Property scams draw warning
The Government should beef up regulation of "unscrupulous property developers", the Consumers’ Institute has said.
Monday, April 11th 2005, 7:56AM
by The Landlord
The institute singles out the group in a submission to the Government’s Task Force on the Regulation of Financial Intermediaries.In a sweeping review, the eight-member task force is looking at the role of everyone - share brokers to real estate agents, bank staff to journalists - in the provision of financial products and advice.
It says the task force should broaden its definition of financial products so "scams", notably via seminar promotions, are included.
Otherwise "unscrupulous property developers" are left "peddling their over-hyped and over-priced investment properties".
The Institute cites Gold Coast property scams involving overpricing, high fees, false promises and high-pressure sales tactics.
"There have been numerous seminar promotions of property investment over the past decade where investors are given very little disclosure or legal protection.
"It is essential that such schemes are covered by regulation."
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