Public warned over real estate claims

1.00pm

The Consumers' Institute is warning people to be wary of a real-estate and investment seminar to be held in Auckland.

"The promises made for this seminar are some of the most ludicrous we've ever seen," says the institute's chief executive, David Russell.

Advertising promises that attendees at the seminar on June 29 will learn how to buy real estate at under half price, how to retire in as little as two years, and achieve annual returns as high as 50 per cent on "Government-approved" investments.

Many people have received free invitations to the Aotea Centre event, which is supposedly worth $149.

The Herald phoned the freephone number given in an advertisement for the seminar in today's paper, and was connected to a call centre in Probo, Utah. At the time of going to press, messages asking promoters to respond to The Consumers' Institute's criticism had not been returned.

The institute says that the day-long "National Training Conference" is simply an infomercial where the presenters sell tapes, compact disks and books on real estate and investment.

They are tailored for the United States and it is very unlikely, says the institute, that they have given any thought to local conditions.

An example of this is the NTC website, it says, that claims seminar attendees will learn how to get around paying capital gains tax on real-estate. "We do not have capital gains tax in New Zealand," says the institute.

The NTC brochure states "four of New Zealand's Greatest Financial Superstars" will be presenting the seminar - William Danko, James Smith, Phil Town and Wayne Gray. All are American, says the institute, and were recently touted in Australian seminars as "four of Australia's Greatest Financial Superstars".

It also slams promoters' claims that their investment scheme is "Government-approved."

"The New Zealand government does not "approve" any investment schemes. Another promise is that if you attend their seminar you will be able to retire in two to five years with an additional cash flow of $9,100.78 per month.

"This same figure is used in Canada, Australia and New Zealand, with no allowance for exchange rate changes, and is ridiculously detailed (right down to 78 cents), considering how different everyone's financial situation is."

According to Mr Russell, "this is another dodgy travelling road show that will be here today, gone tomorrow. The only people who will be richer as a result are the self-proclaimed 'financial superstars' fronting it."

The Australian Securities and Investments Commission has recently warned Australian investors against being taken in by the seminar's claims.