2017 saw the highest number of first-time buyers since 2006, and the selling market isn’t the only UK real estate market that is doing well. More people than ever before are renting properties – but whether you are buying or renting, there are a few real estate scams that you need to be aware of.
Real estate scams are very common in Britain. Every year fraudulent property sellers cost people tens of thousands of pounds, and this can be financially devastating – but thankfully you can avoid these scams if you know what to look for. Here are two real estate scams that you need to avoid if you are trying to buy or rent a home.
Reverse mortgage scams
Reverse mortgages are designed to help senior citizens when it comes to selling or buying their home, but sadly the mortgages have become the vehicle for a series of different scams. This is very problematic as there is an increasing ageing population in the UK, so it is likely that the scam will become even more common. Normally the scammer will mislead the person by encouraging them to take out an unnecessary loan so that they can steal the money from them, but you can avoid this by only working with reputable companies, rather than lone salesmen.
Rental fraud is at an all-time high in Britain; the scam increased by 44 percent last year, and it is set to keep rising, so if you want to rent a home you should understand how rental fraud works. Normally this is when fake landlords dupe potential tenants into paying deposits for properties that don’t exist. This means that you will be out of your deposit and left without a home, which can cause further financial problems. Thankfully this scam can also easily be avoided by renting a home through a reputable, established company, rather than a salesman.
Remember if a deal seems like it is too good to be true, it probably is. It is also important to avoid pushy landlords or salespeople who put pressure on you to make payments as soon as possible, especially if this makes you feel uncomfortable. If you are buying or renting a new home and you want to make sure that you don’t get scammed, make sure that you team up with a trustworthy company with lots of previous happy customers!
Author: Cassandra Reed