A Western Australian property spruiker will have to hand over $70,000 worth of compensation... Survey says Sydney and Melbourne property prices will grow for another six to 12 months...
Western Australia rent-to-buy spruiker ordered to pay $70,000 in compensation
A Western Australian property spruiker will have to hand over $70,000 worth of compensation after admitting to making false and misleading statements about assisting people to buy properties.
The compensation is the result of Rowan Amanda Lines, director of Presto Property Solutions, reaching a settlement with WA’s Consumer Protection office in relation to advertisements made regarding a “rent-to-buy” scheme.
Rent-to-buy schemes are targeted at people who don’t qualify for a home loan through traditional means.
Buyers enter into a contract whereby they agree to pay rent to the seller in return for being able to purchase the property at a later date.
The schemes usually involve paying a substantial deposit as well as an additional regular payment above the rent which is intended to go towards the eventual purchase of the property.
According to Consumer Protection, Lines made the false claims to three prospective buyers in 2010, leading them to believe that she was the owner of the properties at the centre of the scheme when she was not and that she could help them buy the houses without the need for a loan.
As director of Presto Property Solutions, Lines also distributed false advertisements online and throughout suburbs in Perth that made claims such as “I buy houses fast” and “No banks.”
As well as having to provide the $70,000 in compensation to the three prospective buyers, Lines and Presto Property Solutions entered into an enforceable undertaking with Consumer Protection which prevents them from representing to potential vendors that she or the company actually purchase the properties and acquire the freehold title to the properties when they do not, representing to potential buyers that she or the company own the property, unless they are in fact the owner of the freehold title of the property, representing to potential buyers that they can purchase the property without a bank loan, unless there are reasonable grounds to make that claim.
Consumer Protection acting commissioner Gary Newcombe said the case highlighted the need for consumers to exercise caution when entering schemes such as rent-to-buy.
“We urge consumers to exercise a high degree of caution before entering into a rent-to-buy arrangement, as buyers who default on their tenancy agreement or can’t get finance to buy the property at the end of the option period are at risk of losing the deposit they paid and the money that was intended to go towards the purchase of the property,” Newcombe said.
“Consumer Protection has taken numerous actions against property promoters who have made misleading statements and engaged in deceptive conduct in order to attract people who are often desperate to sell or buy property,” he said.
“Our actions against promoters of rent-to-buy schemes and the Court outcomes that we have achieved should send a clear message to the industry that they need to act fairly with consumers or face the consequences.”
Survey says Sydney and Melbourne property prices will grow for another six to 12 months
Representatives of some of Australia’s biggest financial institutions and property firms still have a positive outlook for real estate markets in Sydney and Melbourne for the short term at least.
According to the results of the latest Australian Property Institute (API) Property Directions Survey, the majority of respondents believe the upswing in residential property prices has between 6 – 12 months to run in each city.
According to the survey results, 44% of respondents believe Sydney’s price boom has six months to run, while 33% believe it still has year’s-worth of upward movement.
In Melbourne, 50% of respondents believe the Victorian capital will see prices rise for another six months, while 33% believes it will more likely be another 12 months of increases.
In terms of sustainability, Brisbane’s real estate is looked on as being the safer market, with the majority of respondents believing it is much less likely to form a bubble compared to either Sydney or Melbourne.
“For Brisbane, 70% of respondents indicate that residential property is not in a bubble, 24% indicate that it is in or is entering a bubble and 6% are unsure,” API NSW president George Vallas said.
“Results were split for Sydney, with 50% of respondents indicating residential property is in or is entering a bubble, while 50% indicate it is not in a bubble,” Vallas said.
“For Melbourne, 56% of respondents believe residential property is in or is entering a bubble, while 44% believe it is not in a bubble,” he said.
Respondents were also asked what they believed where the main drivers of residential capital growth levels for Sydney, Melbourne, Brisbane and Perth, with interest rates a common denominator across the four cities.
For Sydney, Melbourne and Brisbane 100% of respondents believed interest rates were either a significant or very significant driver of property prices, while 88% of respondents said the same thing for Perth.
Sixty-five per cent of respondents believe interest rates will remain at similar levels for the next year, while 80% believe they will be higher in three-year’s time.
Foreign investors are also looked upon as a major growth driver for Melbourne and Sydney, with 100% and 88% of respondents believing they are having a significant or very significant impact on prices in the two markets respectively.
The majority of respondents (80%) believe foreign investment levels will stay at similar levels for the next year, with only 35% believing they will be lower in three-year’s time.
Negative gearing is considered a major growth driver, with more than 50% of respondents believing significant or very significant impact on prices in all four markets.
A Western Australian property spruiker will have to hand over $70,000 worth of compensation after admitting to making false and misleading statements about assisting people to buy properties.
The compensation is the result of Rowan Amanda Lines, director of Presto Property Solutions, reaching a settlement with WA’s Consumer Protection office in relation to advertisements made regarding a “rent-to-buy” scheme.
Rent-to-buy schemes are targeted at people who don’t qualify for a home loan through traditional means.
Buyers enter into a contract whereby they agree to pay rent to the seller in return for being able to purchase the property at a later date.
The schemes usually involve paying a substantial deposit as well as an additional regular payment above the rent which is intended to go towards the eventual purchase of the property.
According to Consumer Protection, Lines made the false claims to three prospective buyers in 2010, leading them to believe that she was the owner of the properties at the centre of the scheme when she was not and that she could help them buy the houses without the need for a loan.
As director of Presto Property Solutions, Lines also distributed false advertisements online and throughout suburbs in Perth that made claims such as “I buy houses fast” and “No banks.”
As well as having to provide the $70,000 in compensation to the three prospective buyers, Lines and Presto Property Solutions entered into an enforceable undertaking with Consumer Protection which prevents them from representing to potential vendors that she or the company actually purchase the properties and acquire the freehold title to the properties when they do not, representing to potential buyers that she or the company own the property, unless they are in fact the owner of the freehold title of the property, representing to potential buyers that they can purchase the property without a bank loan, unless there are reasonable grounds to make that claim.
Consumer Protection acting commissioner Gary Newcombe said the case highlighted the need for consumers to exercise caution when entering schemes such as rent-to-buy.
“We urge consumers to exercise a high degree of caution before entering into a rent-to-buy arrangement, as buyers who default on their tenancy agreement or can’t get finance to buy the property at the end of the option period are at risk of losing the deposit they paid and the money that was intended to go towards the purchase of the property,” Newcombe said.
“Consumer Protection has taken numerous actions against property promoters who have made misleading statements and engaged in deceptive conduct in order to attract people who are often desperate to sell or buy property,” he said.
“Our actions against promoters of rent-to-buy schemes and the Court outcomes that we have achieved should send a clear message to the industry that they need to act fairly with consumers or face the consequences.”
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Survey says Sydney and Melbourne property prices will grow for another six to 12 months
Representatives of some of Australia’s biggest financial institutions and property firms still have a positive outlook for real estate markets in Sydney and Melbourne for the short term at least.
According to the results of the latest Australian Property Institute (API) Property Directions Survey, the majority of respondents believe the upswing in residential property prices has between 6 – 12 months to run in each city.
According to the survey results, 44% of respondents believe Sydney’s price boom has six months to run, while 33% believe it still has year’s-worth of upward movement.
In Melbourne, 50% of respondents believe the Victorian capital will see prices rise for another six months, while 33% believes it will more likely be another 12 months of increases.
In terms of sustainability, Brisbane’s real estate is looked on as being the safer market, with the majority of respondents believing it is much less likely to form a bubble compared to either Sydney or Melbourne.
“For Brisbane, 70% of respondents indicate that residential property is not in a bubble, 24% indicate that it is in or is entering a bubble and 6% are unsure,” API NSW president George Vallas said.
“Results were split for Sydney, with 50% of respondents indicating residential property is in or is entering a bubble, while 50% indicate it is not in a bubble,” Vallas said.
“For Melbourne, 56% of respondents believe residential property is in or is entering a bubble, while 44% believe it is not in a bubble,” he said.
Respondents were also asked what they believed where the main drivers of residential capital growth levels for Sydney, Melbourne, Brisbane and Perth, with interest rates a common denominator across the four cities.
For Sydney, Melbourne and Brisbane 100% of respondents believed interest rates were either a significant or very significant driver of property prices, while 88% of respondents said the same thing for Perth.
Sixty-five per cent of respondents believe interest rates will remain at similar levels for the next year, while 80% believe they will be higher in three-year’s time.
Foreign investors are also looked upon as a major growth driver for Melbourne and Sydney, with 100% and 88% of respondents believing they are having a significant or very significant impact on prices in the two markets respectively.
The majority of respondents (80%) believe foreign investment levels will stay at similar levels for the next year, with only 35% believing they will be lower in three-year’s time.
Negative gearing is considered a major growth driver, with more than 50% of respondents believing significant or very significant impact on prices in all four markets.
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