HOUSE/LAND PACKAGE SCAMS

Two-tier marketing scam

One of the most common property scams of the 1990s was the two-tier marketing scam. Out-of-town investors were flown into an area (often the Gold Coast) and talked into buying over-priced properties. This created what became known as a two-tier property market - the first tier being sold to locals at the correct market price and the second tier being properties sold to uninformed strangers at inflated prices. In many areas, more than half the sales were made to out-of-town buyers. Thousands of people were ripped off in two-tier marketing scams.

While this scam is still prevalent in the 2000s, many of the smarter spruikers have switched from selling established properties (such as units, villas and townhouses) to selling house and land package deals where it is easier to disguise their huge rip-off mark up.

Neil Jenman has been tracking many of the most notorious two-tier spruikers for years. As soon as they bob up with a new company name and a new scheme in a new area, Jenman is writing articles to warn the public.

FOOTNOTE: Recent media reports suggest that some of the most infamous two-tier spruikers are trying to get a class action going against Neil Jenman. Imagine it - spruikers going to court and saying that Jenman's articles are preventing them from ripping off the public. That's right, Neil Jenman is interfering with their democratic right to scam. And he's proud of it.