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Investors Lose Millions

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A property racket disguised as financial advice has cost hundreds of investors millions. In a Sun-Herald investigation Linton Besser and Stuart Washington have unearthed evidence of cold-blooded tactics employed by former bankrupt Faye Kotsis's Heritage Financial Solutions to sell overpriced, second-rate properties.

I'm not sure how such an unbalanced report got to the front page. First of all, everyone knows property ain't financial. Secondly, no mention of the stamp duty her operation has raised. Thirdly no credit given for the wealth effect her operation gifted on neighbours' houses. I say let the free market work, you meddling reporters!

Those caught in her web have nothing to worry about; sure they overpaid buying into something too good to be true using methods they didn't understand but that just means they have to wait a little longer before they too become rich.

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To get a $50 grocery voucher people sign a six figure contract? Have we suspended natural selection? There has to be a better planet to live on.

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To get a $50 grocery voucher people sign a six figure contract? Have we suspended natural selection? There has to be a better planet to live on.

No, no. This IS natural selection!

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No, no. This IS natural selection!

I'm not sure if that is entirely fair...in our environment of government-endorsed property speculation and tolerated industry misdirection you can see where people, particularly the young people, can get fleeced. Has everyone here always made the right and proper investment decsion, fully informed, using reliable advice? We all think we do. But at some point that involves trust.

There but for the grace of god, I believe is the saying.

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The "system" preys on the inexperienced and ignorant. Government grants and tax breaks entice "investment" in residential real estate.

http://www.smh.com.a...1029-28drp.html

Buried in debt after property promises fail

October 29, 2012

Stuart Washington, Linton Besser

DANIEL BOSTOCK'S foray into the heady world of property investing ended in bankruptcy at the age of 22.

Now he is left wondering whether the cards were stacked against him from the start.

Mr Bostock was just 18 when he bought a $165,000 unit in Cairns sold to him by Jordan Myall, a family friend who owned one or two properties and was getting around in a Chrysler Crossfire. Mr Bostock, who lives in Brisbane, says he regarded Mr Myall as ''an older cousin that you wanted to be like''.

At the time of the sale in 2006, Mr Myall was working for Blue Pacific Realty, a real estate agent owned by companies linked to a Sydney property marketing firm, Sunshine Pacific, where his father, Alan Myall, and his father's then wife, Faye Kotsis, were working.

Advertisement Mr Bostock does not remember being told that the property he was sold was owned by companies linked to Sunshine Pacific. Nor does he remember being told Fast Loans - the company that provided him with the high-interest loan for his deposit - was also owned by parties linked to Sunshine Pacific.

Nor does he recall any discussion that the body corporate fees for the unit would be set by a company - you guessed it - also owned by companies linked to Sunshine Pacific.

...

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DANIEL BOSTOCK'S foray into the heady world of property investing ended in bankruptcy at the age of 22.

This guy will probably learn a lot from this and come out a successful person as a result. A lot of successful people have been bankrupt.

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I'm not sure if that is entirely fair...in our environment of government-endorsed property speculation and tolerated industry misdirection you can see where people, particularly the young people, can get fleeced. Has everyone here always made the right and proper investment decsion, fully informed, using reliable advice? We all think we do. But at some point that involves trust.

There but for the grace of god, I believe is the saying.

What you say is true, of course, and I'm not an unsympathetic git (I keep telling myself that). You have to remember that it's not a one-move game - after making a dud decision to get a small sweetener, people will hopefully learn.

Government, of course, has a role in not allowing excesses or systematic dudding of the citizenry and its recent behavior in the housing market is certainly unacceptable in my book.

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Perhaps to be fair to politicians, they also consider public opinion in their policy making.

With a very high proportion of the population owning property, people *want* a property bubble.

There is no way that property turkeys will vote for Christmas.

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Awww... these wonderful real estate sharks are going to educate the poor ignorant first home buyers in Canberra:

http://canberratimes...1029-28fyn.html

Advice on offer for first-time buyers

October 30, 2012

Stephanie Anderson

It's been described as pretty dead, slightly oversupplied and stuck in a holding pattern, but is Canberra's property market good for buyers?

House hunters may not get an answer but they will get some guidance at a home-buying seminar hosted by Service One this evening.

Chief executive of the banking institution, Peter Carlin, said recent rate cuts and renewed interest in the market made it a timely event.

''The market was pretty dead for a while, but inquiries seem to be picking up,'' he said. ''There's more activity out there.''

Mr Carlin said the seminar would be aimed at first home buyers who are daunted by a practice saturated with unknown phrases such as negative gearing and capital gain.

He said attendees could also glean advice from agents, financial planners and solicitors.

The past two months have recorded auction clearance rates of less than 50 per cent in the capital, according to figures from RP Data.

The week ending October 21 recorded a clearance rate of 22.7 per cent, with only 10 of the 44 properties listed for auction selling under the hammer. However, auction results should not be used as a barometer for the market, said Craig Bright, the president of the Real Estate Institute of the ACT.

Mr Bright said unlike markets in Sydney or Melbourne, many properties in the capital were sold through private treaty instead of under the hammer.

He said while there had been a slight softening, the market was still reasonably active up to about $500,000, and in the $1 million to $2 million bracket.

''I'm certainly not saying the market's booming, but rates have come down to a point where they underpin the market,'' he said.

Independent Property Group's sales and marketing director, John Minns, agreed that the market was reasonably solid, albeit slightly oversupplied. ''There seems to be an average of 2000 properties advertised on a weekly basis,'' he said.

''We'd say a balanced market was around 1600. But at the moment, it seems to be trending downwards.''

The Home Buying Seminar will be held at the Mercure Canberra, on the corner of Ainslie and Limestone Avenue in Braddon from 6pm. Entry is free.

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Awww... these wonderful real estate sharks are going to educate the poor ignorant first home buyers in Canberra:

http://canberratimes...1029-28fyn.html

And even more wonderfully the fairfax media putting it up on the front page as news! It's so nice that the agents provide their time free of charge in an effort to help the first home buyers that don't understand terms like capital gains and negative gearing. :)

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Mr Bostock was just 18 when he...

In a society like today the best thing to do when 18 is probably plunck down $5000 in some exotic trading account and let it ride at 100-times margin. If you win you rest easy. If you lose you declare bankruptcy.

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