According to the Australian Competition and Consumer Commission, a spruiker is someone who is “motivated to gain money at your expense”.
Spruikers do this by marketing themselves as property investment experts, commonly inviting you to attend a free “wealth creation seminar” or training session. During this session, they’ll offer you a hot property deal that comes with spectacular returns – then use hard-sell tactics including cashback offers and rental guarantees to convince you to sign up on the spot.
However, the reality is that these hot deals are usually substandard properties that are being sold at an inflated cost. And if that’s not bad enough, the spruiker is being paid a big commission to sell it to you – which has already been factored into your ‘discounted’ purchase price.
The Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) issued a warning about property spruikers. In it they said:
“It’s quite common for developers to offer commissions of $50,000 or more as well as gold Rolexes for help to offload subpar stock.”