Land Banking Scams
Received a proposal to invest in undeveloped land in a foreign country, with a view to double the money in a few years?
This may sound attractive, but think twice before you part with your money. Despite being presented with financial reports showcasing the prospect of steady returns, or testimonials of how others have profited from it, take your time to understand the crucial points in it- the risks involved, some schemes have also turned out to be scams, so investigate that. Sometimes, along with an opportunity to make money comes the chance of you losing all of it. If it sounds to be too good then it is. In the case of land banking, you may have seen media reports about investors losing money in land banking schemes in various countries.
How to spot the land scam?
Often highlighting the need for quick action, not all Land banking scams are advertised, many of them depend on phone calls. Generally, they steer you away from using a solicitor to handle the deal, arguing that it's so cheap that you don't need the added expense. As a matter of fact, a lot of people caught out by land scammers have no aim of ever building a house nevertheless are merely lured in by the hope of making easy money. However, potential self-builders are also at risk and many of them have been trapped into buying into land banking schemes. Despite the fact that not all land banking schemes are a rip-off, it is habitually not made clear to investors that there are boundaries on the maturity of the land or that it is otherwise protected. Having said all that, there are follow-up scams moreover where plot-holders are asked to pay a huge amount of money to resolve their holding once they understand they will never turn a profit.
If truth be told, investors are sold land which has no or very little potential for development; one that does not exist or that does not belong to the person who is advertising and to which is very unlikely to be granted planning permission in the foreseeable future. Well, there are several tricks in it, so it is important to be aware of things that will help you stay away from scams related to land banking.
Read the offer documents and examine every single detail carefully, before you sign-up or place your hard-earned money in a land banking proposition. Do not get tempted or lured by stash that promises to pay you high returns with fewer investments. Always remember, do not be dependent on what the person marketing the land banking proposition tells you, do your own research instead.
If you are being scammed then it is important for you to report it to the financial conduct authority that can help you close down such deceitful land banking schemes.