Unscrupulous traders entice you with false promises regarding the returns on real estate.
Given the financial crisis as an investment real estate is in high demand. 63 percent of employed Germans consider it a very safe retirement account - according to a recent survey of Postbank. But unscrupulous traders have recognized the trend and sell unsuspecting investors substandard properties at inflated prices. Nicole Mutschke, a lawyer specializing in banking and capital markets law, warns of a wave of crap real estate.
The term "junk property" means a property that is about far more than the value and return on sold under false pretenses. According Mutschke recognize dubious deals: The buyers are called unsolicited and with tantalizing prospects persuaded to consultation. It can be described only benefits of the acquisition. Risks are silent, represented an inspection to be unnecessary. Above all, an exaggerated price, an alarm signal. "Where is the purchase price of the property over the 14-times the net annual rent, should you are sitting up. As of 14-fold over control considered immoral," says Nicole Mutschke.
