select
|

How to avoid investment scams

The Financial Services Board (FSB) recently advised the industry that despite its licence being withdrawn in August 2013, Mentor Life Cover and Investment Ltd continues to render financial services without authorisation, and further warned the public against dealing with MBB Legacy Investment Group, another entity not licensed in terms of the FAIS Act and thus not authorised to render financial services. How many consumers are aware of these warnings is questionable.

It is therefore not surprising that despite FSB warnings and the number of determinations handled by the FAIS Ombud each year, many South Africans are still being swindled into investment scams. One of the latest determinations handed down by the FAIS Ombud involved a widow who was defrauded of the money received from her late husband's life insurance policy after investing it with a financial advisor who worked for Nedbank, and swindled Beukes into investing into his newly established company, Jam Financial Planning. In another case, an investor invested R100 000 with iBear and R200 000 through Blue Platinum Investments in various blue chip shares and commodities on the JSE, but was swindled out of R180 000. Investors should note that the Ombud can only deal with cases up to the value of R800 000.

"The only way investors can completely avoid investment scams is to retain absolute control of their hard-earned money. It is one of the core principles of the P3 Investment System: never create a distance between yourself and your money," notes Dr Koos du Toit, CEO of P3 Investment Group. "At P3, we believe you should never give your hard-earned money to an unknown third party to invest on your behalf! You should always keep 100% control over your invested money. You should know exactly where your money is and what it is doing - preferably where you can see and touch it."

The one investment that allows investors to have 100% control over their hard-earned money and keep it where they can see and touch it, is bricks-and-mortar. And a well-chosen buy-to-let property will not only protect your investment by producing steady capital growth year after year, but will also generate an ongoing, passive monthly income that keeps pace with inflation, year after year.The ability to generate both capital growth and passive, ongoing income, without relinquish control of the investment to any institution or individual, are the reasons why direct property investment remains the top asset choice for the world's wealthiest.

The reason why investors in buy-to-let property can retain absolute control is because buy-to-let property investment is stunning in its simplicity: you obtain a home loan to buy a property, which you then rent out to a tenant. The rental from the tenant covers the bulk of the bond repayments, so your own monthly investment is a relatively small amount. However, as the rental increases every year, but the bond repayment amount stays the same, the rental soon - within three to eight years - covers the entire bond repayment and other expenses, which means the property starts generating an income for you. Once the bond is paid off, the bulk of the rental amount becomes income in your pocket - every month for as long as you, and your children, own the property - and you never have to work for it! And, while you are earning this income every month, which keeps pace with inflation over time, the property is also increasing in value.

"Over the last 10 years, the P3 Investment Group has helped thousands of South Africans to avoid investment scams and the risks involved in handing their hard-earned money over to an unknown third party to invest on their behalf," concludes Dr du Toit. "Instead, we help investors to keep 100% control of their money through an investment in brick-and-mortar where they can see and touch it. To invest in an income-generating and capital growth-producing buy-to-let property, investors don't need qualifications or experience, or much time, training or effort, or a lump sum to invest or even a monthly investment that is more than current retirement savings. All that is required is the willingness to take responsibility for growing and protecting their own hard-earned money and their own financial future, by implementing the steps they will find at www.hope.co.za."


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK