Calls for Government to Take Action over Property Cowboys
The government is being urged by campaigners to take action against cowboys who offer property investment courses to vulnerable individuals. These courses are not cheap, and it can leave people owing thousands of pounds on credit cards or bank loans to pay for a course that has very limited benefit.
Why Do People Buy Them?
Most people would love the idea of getting rich quickly, whether it is through a lottery win or recording a best-selling song. The idea of property investment can be a sound one. There is money to be made in buying a run-down property, renovating it and then selling it on, and experienced property developers can make a lot of money this way. There is also money to be made in buying a property and renting it out. Many people like the idea of being able to give up the 9-5 and live on property income, which is what makes these courses so popular in the first place.
How Do the Cowboys Hook People In?
Quite often, these initial property courses are free. This encourages people to attend. Who doesn’t love a freebie? Especially if it is about something you are interested in anyway and it promises to get you rich quick. Once there, the salesperson uses high-pressure sales techniques to make people sign up to more in-depth courses that can cost thousands of pounds. They play on emotions and talk about ‘limited time offers’, among other things to get people to pay for these courses, and many people fall for them.
Why Has Nothing Been Done About It?
The market is incredibly murky. The Financial Conduct Authority has stated that this is an issue for the Treasury to deal with. The Treasury has said that the problem sits with the Competition and Markets Authority (CMA). The CMA have declined to comment and have not taken any action to deal with the problem. Meanwhile, the cowboys are happily fleecing unsuspecting individuals for thousands of pounds.
Do These Courses Have Any Value at All?
People can be a little daunted by the idea of property investment, and although they are interested in the concept, they are not sure how to make money out of a venture. However, a good solicitor such as https://www.samconveyancing.co.uk/news/conveyancing/conveyancing-costs-explained-3366 would be able to explain everything a potential investor needs to know, and conveyancing costs are a fraction of the price of these courses.
How Do You Invest in Property?
As with any business venture it is important to do your research before you part with any money. Focus on a location you would like to invest in and then talk to local estate agents before you do anything else. They will let you know what the return on your profit is likely to be, and they won’t charge you to do this. Make sure the figures add up by talking to a mortgage broker or financial advisor, and speak to a conveyancing solicitor about the legal technicalities too.