A property club advised me that I can get 20% interest or more if I give them my equity to invest. Should I do it ?

updated 15th October 2016

Answer)

Absolutely NOT!

Being a property consultant myself, I can’t tell you the amount of times I hear ‘Investment Disaster Stories’ from people who have lost money on these schemes.

When I’m told of these stories there is little I can do to help them as their money has gone, never to return.

I’m sure these clubs will advise that it’s all guaranteed and that it’s safe investing, but ask the investors of Fincorp if they agree with that statement and if they will ever see their money again. The answer is not likely.

Apart from this, has the property club told you they will be making massive commissions from your equity with absolutely no risk to them, just YOU.

Lastly, at the end of the day you should always have full control of your equity.

If you pass over the control to a property club you are not investing…..you are gambling!

This article has been republished with permission from Your Investment Property magazine. Try our Loan Repayment Calculator and find the best repayment strategy for you.

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