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Real estate - a warning about financial planners

  1. I recently heard of what I believe to be a criminal act by a group of financial planners relating to the sale of property.

    A friend of mine was trying to sell a unit for $250,000 but wasn't having any luck and was getting concerned about the property bubble so he approached a group of financial planners and said to them, "anything you can sell the unit for above $240,000 you can keep".

    They got back to him the next day to say they had sold it to one of their clients, for $270,000! They also told him they would be able to sell many more properties on the same basis.

    Although I do not know whether the financial planner disclosed the size of the commision to his client, I still believe the planner wasn't acting in the best interest of his client by selling the unit at an inflated price and by taking such a large commision.

    I think this story is just another example confirming that there is a property bubble occuring and also a warning to check with financial planners as to what commision they are earning on any product they sell.

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