Is the aggressive marketing of buy-to-let property schemes to the uneducated investor morally correct?

Buy To Let

We are living in a time when markets are flat, interest rates are low, essentials are getting more expensive and the man on the street is desperate to increase his personal wealth and secure his families financial future. These factors all combine to create a "perfect storm" for all kinds of get-rich-quick schemes which will destroy many more families than they enable.

I am personally aware of many friends and acquaintances who have made huge fortunes out of the property market in the past and will in the future. I am also however privy to many cases where people have lost everything or nearly everything due to property deals/schemes going wrong. The question then seems to be, how do we spot a sure thing and when is the right time to get involved? I for one cannot answer that question so I stay away from such investments and focus on what I know but what about the average man in the street who does not possess this skill but is told he does?

I have noticed recently more and more "free" seminars aimed at the broad middle class which lure these people with the promise/dream of building their own property portfolio which will "educate their children" and "look after your future generations". All the upsides are highlighted in a way that they seem like easy certainties while there is zero mention of the potential risks and pitfalls. The truth is that these schemes have been around for yonks and yet people fall for them again and again. The instigators make their money out of the property development so they get paid upfront while the risk sits with the banks (limited as they own the properties) and the individuals who sign surety for the financing. No doubt the instigators also get kick-backs from the banks, legal firms etc; the point is, they carry very little risk once the properties have been sold.

So while we are all adults and are free to make our own decisions which will determine our future; is it morally fair or ethical to tell everybody who comes to your "free" seminar that they are the next property mogul when you know deep down that most are not. That must be where greed takes over and your care for your fellow man gets smothered by your own need to accumulate wealth and riches.

Each of us needs to understand that there is no easy way to building wealth, it takes discipline and hard work and very often we need to get qualified, impartial advice. Contact a CERTIFIED FINANCIAL PLANNER PROFESSIONAL, for an opinion and whatever you do make sure you have a long term plan.