Real Estate Investor Magazine South Africa July 2016 | Page 17

land based on a future development, such as planning
permission, carry out extremely thorough checks.
View the land personally. Contact the local planning
department to find out if planning permission has
been applied for, if it is ever likely to be granted and
how long it might take. If you are buying a property in
another country, do some research about the property
laws in the country and get local, independent legal,
and property advice.
Read the fine print: Never agree to any business
proposal on the phone or in person: always ask for
an offer in writing. Never sign anything you haven’t
read thoroughly and understand clearly. Do not allow
anyone to put you under pressure to sign documents.
If the documents contain any clauses you don’t
understand, get a legal opinion. Read all the terms and
conditions of any offer very carefully to understand
any hidden costs and to know exactly what you will be
liable for if you decide to pull out. Always keep copies
of all paperwork, as well as notes of any phone or faceto-face conversations.
Apply common sense: Be realistic. There are
no legitimate get-rich- quick schemes. If something
sounds too good to be true, it probably is. Beware of
bargains and great deals. If you are offered a product,
service or property at a rock- bottom price, be
suspicious. Guard your personal details closely. Never
give out your personal details and information over
the phone, via email or on a website, unless you have
initiated the contact and trust the other party. Shred
personal documents, including ATM slips before
recycling the paper. Do not pass on chain letters
or take part in pyramid schemes: you will lose your
money and your friends.

Never hand over your money to anyone:

Never pay in advance for anything. Don’t pay a
deposit until you have inspected the property and
don’t pay a contractor until they have delivered what
they promised. Being asked for money up front should
set off warning bells. Don’t fall for the 300-year old
advance fee scam in any shape or form! Do not send
any money or pay any fee to claim a prize or lottery
winnings, or to share in any kind of opportunity, or to
get any type of job. Don’t send money to people you
don’t know well personally and never give your credit
card or online account details to anyone.

Spend the money to safeguard yourself:

Spend the money you need to spend to ensure
an investment is above board. Pay the fees for a
property inspection, a property valuation and legal
or investment advice. If the investment you are
considering is so lucrative, spending a few thousand

www.reimag.co.za

rands beforehand should be richly rewarded. If the
opportunity is a scam, you