Mackenzie McCarty wrote in a recent article that the government of Western Australia is warning potential investors against east coast property spruikers, following a spate of so-called ‘free’ property investment and wealth creation seminars held by groups based out-of-state. Commissioner for Consumer Protection in WA, Anne Driscoll, says a number of eastern states’ operators have been conducting the ‘free’ seminars in WA and more are scheduled – but that those who attend may not be getting what they expect.
“The advertising of these seminars gives the impression that those who attend simply receive free information about how to secure their financial future but, in fact, they are subjected to high pressure sales tactics that promote coaching and mentoring programs costing between three and ten thousand dollars,” says Driscoll.
Yet Perth based general manager of sales and operations at AFG, Mark Hewitt, says questionable property investment seminars have been around for decades – and certainly aren’t unique to WA. “I think property investment seminars have been common place in the market for probably 30-plus years and I don’t think they’re distinct to Western Australia, they were quite common in southwest Queensland at one point and I still think they probably are. “If anything,” adds Hewitt, “it’s ‘buyer beware’. Obviously, you need to make sure everything adds up.”
Driscoll says the seminars highlight the benefits of property investment, while downplaying the risks involved. “They also appear to exaggerate the potential gains from property and other investments by following the promoter’s programs. The seminars appear to be just a clever sales tactic to get people into a room for many hours with the hope that they will sign up to expensive training courses, but very little information is offered for free. The question to ask is what would be the benefit to a promoter of holding a ‘free’ seminar if they didn’t sell something at the event?” “We believe that some of the courses and programs on offer are just the next stage to get investors to make large financial investments that will be of benefit to the promoter, or simply a way to sell their coaching and mentoring packages.” Driscoll says Consumer Protection officers have attended three separate seminars and reported that all followed a similar formula. “I am concerned that the practice of offering special discounts to sign up on the day is designed to prevent the participants from having time to think carefully about their decision and getting some independent professional advice, “ the Commissioner says. “We warn attendees to resist the pressure to sign any contracts or pay any fees when attending these events, without first getting advice from financial advisers and property investment professionals. Consumers should be wary of any ‘get rich quick’ claims being made.
If you would like to discuss this topic, John can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).
