A lot of people continue losing their hard-earned monies to Real Estate Fraudsters every year. My own estimate is that up to $2m is lost every year to con men who sell non existent residential properties.
Having been studying real estate fraud stories that have been appearing in the local press I have realised the following trends.
- People are losing money through buying from individuals
- Loss of money through buying infill residential stand
I would have wanted to give more trends but for now let me concentrate on the above 2 trends/observations. So why should you avoid buying from individuals?
1.The Risk with Individual Real Estate Players: Buying stand kubva kumunhuwo zvake is looking for trouble. Munhuwo zvake haana chaanotya pa reputation yake. Anyone can place an advert in the local press and dupe people and manage to run away without fear of damage to reputation and the resulting repercussions.
2. Infill Stands: They are the easiest to sell it seems. First time residential buyers are likely to go for nice suburbs. Mt Pleasant, Strathaven, Mabelreign, Marlborough, Avondale etc. Now in these suburbs there are no new developments but instead you are likely to find Infill residential stands. These infill residential stands pose the greatest risk when it comes to real estate. Most of these infill residential stands are fake.
So how can you reduce being conned?
- Avoid buying residential stands advertised as Infill Stands, even involving lawyers in the purchase process does not help. A close friend was duped together with his lawyers when he wanted to buy an infill stand in Marlborough.
- If you can just avoid buying from individuals-even close friends and relatives cannot be trusted when it comes to buying real estate.
So what do we recommend?
To reduce risk just buy residential stands from established reputable companies. Try CABS, Fidelity, Old Mutual, FBC etc
Iam yet to see anyone who has taken the above institutions to the courts after being conned. These institutions have a reputation to protect so they is no need to risk by selling fake residential stands.
Iam yet to see in the local press a single incident where developments by these institutions have been destroyed by the City Council or where anyone took them to the courts.
So avoid Infill Stands and also avoid buying from Individuals. Even real estate agents have been known to dupe unsuspecting members of the public. So for safety try established institutions and save your money.
Good Luck
