Prospective Buyers of Land Beware

Department of Trade and Industry - 17th August 2004

Consumer Minister warns public about this year's favourite scams

Investors keen to make a quick profit are falling victim to an array of sophisticated scams, Consumer Minister Gerry Sutcliffe has warned today.

Mr Sutcliffe is warning consumers and businesses about the type of scams that have been prevalent in the last year, and warning the scammers that if they continue to operate, the DTI's Companies Investigations Branch will come knocking.

Agricultural Land

The company buys up farmland and subdivides it into plots suitable for reasonable size houses. These plots are then sold to investors at many times the purchase price without planning consent. The company never says planning consent will be granted but issues copies of press releases and quotes that give the impression the Government is about to change its policy. It also draws up plans, like housing estates with proposed access roads etc, and agrees to make applications for planning consent. The land is also sold through independent agents over which the company has no control.

The downside is that people end up paying thousands for agricultural land with a value of a few hundred, which is then abandoned and becomes neglected.