High-risk property investments spruiked by financial affairs promoters have come under the spotlight of Victoria’s Consumer Affairs watchdog.
Consumer Affairs Minister Heidi Victoria says the state’s consumer affairs agency is working with other Australian consumer law regulators to examine the practices of about 20 property investment promoters to remind them of their responsibilities under national consumer laws.
The minister 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,” she said.
Ms Victoria said consumers could 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.
She said potential investors should not be subject to a hard sell when attending free seminars offering information and advice. “Some promoters are using high-pressure sales tactics at such seminars to push training packages or educational services,” the minister said.
“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.”
For more information about high-risk property investments, go to www.consumer.vic.gov.au
