RE Speculation Scams Drawing Scrutiny: UK
FT.com reports the government in the UK is cracking down on RE scams. "The Financial Services Authority issued its first fine on a property-related matter to a regulated financial adviser. The adviser, Courtover, was fined £20,000 for approving a 'misleading property promotion' for the issue of unlisted shares in a company selling overseas residences, promising returns of 20 per cent."
"Most of the investors in property syndicates have borrowed heavily to buy unbuilt flats, some using credit cards to pay deposits."
"Inside Track, the UK's biggest buy-to-let property syndicate, also weighed in on Tuesday , calling for the government to expose 'bad apples'. It says its clients purchased one of every 12 flats built in England last year." And that's just one syndicate!
"Like its peers, it also offers investors expensive property seminars as a prelude to encouraging them to invest. Inside Track charges £2,400 for a two-day seminar and £6,000 to become a member of its syndicate."