How to Spot Bad Property Investment Advice – And Avoid Costly Mistakes

Not all property investment advice is created equal. In fact, if you’re not paying for truly independent advice, there’s a good chance you’re being sold something – whether it’s a property, a strategy or a financial product. 

The property industry is full of slick sales tactics, one-size-fits-all solutions and so-called “advisors” who are really just salespeople in disguise. If you want to make smart investment decisions, you need to see through the noise and ask the right questions. 

In today’s blog we uncover six major red flags to watch for when seeking property investment advice and how to protect yourself from making costly mistakes. 

  • Red Flag #1  No Disclosure of Kickbacks or Commissions 
  • Red Flag #2 High-Pressure Sales Tactics 
  • Red Flag #3 Discounts for Signing Contracts Immediately 
  • Red Flag #4 Free Seminars That Turn Into a Hard Sell 
  • Red Flag #5 One-Size-Fits-All Investment Advice 
  • Red Flag #6 The “Cut and Run” Approach  
  • The Questions You NEED to Ask Before Trusting Property Investment Advice  
  • Protecting Yourself from Bad Property Investment Advice

 

Red Flag #1. No Disclosure of Kickbacks or Commissions 

Ever wondered why some property investment advice is “free”?  

If you’re not paying a direct fee, you’re still paying—just not in the way you think. The cost is often hidden in the inflated price of the property, with profits funneled back to developers, sales companies, or product providers through hefty commissions. 

💡 The truth? 

  • If an advisor is making money through hidden commissions or kickbacks, they’re not working for you—they’re working for the seller. 
  • Genuine advice comes at a cost. If there’s no transparent fee structure, you’re not getting advice—you’re being sold a product or strategy and probably a dud property. 

🔎 What to do: 

  • Always ask, “How do you get paid and how much?” 
  • Choose an independent property advisor who is not financially tied to property sales.

Red Flag #2. High-Pressure Sales Tactics 

Does the advisor give you time to consider your decision or are they rushing you to act fast?  

If it’s the latter, that’s a major red flag. 

💡 The truth? 

  • Property investment should be a well-thought-out decision, not a rushed commitment. 
  • If you’re being told to “act now or miss out”, it’s likely because the deal benefits them, not you. 

🔎 What to do: 

  • If you feel pressured to sign quickly, walk away. 
  • A solid investment will still be a good opportunity tomorrow.

Red Flag #3. Discounts for Signing Contracts Immediately 

If you’re being offered a discount for signing on the spot—run! 

💡 Why? 

  • Real property deals don’t come with “limited-time only” discounts. 
  • These offers are designed to stop you from seeking independent advice or conducting due diligence. 

🔎 What to do: 

  • Never let a “today-only discount” push you into a long-term financial commitment. 
  • Take the time to review contracts carefully and get a second opinion from an independent property expert (like us!)
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Red Flag #4. Free Seminars That Turn Into a Hard Sell 

You’ve seen the ads: “Free property investment seminars” promising to reveal insider secrets.  

But what starts as “education” often ends in a high-pressure sales pitch. 

💡 The truth? 

  • These events are often a sales funnel designed to push attendees into buying off-the-plan properties, house-and-land packages or specific financial products.

🔎 What to do: 

  • If someone tries to sell you a property at a seminar, leave immediately. 
  • Be wary of “education events” where the real goal is to sell you a property or financial product. 

Red Flag #5. One-Size-Fits-All Investment Advice 

Good property investment advice should be tailored to your financial situation, risk tolerance and long-term goals.  

If an advisor pushes the same strategy for everyone, that’s a problem. 

💡 The truth? 

  • Property investment isn’t one-size-fits-all—what works for one investor may be a bad fit for another. 
  • Wealth-building requires research, education, and planning—not quick-fix solutions. 

🔎 What to do: 

  • Look for advisors who take the time to understand your financial situation. 
  • Ensure your investment strategy aligns with your future goals, cash flow and risk profile.

Red Flag #6. The “Cut and Run” Approach 

Does your advisor stick around after the purchase or do they disappear once the deal is done?

💡 The truth? 

  • Genuine property advisors offer ongoing support and help you plan for the long term. 
  • If they disappear after you buy, they were only interested in making a sale. 

🔎 What to do: 

  • Work with advisors who provide continuous education, strategy updates and support after settlement. 

The Questions You NEED to Ask Before Trusting Property Investment Advice 

Ask the “advisor” these key questions: 

  • Do you sell property? 
  • Do you earn commissions from developers or sales? 
  • Are you truly independent? 
  • How are you paid? 
  • What makes your advice different from a salesperson’s? 

Ask yourself: 

  • Are they pushing only one investment strategy? 
  • Have they discussed my financial situation, goals, and risk tolerance? 
  • Are they jumping straight to the purchase stage without proper planning?

Protecting Yourself from Bad Property Investment Advice 

Independent property investment advice is paid for, not “free”. 

If you’re not paying for advice, you’re being sold a product or strategy. 

The property industry operates on two models: 

  1. Selling property and financial products (commission-based) 
  2. Providing genuine, independent advice that puts your interests first. 

Not all that glitters is gold. Be smart, ask the right questions, and protect your financial future. 

 

Want to Learn More?

Listen to #303: Avoiding Property Investment Traps – Off-the-Plan Risks, Market Timing & Spotting Property Spruikers

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