Jenman advises "Do not buy property from spruikers"

[numbercruncher]

THE COMING RIP-OFF BOOM
S.E. Queensland scams set to soar.
by Neil Jenman

Australia is full of rogues; and rip-offs happen in every area. But there are more rogues and more rip-offs in South-East Queensland than anywhere in the country; perhaps the world.

There is something about Queensland that seems to attract villains and, at the same time, seduce their victims. Perhaps it's the weather, the easy lifestyle or the nature of the fun-loving people that makes victims feel safe in Queensland. Who knows?

Whatever the reason, one thing's for sure – a boom is coming for South-East Queensland, a boom in real estate rip-offs.

As these words are written (mid-2007), tens of thousands of Australians – mostly the most honest and decent among us – have no idea that they are going to become the next generation of victims of Queensland property scams. Their families will be the face of sadness on the TV shows and in the newspaper investigations in the years ahead.

From 2010 to 2015, we will look back on this period (2007 – 2010) as the years when the rip-offs boomed to new heights as skulduggery sank to new lows in South-East Queensland.

Whether it be two-tier marketing, over-priced properties, rental guarantees, house/land package deals, secure-your-retirement programs, wealth-creation schemes (or whatever name it comes under), Queensland's spruikers have a slick scam to suit everyone.

And, from yesterday, those scams are going to soar. The spruikers will be hiring more con sultants (con artists) to cope with the created demand for their over-priced properties.

And the con sultants will now be using a powerfully persuasive pitch to stitch up thousands of victims. To trusting and decent investors (who will later be cruelly dubbed greedy or gullible) the pitch will be almost irresistible. "Queensland is set to boom. It's official. Look at the headlines."

As The Courier-Mail reported yesterday (in a page three article), "Brisbane looks set for a fresh housing boom, with prices tipped to soar 22 per cent in the next three years."

And it's not just Brisbane, but "the entire southeast" (which includes the Sunshine Coast, the Gold Coast and, of course, the latest scam centres west of Brisbane – the Ipswich corridor).

The boom headlines – which will be making the spruikers salivate – emanate from a report released by economic forecasters, BIS Shrapnel.

The author of the report is Angie Zigomanis, a man who, without knowing it, has become the new pin-up poster boy for spruikers.

To be sure, Angie Zigomanis, is NOT a spruiker, nor has he got any ties to spruikers (at least from his perspective). He's merely a researcher, an intellectual who has prepared a report based on his research.

Is he right? Will prices in South-East Queensland really soar by 22 per cent in the next three years? Maybe. Maybe not. No-one really knows for sure.

But one thing that is for sure is this: In the hands of spruikers, Angie's report is a lethal weapon. He will, unwittingly, become part of their sales pitch.

Yesterday's news story will already have found its way into the sales folders of the property investment con sultants.

So, why, you may ask, is all this so bad?

If property prices in South-East Queensland are set to boom as predicted, then surely it's a good idea to buy an investment property in South-East Queensland?

Er, no, not at all.

Investing success – especially in the most scam-infested area in Australia – depends on two factors – from whom you buy and how you buy.

If you buy from a spruiking company, you will pay at least 20 per cent (and perhaps as much as 30 per cent) more than the property is really worth.

In short, if you buy in 2007, you will be paying 2010 prices (assuming Angie Zigomanis is right and prices do increase by 22 per cent).

If prices do not increase by 22 per cent – or if they remain stagnant or fall – you may have to wait another five (or ten?!) years for your property to be worth the price you paid.

This is exactly what happened to thousands of investors in the 1990s. It's happening again in the 2000s and, due to this "boom forecast", it's going to get even worse.

Therefore the message should be clear – DO NOT BUY PROPERTY FROM SPRUIKERS. If you don't know how to identify a spruiker, you're probably dealing with a spruiker. Don't buy.

If you really want to invest in property, then buy from a normal real estate agent.

Yes, as dodgy as many may be, when it comes to market prices, your typical agent usually sells typical real estate for close to its true value (if anything, often a little below the true value).

Be careful because many of the big name real estate firms have set up what they call "investment divisions" which, in reality, are just sham fronts for spruikers.

Often the best investments are bought from the worst agents.

This may seem ridiculous but there's a lot of truth in it. A savvy investor once said, "If agents have flies in their window, they're likely to have some good deals. But, if the flies are dead, they're likely to have some great bargains."

Whatever you do, stay away from spruikers (all of them!). If you want to invest, go to any typical real estate office. When you find something you think may be worth buying, don't sign anything (no matter what!!) until you get independent legal advice and an independent valuation.

Remember, there are more rogues and more rip-offs in South-East Queensland than anywhere in the country.

I don't know if a property boom is coming for South-East Queensland. But I do know, for sure, that a rip-off boom is coming.

And that's one boom you must avoid.

http://www.jenman.com.au/news_item.php?id=389


Gotta love SE Qld realestate "booms"

 

[Kathmandu]

Re: House prices to stagnate for 'years'

http://www.jenman.com.au/news_item.php?id=389


Gotta love SE Qld realestate "booms"

So does that mean get in quick before it even gets more sharky NC?




Dave

 

[WaySolid]

Gotta love those SEQ property "booms"

Well I think so! And my bank balance agrees

Note the CAR figures in that article are hardly boom like, in fact over the 3 years the CAR is lower than long term averages.

The strength in Brisbane has been great this year, in my suburb I estimate and have some valuer feedback that says 10% in the first 6 months, and it's kept going since then.

 

[kam75]

We need more people like Neil Jenman to protect Australians from the scum of the wealth creation industry. To clean up the stockmarket education sector. There's a lot of cons popping up.

 

[tech/a]

We need more people like Neil Jenman to protect Australians from the scum of the wealth creation industry. To clean up the stockmarket education sector. There's a lot of cons popping up.

All you need is common sense.
Which isn't that common!

The people that "Need" a Jenman
Shouldnt be involved in Property or The Sharemarket.

 

[Lancelot]

We need more people like Neil Jenman to protect Australians from the scum of the wealth creation industry.

Jenman is a real estate agent himself, he is the same scum he is trying to protect people from.

I tried to use him (his firm) once, they were worse than who I ended up using

To clean up the stockmarket education sector. There's a lot of cons popping up.

Now theres an industry thats full of sharks

 

[Lancelot]

All you need is common sense.
Which isn't that common!

The people that "Need" a Jenman
Shouldnt be involved in Property or The Sharemarket.

snap

 

[numbercruncher]

All you need is common sense.
Which isn't that common!

The people that "Need" a Jenman
Shouldnt be involved in Property or The Sharemarket.

And then prices wouldnt be a fraction of what they are now - RE spruikers rely on greater fools, thats how ponzi schemes work.

 

[Glen48]

Love to see an interview with those loud mouths like Anita Bell who wrote books on how to own 10 properties in 10 days etc and see where they are now.
The 21 yr old who opened her own office on the Sunshine coast last year and making a gazzillion a day, of course she was blonde good looking and young.

 

[kam75]

All you need is common sense.

Try telling that to a newbie whos just been shown how to replace his income by the end of the month writing covered calls.

 

[tech/a]

Can you give me the link!

 

[Garpal Gumnut]

All you need is common sense.
Which isn't that common!

The people that "Need" a Jenman
Shouldnt be involved in Property or The Sharemarket.

While not as knowledgeable as many on this forum about property I believe that the origin of the word JEN in Old English is a DONKEY.

So I would be careful about following a person called JEN MAN.

Genes will out.

gg

 

[chops_a_must]

What do the women say about that GG?

 

[numbercruncher]

He has some worthwhile warnings on his website - people probably wont embrace them until hindsight becomes a wonderful thing - Kinda like the suckers in storm financial etc etc etc....

For many years, the Real Estate Institute of Victoria (REIV) has misled and deceived real estate consumers.

Whether it be trying to justify (or deny) dodgy practices such as false price quoting or whether it's brushing-aside common claims of widespread dishonesty, as far as real estate bodies go, they don't come much dodgier than Victoria's Real Estate Institute.

The institute is headed-up by Enzo Raimondo (who once told the Victorian public that he did not know what was meant by dummy bidding). It's Raimondo's job to spread the myth that agents who belong to the institute are all honest and committed to a rigid code of ethics. [It's hard not to laugh when writing such a statement].

http://www.jenman.com.au/news_item.php?id=413

 

[Lancelot]

spruikers rely on greater fools, thats how ponzi schemes work.

QUOTEkam75

Try telling that to a newbie whos just been shown how to replace his income by the end of the month writing covered calls.

Plenty of greater fools NC

 

[Lancelot]

He has some worthwhile warnings on his website - people probably wont embrace them until hindsight becomes a wonderful thing - Kinda like the suckers in storm financial etc etc etc....




http://www.jenman.com.au/news_item.php?id=413

Of course jenman is the only honest real estate agent

Him and his website say's so

Having dealt with his lot, and others, I find no difference, except one likes being in front of camera more and having websites telling all who listen how wonderful he is

Spruiker

 

[tech/a]

Ive found that.

While you cant control every aspect of risk,if you can control the risk analysis of an investment,ie its not up to any other party to mitigate or evaluate risk other than you.
The more control others have in an investment the more the risk (generally).

This normally sorts out the wood from the chaff!

 

[grace]

Gotta love those SEQ property "booms"


The strength in Brisbane has been great this year, in my suburb I estimate and have some valuer feedback that says 10% in the first 6 months, and it's kept going since then.

Well, you may be lucky......most are not so lucky as you.

I have plenty of evidence which shows the peak was very early in 2008. Close relative just sold down 20% (offer 6 months ago, offer and contract 4 weeks ago). ouch.

I've been watching the Brissy market closely.

Remember, your property is only worth what a buyer will pay, not some valuation! (and there are plenty of valuers getting it wrong these days!)

 

[awg]

Ive found that.

While you cant control every aspect of risk,if you can control the risk analysis of an investment,ie its not up to any other party to mitigate or evaluate risk other than you.
The more control others have in an investment the more the risk (generally).

This normally sorts out the wood from the chaff!

I absolutely agree.

So long as you have sufficient resources and know how, the involvement of additional parties has always diminuished MY profit

So far as RE agents, salesmen etc, as a buyer you got to remember they work for the OTHER party, they try like crazy to give you the impression that they are looking after your interests, but you are at the bottom of the pile 1) themselves..maximise commission,

2) client..make sale at highest price.

3) to the buyer nothing at all apart from the legal minimum, unless they want to sell some more things to you in the future.

I dont know a way to circumvent the learning process though, all the successful businessman I know can tell me of the bad deals they have had, if I question them thoughtfully

 

[numbercruncher]

Gotta love those SEQ property "booms"

Well I think so! And my bank balance agrees

Note the CAR figures in that article are hardly boom like, in fact over the 3 years the CAR is lower than long term averages.

The strength in Brisbane has been great this year, in my suburb I estimate and have some valuer feedback that says 10% in the first 6 months, and it's kept going since then.

Which suburb are you talking Waysolid ???

My bro just put a place under contract for 350 on the GC that was originally asking 420 ..... plenty more fat to come off as well imho .....