Singapore real estate Investment Scams: here is a checklist of 7 ways to spot investment scams
Are you in Singapore trying to achieve financial freedom or perhaps trying to prepare for retirement. Making a sound investment is a potential means of achieving your financial goals. However, there are thousands of investors all over the world prying on this human desire. We are here to help you not handle your hard earned money to investment schemes which are nothing more than a lie.
To help protect your pocket and probably your future, remember to check the following red flags.
A promise of high return, low to zero risks.
Investment scam artist appeal to human nature of greed by insisting on the high returns only. When you ask about the projected returns, the scam artist will be quick to respond with a 100% safe promise, or that the risk is “negligible” with fewer details after that. In most cases, these scammers will tell you what you want to hear, that your money is safe.
When you encounter such response, you ought to ask in detail or find it yourself how the real estate company is to materialize the returns with no risk. If you notice that the explanation is getting twisted or forced, tread carefully. Always keep in mind that in business there is always a return trade off – a higher returns investment goes hand in hand with a higher risk.
Most Singaporeans, like any other citizens, are risk-averse. Scam artist takes advantage of the thrill of keeping your money and making a profit. This gives investors peace of mind knowing that they will not lose money if you invest in the real estate scheme they are offering.
Commission for referrals
One of the most effective methods of marketing is a “word-of-mouth.” You will notice that some real estate companies promise lucrative commissions if you refer their schemes to family and friends. If you tell people close to you, their guards will be down as they trust you. In the end, you and the people you referred become victims of scam real estate investment opportunities.
Time is the only way to do due diligence on any company. Scam artist in real estate business now this and they will do anything not to give you time to think and do your research. Typical tactics to give investors pressure include claiming that there is a limited-time discounted price offer or there are incentives for on-the-spot sign-ups.
Nowadays scammer is not hesitant to invest in fake success stories. They will pay popular personalities to put phony success stories which wins trust from unknowing potential investors. So, unless you know the person personally, always take this testimonial with a pinch of salt.
Too good to be true investment schemes
Again, human psychology comes into play. We want to get rich fast and with as minimal effort as possible. Therefore, real estate scammer in Singapore will offer investment opportunity with short-term investment, high returns, low risk of capital and a solid track record. Immediately you see this you will jump on the deal instead of quickly walking away.