Late last year and again earlier this year I warned about a small Auckland valuation firm planning to start a commercial property syndication business. They intend to trade under the name “MATES INVEST”.
STAY WELL CLEAR
These half-wits have come up with a unique angle, unique because it’s spell-bindingly dumb.
That is not to leverage their as yet unpurchased buildings to flog to the gullible. After my blast they laid low but they’ve now resumed promoting this stupidity.
Again they flog the stupid concept that not raising a mortgage from a foreign bank means the rental returns stay in New Zealand.
That of course is nonsense. Buy a new car, travel abroad, buy petrol, a book, shoes or anything else imported with the dividends and the cash goes offshore.
LEVERAGE IS THE MOST BASIC PRINCIPLE OF ALL INVESTING, principally to compound the return but also to ensure your investment return doesn’t actually lose value through inflation.
It’s not bloody hard albeit for these clowns, despite me spelling it out, it’s plainly over their heads.
They’re actually a menace to society in embarking on a course of action which will lose gullible investors money.
Anyone can promote investment schemes. It’s overdue for government regulation demanding some knowledge which these “MATES INVEST” jokesters plainly lack. If they start advertising this angle I will lay a complaint with the appropriate financial authorities.
Aware that I’m closing this Blog after the election they recently had a half page sales pitch in the Post, (formerly the Dominion Post) plainly a paid advertorial the Post often resorts to in return for actual advertising. Should they start advertising, I’ll be on their tail, not merely with the relevant financial authorities but also warning blasts on Kiwiblog and the many other sites which run my Blog.
On the other hand, if they come to their senses and offer a leveraged investment I’ll stay silent, unless it’s spell-bindingly stupid such as a block of shops in Patea and the like.