Spotting a Property Spruiker from a Mile Away: Your Guide to Staying Safe

Definition Spruiker - "A Property Spruiker is someone who promotes or sells properties, often through seminars and other marketing tractics, with the goal of making a quick sale rather than providing impartial, long-term investment advice."

The Wolf of Wall Street a.k.a a very well known Spruiker

Top 10 Phrases Property Spruikers Use to Elicit Fast Responses.

1. “This is a once-in-a-100 year boom.”Spruikers often claim that the investment is unique and won't be available again, pressuring you to act quickly.

   
   

2. “You have to act now—properties like this don’t last.”This creates a false sense of scarcity, pushing you to make hasty decisions.

   
   

3. “Our clients are already lining up.”Implying high demand can make you feel you're missing out, prompting immediate action.

   
   

4. “Only a few spots left—reserve yours today.”Suggests limited availability, encouraging you to commit without thorough consideration.

   
   

5. “This property is guaranteed to double in value.”Offering unrealistic growth promises can cloud your judgment and lead to poor investment choices.

   
   

6. “You can’t go wrong with property.”Oversimplifying the investment process can mislead you into underestimating potential risks.

   
   

7. “Why pay off someone else's mortgage?”This emotional appeal may push you towards property investment without fully understanding the implications.

   
   

8. “Negative gearing means the government helps you buy.”Misleading financial claims can make the investment seem more attractive than it is.

   
   

9. “...a little known secret....” Implying there is some piece of information that isn't already broadly known or available to you. Whereas the truth is it's no secret at all.

   
   

10. “You can always sell if you get into trouble, but you’ll still be ahead.”Downplaying potential losses can result in risky financial decisions.

    
    

Protect Yourself from Property Spruiker Tactics

Seek Independent Advice: Consult with licensed advisors and if you gut tells you this doesn't make sense then walk away.

Conduct Thorough Research: Investigate the property market yourself, understand the risks, and assess your financial situation before making decisions.

Avoid High-Pressure Situations: Take your time to consider offers and never feel rushed into a commitment.

Verify Claims: Be cautious of promises of guaranteed returns or exclusive opportunities—these are often red flags.

By staying informed and cautious, you can protect yourself from the tactics used by property spruikers and make investment decisions that align with your financial goals.

And if you hear any of the above phrases.....run!

Andrew Nott