoters in Victoria to remind them of their responsibilities under the Australian Consumer Law, Ms Victoria said.

When potential investors attend a free seminar for information and advice, they should not be subject to a hard sell.

Some promoters are using high-pressure sales tactics at such seminars to push training packages or educational services.

The Australian Consumer Law provides cooling-off rights on contracts signed in certain circumstances, and promoters must also ensure only true and accurate information is given during seminar presentations.

Ms Victoria said consumers can take steps to protect themselves from high-risk property investments.

If the claims about the returns from the scheme sound too good to be true, they probably are, Ms Victoria said.

Ms Victoria urged consumers to seek independent financial and legal advice before investing in property.

Be particularly wary of property investment promoters who advocate high-risk property investment through self-managed super funds.

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Source: TendersInfo (India)

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