Many interstate investors are being caught up in buying home and land packages in new Victoria suburbs at inflated prices, with the promise of high rental returns that are just not eventuating leaving them in hot financial water.
A couple of Melbourne based property development and builder affiliated companies are currently involved in this practice. The companies are currently evolved in deliberately inflating there land prices (so there values stack up) with the use of behind the scenes builders rebates on the land in some cases up to $25,000 to $30,000 each lot. One particular company has been developing land and building houses in a very reckless way with as much as 50% of the estate being sold to the unsuspecting investor.
Not only are the investors being hung out to dry financially but so are all home owners and investors in the surrounding area, with such a high volume of rental properties being put on the market it has had a dramatic effect on property values sending them spiraling downwards.
Look out investors!!!!!!